AGL Energy (AGL) investor relations material

Executive summary

• Underlying EBITDA was flat at $1,092 million, while Underlying NPAT declined 6.4% to $353 million, reflecting lower electricity margins and higher costs, partially offset by customer growth and cost optimization.

• Statutory profit after tax was $94 million, down $68 million from the prior period, mainly due to negative fair value movements in financial instruments.

• Customer satisfaction rose to 83.8, with strong customer growth and improved margins in energy, telco, and Netflix services.

• Strategic investments in flexible assets and batteries delivered higher realized price premiums and $35 million EBITDA, up $10 million from the prior half.

• Significant progress in the transition strategy, with a development pipeline growing to 11.3 GW and new renewable PPAs signed.

Financial highlights

• Revenue was $7,044 million, down 0.9% year-over-year; gross margin was $1,969 million, down 1.6%.

• Operating free cash flow increased by $240 million to $314 million.

• Net debt increased to $3,249 million, mainly due to growth investments and dividend payments; liquidity remains strong at nearly $1.2 billion.

• Fully franked interim dividend of 24 cents per share declared, up from 23 cents, targeting a 50%-75% payout ratio.

• Battery portfolio contributed $35 million EBITDA, up $10 million from the prior half.

Outlook and guidance

• FY26 guidance narrowed: Underlying EBITDA $2,020–$2,180 million; Underlying NPAT $580–$680 million.

• Full-year operating costs expected to be lower than previously indicated; depreciation forecast revised down by $40 million.

• Targeting $50 million in sustainable net operating cost reductions in FY27.

• Earnings expected to remain skewed to the first half due to seasonality and contract roll-offs.