APA Group (APA) H2 2025 earnings summary

Executive summary

• Underlying EBITDA grew 6.4% to $2,015m (over AUD 2 billion), reaching the top end of guidance, with margin expanding to 74.2%.

• 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 and refining electricity transmission strategy.

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

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

Financial highlights

• Segment revenue increased 5.2% year-over-year to $2,716m.

• Underlying EBITDA margin improved to 74.2%.

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

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

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

Outlook and guidance

• FY26 underlying EBITDA guidance is $2,120m–$2,200m, midpoint up 7.2% year-over-year.

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

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

• Organic growth capex pipeline of ~$2.1bn for FY26–28, fully funded.

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