APA Group (APA) H1 2026 earnings summary

Executive summary

• Delivered strong 1H26 results with underlying EBITDA up 7.6% to $1,092 million, driven by new assets, inflation-linked tariffs, and cost reduction initiatives.

• Statutory profit after tax rose 179.4% to $95 million year-over-year, reflecting higher earnings and lower net interest costs.

• 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, supported by strong balance sheet and S&P threshold modification.

Financial highlights

• Underlying EBITDA up 7.6% to $1,092 million; margin expanded to 77.3%.

• Free cash flow for the half was $556 million, up 0.7% year-over-year.

• Statutory net profit after tax increased to $95 million, up 179.4% year-over-year.

• Segment revenue up 3.6% to $1,412 million; total statutory revenue (excl. pass-through) up 2.0% to $1,391 million.

• Corporate costs reduced by 13.6% year-over-year, progressing toward a $50 million FY26 target.

Outlook and guidance

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

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

• Organic growth capex pipeline for FY26–FY28 raised to ~$3 billion, fully funded from balance sheet and DRP.

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

• Guidance subject to asset performance, macroeconomic factors, and regulatory changes.