APA Group (APA) H2 2025 earnings summary

Executive summary

• Underlying EBITDA grew 6.4% to $2,015 million, reaching the top end of guidance, driven by robust asset performance, inflation-linked tariff escalation, and cost discipline.

• Distribution per security increased to 57.0 cps (AUD 0.57), with FY26 guidance at 58.0 cps (AUD 0.58), marking 22 consecutive years of growth.

• Business simplification included divesting the non-core networks business, refining electricity transmission strategy, and exiting large East Coast electricity transmission projects.

• Organic growth pipeline increased to ~$2.1 billion, fully fundable from the existing balance sheet and DRP.

• All FY25 commitments under the Climate Transition Plan were met, with significant emissions reductions and reaffirmed 2030 and 2050 targets.

Financial highlights

• Underlying EBITDA up 6.4% year-over-year to $2,015 million, with margin expanding to 74.2%.

• Free cash flow rose 0.9% to $1,083 million, despite higher interest and tax payments.

• Net profit after tax (excluding significant items) increased 8.4% to $129 million.

• Segment revenue increased 5.2% to $2,716 million.

• Capex totaled $964 million, with $655 million in growth projects.

Outlook and guidance

• FY26 underlying EBITDA guidance is $2,120–$2,200 million, a 7.2% increase at the midpoint.

• Distribution guidance for FY26 is 58.0 cps (AUD 0.58) per security.

• Cost-out target of $50 million for FY26, with further savings expected in FY27.

• Organic growth capex pipeline of ~$2.1 billion for FY26–28, funded by balance sheet and DRP.

• Basslink earnings expected to be volatile until regulated status is finalized.