AGL Energy Ltd. has narrowed its full-year earnings forecast on the back of lower costs and higher consumer margins as it delivered lower year-over-year first half results.
AGL narrowed its fiscal 2026 earnings guidance and now expects full-year net profit after tax of between AU$580 million and AU$680 million, compared to its previous range of between AU$500 million and AU$700 million.
The company attributed the adjustment to reflect a strong first half performance driven by consumer margins and lower operating costs. AGL is also targeting AU$50 million of sustainable net operating cost reductions in fiscal 2027.
The energy giant said its underlying net profit for the fiscal first half year to December 31, 2025, fell 24 per cent year over year to AU$353 million from AU$377 million.
AGL declared an interim dividend of 24 cents per share, up from 23 cents per share in the first half of the 2025 financial year.
AGL CEO Damien Nicks said the first-half result reflects a strong operational performance and financial momentum across its business.
“The improved availability and flexibility of our generation asset portfolio, including the continued strong performance of our batteries, helped mitigate a period of low price volatility in the NEM (National Electricity Market), which was driven by milder weather and lower transmission constraints,” Nicks said.
AGL’s retail transformation program is progressing, with key capabilities deployed and committed benefits on track, the CEO commented.
The company’s development pipeline grew to 11.3 GW, up from 9.6 GW.
AGL signed two new long-term power purchase agreements to offtake electricity generation from the Palmer wind farm in South Australia and the Waddi Waddi wind farm in Western Australia.
AGL also announced it would divest its telecommunications business to Aussie Broadband in a deal worth AU$115 million in the internet service provider’s shares. Aussie Broadband will acquire AGL’s 400,000 telecommunications customer services.
The deal will allow AGL to simplify its customer market operations and reduce ongoing operating costs.
Aussie Broadband is expected to issue its shares to AGL in June.
