Is Origin Energy Facing Short-Term Pressure or Building Long-Term Strength?
Source: Kapitales Research
Highlights:
Origin Energy Limited (ASX: ORG) reported total group revenue of AU$7,993 million at the time of writing, reflecting a 9% decline year-on-year, while statutory profit decreased 45% to AU$557 million at the time of writing.
Underlying profit stood at AU$593 million at the time of writing, indicating relatively steady core performance despite earnings volatility.
The company expanded its customer base by 96,000 accounts during the half at the time of writing and declared a fully franked interim dividend of 30 cents per share.
Origin Energy Limited (ASX: ORG) has released its half-year financial results for the period ended 31 December 2025, presenting a mixed performance that has drawn investor attention. At the time of writing, revenue came in at AU$7,993 million, down from the previous corresponding period, while statutory profit fell to AU$557 million. The softer bottom line reflects market fluctuations and accounting adjustments rather than a fundamental deterioration in operations.
What impacted earnings?
The decline in statutory profit was largely driven by movements in commodity hedging, foreign exchange effects and other non-recurring financial adjustments. When these are excluded, underlying profit reached AU$593 million at the time of writing, suggesting the company’s core energy operations remained comparatively stable. Despite earnings pressure, Origin maintained its commitment to shareholder returns by declaring a 30-cent fully franked interim dividend.
How is the business performing operationally?
Operational metrics showed encouraging trends. Origin added 96,000 customer accounts during the half at the time of writing, supported by gains in electricity, gas and internet services. Internet accounts increased to 232,000 at the time of writing, reinforcing the company’s bundled service strategy. In the LPG segment, underlying EBITDA rose to AU$48 million at the time of writing, reflecting improved volumes and supportive wholesale conditions.
What lies ahead for investors?
Origin continues to prioritise long-term growth, with expected capital expenditure between AU$600 million and AU$750 million at the time of writing directed toward batteries, renewables and transition-related initiatives. While short-term earnings have softened, customer growth, infrastructure investment and strategic positioning in cleaner energy markets indicate the company is focused on strengthening its future earnings base.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Is Origin Energy Facing Short-Term Pressure or Building Long-Term Strength?
Highlights:
Origin Energy Limited (ASX: ORG) has released its half-year financial results for the period ended 31 December 2025, presenting a mixed performance that has drawn investor attention. At the time of writing, revenue came in at AU$7,993 million, down from the previous corresponding period, while statutory profit fell to AU$557 million. The softer bottom line reflects market fluctuations and accounting adjustments rather than a fundamental deterioration in operations.
What impacted earnings?
The decline in statutory profit was largely driven by movements in commodity hedging, foreign exchange effects and other non-recurring financial adjustments. When these are excluded, underlying profit reached AU$593 million at the time of writing, suggesting the company’s core energy operations remained comparatively stable. Despite earnings pressure, Origin maintained its commitment to shareholder returns by declaring a 30-cent fully franked interim dividend.
How is the business performing operationally?
Operational metrics showed encouraging trends. Origin added 96,000 customer accounts during the half at the time of writing, supported by gains in electricity, gas and internet services. Internet accounts increased to 232,000 at the time of writing, reinforcing the company’s bundled service strategy. In the LPG segment, underlying EBITDA rose to AU$48 million at the time of writing, reflecting improved volumes and supportive wholesale conditions.
What lies ahead for investors?
Origin continues to prioritise long-term growth, with expected capital expenditure between AU$600 million and AU$750 million at the time of writing directed toward batteries, renewables and transition-related initiatives. While short-term earnings have softened, customer growth, infrastructure investment and strategic positioning in cleaner energy markets indicate the company is focused on strengthening its future earnings base.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au