By David Winning

SYDNEY--Shares of drinks packaging group Orora rise to their highest level since early 2025 as investors cheer volume growth within the Saverglass premium glass business that has struggled for momentum since it was acquired in 2023.

Orora's stock rises 8.2% to A$2.38 in early trading on Thursday after reporting a first-half net profit beat and a new plan to buy back shares worth up to 200 million Australian dollars, equivalent to US$142.6 million.

"Better than feared," was Jefferies's early take on Orora's result. Earnings before and interest and tax, along with net profit, were both some 2% ahead of its forecasts, driven by better divisional earnings.

Jarden analyst Jakob Cakarnis said the market would likely be relieved that Orora had maintained annual guidance, which includes growth in earnings before interest, tax, depreciation and amortization from all business units.

"Focus will be on the delivery of volume growth within Saverglass, which likely was the upside surprise for the market," Jarden said.

Saverglass lifted volumes by 2.6% in the six-months through December, reversing declines from the previous two half-year periods. Attention could shift to operating leverage in Saverglass if Orora is able to sustain volume growth into 2H and FY 2027, given restructuring efforts in the business, Jarden said.

Still, Citi had questions around Orora's cans business. It noted that cans volumes were up 11% in the first half and ahead of expectations, but the division's earnings before interest and tax were largely in line with consensus hopes.

"Although segment guidance was retained, we note consensus has circa A$58 million Ebit in 2H, which is a step up from 1H and A$54 million in 2H FY25," analyst Samuel Seow said. That suggests Orora needs to deliver higher profitability from cans if volumes are flat, he said.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

February 11, 2026 18:34 ET (23:34 GMT)

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