APA Group (APA) H1 2025 earnings summary

Executive summary

• Underlying EBITDA rose 9.1% to $1,015 million for 1H25, driven by new assets, higher customer demand, and inflation-linked tariff escalations.

• Free cash flow increased 3.6% to $552 million, supporting an interim distribution of 27.0 cents per security, up 1.9%.

• Statutory NPAT fell to $34 million, mainly due to higher net interest expense and the absence of prior period significant items, including a one-off gain from the Pilbara acquisition.

• The $1.8 billion organic growth pipeline for FY25–FY27 is fully funded by operating cash flow, DRP, and balance sheet capacity.

• FY25 distribution guidance reaffirmed at 57.0 cents per security and underlying EBITDA guidance at $1,960–$2,020 million.

Financial highlights

• Segment revenue (excluding pass-through) increased 7.2% year-over-year to $1,363 million.

• Underlying EBITDA margin improved to 74.5% (+1.3ppts), reflecting disciplined cost control.

• Net interest and finance costs rose 58.5% to $412 million, impacted by higher debt and FX losses.

• Depreciation and amortisation increased 9.4% to $476 million.

• Distribution per security up 1.9% to 27.0 cents; free cash flow per security was 42.6 cents.

Outlook and guidance

• FY25 distribution guidance reaffirmed at 57.0 cents per security, up 1.8% on FY24.

• Underlying EBITDA guidance for FY25 maintained at $1,960–$2,020 million.

• $1.8 billion organic growth pipeline expected to be funded internally over FY25–FY27.

• Revenues remain subject to customer recontracting, investment decisions, and regulatory frameworks amid ongoing market uncertainty.

• Expect to be fully contracted on key pipelines for winter 2025–2027.