Origin Energy books softened profits in H1 FY26

Origin Energy (ASX:ORG) announced its half-year results for the period ended Dec. 31, 2025 revealing a significant dip in statutory profit despite strong operational performance in its retail sector.

The energy giant reported a statutory profit of $557 million, a sharp decline from the $1.02 billion recorded in the prior first half.

Underlying EBITDA followed a similar downward trend, falling to $1.59 million from nearly $2 billion a year ago.

Management attributed these figures to lower earnings in Integrated Gas and a reduced contribution from Octopus Energy, which offset gains made in the domestic Energy Markets.

Despite the earnings squeeze, the company’s cash position remains robust; Adjusted free cash flow surged by $187 million to reach $705 million, bolstered by disciplined cost management and strong cash generation from energy sales.

CEO Frank Calabria remains optimistic, characterising the half-year as "solid" and upgrading full-year guidance for Energy Markets.

Calabria highlighted the steady performance of gas production and the strategic expansion of grid-scale batteries.

Octopus Energy continues its trajectory toward separation while maintaining customer growth.

Shareholders will receive a fully franked interim dividend of 30 cents per share, holding steady with the previous year.