APA Group (APA) H2 2026 earnings summary

Executive summary

• Delivered strong FY26 results with underlying EBITDA up 8.3% to $2,183 million, driven by inflation-linked tariffs, new asset contributions, and $80 million in cost reductions, exceeding guidance midpoint.

• Free cash flow increased 3.2% to $1,118 million, supporting the 22nd consecutive year of distribution growth.

• Statutory net profit after tax rose 81.4% to $234 million compared to FY25.

• Simplified business through divestment of non-core Networks and GDI businesses, generating $101 million in cash proceeds and transferring 725 employees.

• Fully funded $3.5 billion organic growth pipeline for FY27–FY29, supported by a strong balance sheet and funding capacity.

Financial highlights

• Underlying EBITDA margin improved to 77.9% (+370bps), reflecting robust asset performance and cost reductions.

• Segment revenue grew 3.2% year-over-year to $2,803 million.

• Distribution per security increased 1.8% to 58.0c, marking the 22nd consecutive year of growth.

• Statutory net profit after tax rose to $234 million, up from $129 million in FY25.

• FFO/Net Debt at 11.2%, comfortably above the 8.5% threshold.

Outlook and guidance

• FY27 underlying EBITDA guidance set at $2,260–$2,340 million, a midpoint growth of 5.4% over FY26.

• FY27 distribution guidance of 59.0c per security, up 1c from FY26.

• Organic growth CapEx pipeline increased to $3.5 billion for FY27–FY29, with funding from operating cash flow, balance sheet, and DRP.

• Cost reduction initiatives expected to add $20 million in FY27.

• Guidance assumes continued inflation-linked tariff escalation, new asset contributions, and annualized cost reductions.