Origin Energy Limited (ASX: ORG) has delivered mixed results for the half year ended 31 December 2025. The Company announced underlying EBITDA of $1,589 million, down from $1,926 million in the prior corresponding period. The Origin Energy HY Results highlight a sharp contrast between near-term earnings pressure and accelerating investment across batteries, digital platforms, and energy transition assets.
Figure 1: Origin Energy underlying EBITDA by segment comparison for HY25 and HY26 [Source: Origin Energy]
The Origin Energy HY Results declared a 30-cent per share fully franked interim dividend. This decision reflects continued balance sheet strength despite softer earnings across several business segments during the six-month period. Overall, the Origin Energy HY Results reflect a business absorbing short-term volatility while positioning for structurally stronger earnings over the medium term.
How Did Origin Energy Perform in Energy Markets During HY26?
Origin Energy HY Results show that the Company’s Energy Markets division achieved underlying EBITDA of $860 million for HY26. This exceeded expectations and improved from $738 million in HY25. The Company added 96,000 customer accounts during the period, including 52,000 from the Energy Locals acquisition. According to the Origin Energy FY25 Half Year Report, customer growth and cost reductions were key drivers supporting Energy Markets margins.
Figure 2: Movements in Origin Energy Energy Markets underlying EBITDA from HY25 to HY26 [Source: Origin Energy]
Electricity gross profit improved by $102 million, driven by lower green scheme costs. Natural gas gross profit declined $33 million as supply contracts repriced. Cost to serve reduced by $32 million, tracking toward the Company’s target of $100 million to $150 million in savings by FY26.
What Battery Storage Progress Has Origin Energy Made?
- Eraring Battery Stage 1: The 460 megawatt facility came online in December 2025 and began generating revenue during the first half of the year
- Expanded Investment: Origin Energy committed an additional $80 million to expand Eraring battery stage 2, increasing storage to nearly six hours of duration
- Total Portfolio: The Company is investing approximately $1.8 billion for 1.7 gigawatts of battery capacity across owned and tolled projects
Battery investments remain a central theme in the Origin Energy HY Results as storage assets increasingly contribute to earnings resilience. Supernode stage one commenced commissioning from January 2026. The battery investments deliver expected post-tax returns of 8 to 11 per cent, with early performance trending toward the upper end. These storage assets provide revenue during peak pricing periods while supporting grid stability.
How Did Integrated Gas Contribute to Origin Energy’s Results?
Origin Energy’s share of APLNG earnings totalled $798 million for HY26, down $240 million from HY25. Lower realised LNG prices and reduced sales volumes drove the earnings decrease. APLNG achieved production of 339 petajoules during the half-year.
Figure 3: Origin Energy Integrated Gas and APLNG underlying EBITDA and operating metrics comparison [Source: Origin Energy]
The Company received $542 million in fully franked cash distributions from APLNG during HY26. Full-year distribution guidance ranges from $700 million to $950 million. LNG trading delivered gains of $84 million, down from $285 million in the prior period.
What Is Happening with Octopus Energy and Kraken for Origin Energy?
- Customer Growth: Octopus Energy added approximately 1.2 million accounts globally during the six months, with 800,000 accounts outside the UK market
- Kraken Expansion: The technology platform added 16 million contracted customer accounts, bringing the total to 90 million contracted accounts globally
- Valuation Milestone: Kraken completed its first standalone equity raise of US$1 billion, implying a look-through valuation of US$8.65 billion
Origin Energy’s share of Octopus Energy losses totalled $89 million for HY26 compared to a $24 million loss in HY25. Increased investment in UK smart tariffs and international expansion drove higher losses. The Company maintains a 22.7 per cent economic interest in both Kraken and Octopus Energy.
What Financial Position Does Origin Energy Hold?
Origin Energy reported adjusted free cash flow of $705 million for HY26, up $187 million from HY25. The Company’s adjusted net debt to adjusted underlying EBITDA ratio stood at 2.0 times, positioning at the bottom end of its 2 to 3 times target range. The Origin Energy Shareholder Update reinforced confidence in cash flow sustainability, supported by lower capex intensity and fully franked distributions from APLNG. The balance sheet metrics disclosed in the Origin Energy FY25 Half Year Report reflect a conservative leverage position despite elevated investment activity.
Figure 4: Origin Energy HY26 financial highlights including profit, cash flow, leverage and dividend [Source: Origin Energy]
Statutory profit after tax was $557 million for the half year compared to $1,017 million in HY25. Capital expenditure totalled $489 million, declining from $889 million in HY25 as battery investment spending tapered off.
What Guidance Has Origin Energy Provided for FY26?
Origin Energy upgraded its Energy Markets EBITDA guidance to $1,550 million to $1,750 million from previous guidance of $1,400 million to $1,700 million. APLNG production guidance was updated to 645 to 680 petajoules for FY26.
Figure 5: Origin Energy FY26 guidance summary across Energy Markets and APLNG operations [Source: Origin Energy]
LNG trading gains are expected to be at $100 million to $150 million for FY26. The Company’s share of Octopus Energy EBITDA is expected to be $0 to $150 million, unchanged despite higher first-half losses. Insights from the Origin Energy FY25 Half Year Report underpin the Company’s upgraded FY26 guidance and capital investment outlook.
What Strategic Priorities Is Origin Energy Pursuing?
Origin Energy continues executing its strategy to lead the energy transition through cleaner energy and customer solutions. The Company maintains four key strategic pillars, including customer solutions, energy supply, energy resources and the Octopus and Kraken platforms.
The Company’s customer base of 4.8 million accounts represents the largest domestic retail position in Australia. Origin Energy announced an extension of Eraring Power Station operations to April 2029 to support energy supply in New South Wales while maintaining its climate targets.
What Share Price Movement Did Origin Energy See?
Origin Energy shares have traded within a 52-week range of $8.62 to $13.13 per share. The Company’s dividend yield of 5.3 per cent before franking benefits remains attractive to income-focused investors.
Figure 6: Origin Energy share price performance over the past year [Source: ASX]
Final Thoughts
Origin Energy delivered a half-year result that balances near-term challenges with long-term strategic positioning. The Company faces headwinds from lower APLNG earnings and increased Octopus Energy investment losses. However, stronger Energy Markets performance and battery storage developments provide operational momentum heading into the second half.
The upgraded Energy Markets guidance and stable dividend signal management confidence in underlying business resilience. Origin Energy’s diversified portfolio across retail, generation, gas resources and technology platforms positions the Company to capture value from Australia’s energy transition while delivering returns to shareholders through this transformation period. Overall, the Origin Energy FY25 Half Year Report reinforces management’s confidence in the Company’s ability to fund growth while maintaining shareholder returns.
FAQ
Q1. What was Origin Energy’s underlying EBITDA for HY26?
Ans. Origin Energy reported underlying EBITDA of $1,589 million for the half year ended 31 December 2025.
Q2. What interim dividend did Origin Energy declare?
Ans. Origin Energy declared a 30 cents per share fully franked interim dividend for HY26.
Q3. How much battery storage capacity is Origin Energy developing?
Ans. Origin Energy is investing approximately $1.8 billion for 1.7 gigawatts of battery storage capacity.
Q4. What is Origin Energy’s FY26 guidance for Energy Markets?
Ans. Origin Energy upgraded its Energy Markets EBITDA guidance to $1,550 million to $1,750 million for FY26.
