APA Group (APA) H1 2026 earnings summary

Executive summary

• Underlying EBITDA for 1H26 rose 7.6% to $1,092 million, with margin expansion to 77.3%, driven by new assets, inflation-linked tariffs, and cost reduction initiatives.

• Free cash flow increased 0.7% to $556 million, supported by higher earnings despite higher tax and interest costs.

• Distribution per security grew 1.9% to 27.5 cents, with FY26 guidance reaffirmed at 58.0 cents.

• Organic growth pipeline for FY26–FY28 increased to ~$3 billion, underpinned by major gas and power projects and strong balance sheet.

• Enterprise-wide cost reduction initiatives delivered a 13.6% reduction in corporate costs, progressing toward a $50 million FY26 target.

Financial highlights

• Segment revenue up 3.6% year-over-year to $1,412 million.

• Underlying EBITDA margin expanded by 280 basis points to 77.3%.

• Statutory NPAT increased to $95 million, up 179.4% year-over-year, reflecting EBITDA growth and lower net finance costs.

• Free cash flow per security was 42.3 cents.

• Total capex for 1H26 was $407 million, with growth capex at $265 million.

Outlook and guidance

• FY26 underlying EBITDA guidance unchanged at $2,120–$2,200 million, with expectations to exceed the midpoint.

• FY26 distribution per security guidance reaffirmed at 58.0 cents, a 1.8% increase year-over-year.

• Organic growth capex pipeline for FY26–FY28 raised to ~$3 billion, up from ~$2.1 billion.

• Free cash flow for FY26 expected broadly in line with FY25, with growth anticipated beyond FY26 as tax normalizes.

• Revenues remain subject to customer recontracting, investment decisions, and regulatory frameworks amid uncertain market conditions.