APA Group (APA) H1 2026 earnings summary

Executive summary

• Delivered strong 1H26 results with underlying EBITDA up 7.6% to $1,092 million, driven by new assets, inflation-linked tariffs, and cost reduction initiatives, with margin expansion to 77.3%.

• Free cash flow increased 0.7% to $556 million, supported by higher earnings but offset by higher funding costs, tax payments, and one-off working capital impacts.

• Distribution per security grew 1.9% to 27.5 cents, with FY26 guidance reaffirmed at 58.0 cents per security.

• Organic growth pipeline for FY26–FY28 increased from $2.1 billion to ~$3 billion, underpinned by major gas and power projects and supported by strong balance sheet and funding flexibility.

• Enterprise-wide cost reduction initiatives delivered a 13.6% reduction in corporate costs, progressing toward a $50 million FY26 target.

Financial highlights

• Segment revenue up 3.6% year-over-year to $1,412 million, with underlying EBITDA margin expanding by 280bps to 77.3%.

• Statutory net profit after tax increased to $95 million, up 179.4% year-over-year, reflecting EBITDA growth and lower net finance costs.

• Free cash flow per security was 42.3 cents; distribution payout ratio at 65.0%.

• Total assets decreased 3.9% to $19,162 million, while total equity increased 3.9% to $2,772 million.

• Total capex for 1H26 was $407 million, with growth capex at $265 million.

Outlook and guidance

• FY26 underlying EBITDA guidance reaffirmed at $2,120–$2,200 million, with expectations to exceed the midpoint.

• FY26 distribution per security guidance reaffirmed at 58.0 cents, a 1.8% increase year-over-year.

• Organic growth capex pipeline for FY26–FY28 raised to ~$3 billion, up from ~$2.1 billion.

• Free cash flow for FY26 expected broadly in line with FY25, as higher interest and tax offset EBITDA growth.

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