APA Group has reported an 8.3 per cent rise in full-year underlying earnings to AU$2.18 billion for the period ended June 30, beating the midpoint of its guidance driven by tariff increases, asset additions, and strict cost controls.
The company delivered a statutory net profit after tax of AU$234 million, an 81.4 per cent jump from the previous year, while statutory revenue edged up 1.9 per cent to AU$2.76 billion.
Underlying EBITDA margins expanded by 370 basis points to 77.9 per cent, underpinned by AU$80 million in operational savings that surpassed APA’s original AU$50 million target.
Free cash flow rose 3.2 per cent to AU$1.12 billion, allowing the board to declare a final distribution of 30.5 cents per security. Total 2026 distributions reached 58 cents per security, marking the company’s 22nd consecutive year of distribution growth.
“FY26 was a year of strong financial and operational performance as we continue to deliver on our commitments to securityholders and position APA to capture value from our ~$3.5 billion organic growth pipeline,” APA CEO Adam Watson said.
“There is significant momentum with our growth strategy for the benefit of our customers, communities and securityholders.
“This is underpinned by strong demand for new energy infrastructure and confidence in the role of gas to support industry and provide grid stability for Australia’s electricity networks.”
During the year, APA invested AU$546 million across capital projects, including the East Coast Gas Grid expansion, the Brigalow Peaking Power Plant contract with CS Energy, and the Sturt Plateau Pipeline in the Beetaloo Basin.
Looking ahead, APA has issued fiscal 2027 underlying earnings guidance of AU$2.26 billion to AU$2.34 billion, representing 5.4 per cent growth at the midpoint, and expects to increase full-year distributions to 59 cents per security. Growth will be supported by an expanded AU$3.5 billion organic pipeline and full-year cost efficiencies.
“Given the breadth of opportunities ahead, we will continue to be disciplined in allocating capital to the best opportunities, with the greatest returns, for the creation of long-term securityholder value,” Watson said.
“There is clear customer and market support for the development of new renewable energy sources and for the role of gas in Australia’s energy sector – and APA is proud of the role we play as Australia’s energy infrastructure partner.”
