FY26 results deliver EBITDA above guidance and 22nd year of distribution growth
APA Group (ASX: APA) delivered strong full-year results for the year ended 30 June 2026, with Underlying EBITDA up 8.3% to $2,183 million (FY25: $2,015 million), exceeding the mid-point of guidance.
The energy infrastructure operator recorded $80 million in cost-out initiatives, comfortably ahead of its $50 million target. The result marked the 22nd consecutive year of distribution growth and coincided with a new final investment decision on the Sybella Creek Solar Farm and Battery Energy Storage System. Management pointed to continued momentum toward a ~$3.5 billion FY27–FY29 organic growth pipeline.
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FY26 financial results at a glance
The headline metrics showed earnings growth across EBITDA, free cash flow, distributions and statutory profit.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Underlying EBITDA | $2,183m | $2,015m | +8.3% |
| Underlying EBITDA margin | 77.9% | — | +370bps |
| Free Cash Flow | $1,118m | $1,083m | +3.2% |
| Statutory revenue (ex pass-through) | $2,764m | $2,713m | +1.9% |
| Statutory NPAT | $234m | $129m | +81.4% |
| Distribution per security | 58.0 cps | 57.0 cps | +1.8% |
The result was driven by inflation-linked tariff escalation, contributions from newly commissioned assets, and enterprise-wide cost reduction. Statutory net profit after tax rose sharply, increasing 81.4% to $234 million from $129 million in FY25.
Cost-out delivery and margin expansion
APA exceeded its own cost target during the year, delivering $80 million in cost-out initiatives against a $50 million goal. This included a 20.6% reduction in corporate costs, with the company expecting an annualised run-rate of $100 million in FY27.
The cost discipline supported margin expansion, with Underlying EBITDA margins increasing to 77.9% (+370bps), reflecting both enterprise-wide cost reductions and robust asset performance across the portfolio.
Business simplification measures over the year included:
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Networks and GDI divestments
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Operating model and corporate function restructure
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Reduced external spend
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Streamlined IT project delivery and lifecycle management
New investment: Sybella Creek Solar Farm and Battery
APA announced a final investment decision to construct, own and operate the Sybella Creek Solar Farm and Battery Energy Storage System in Mount Isa, Queensland. The project is to be underpinned by a long-term Energy Supply Agreement with Evolution Mining.
Forming part of APA’s remote grid growth strategy, the development is expected to be value and free cash flow accretive, diversify the company’s customer base in Mount Isa, and support the delivery of greater efficiencies from the operation of the Diamantina Power Facility.
Adam Watson, CEO and Managing Director
“There is significant momentum with our growth strategy for the benefit of our customers, communities and securityholders. This is underpinned by strong demand for new energy infrastructure and confidence in the role of gas to support industry and provide grid stability for Australia’s electricity networks.”
Understanding APA’s growth pipeline
An organic growth pipeline refers to earnings expansion generated by building or expanding assets internally, rather than through acquisition, creating new contracted cash flows over time. For an infrastructure operator, this typically means constructing new pipelines, power facilities or storage assets that generate long-term, contracted revenue.
APA’s pipeline increased to ~$3.5 billion (up from $3.0 billion) for FY27–FY29. The company noted it has the capacity to fund this investment from its existing balance sheet and Distribution Reinvestment Plan (DRP), meaning growth can be pursued while maintaining investment-grade credit ratings.
Beyond this pipeline, APA continues to progress a number of longer-term growth opportunities:
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Beetaloo gas transmission pipelines
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Contracted gas-powered generation
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Remote grid power generation
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Integrated energy solutions for the data centre industry
Distributions and balance sheet strength
The Board resolved to pay a final FY26 distribution of 30.5 cps, bringing total distributions for the year to 58.0 cps, a 1.8% increase on FY25 and the 22nd consecutive year of growth. The final distribution is expected to be paid on 16 September 2026, with the DRP operating at a 1.5% discount.
The 30.5 cps final distribution comprised:
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A fully franked profit distribution of 9.6 cps and a capital distribution of 15.3 cps from APA Infrastructure Trust
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An unfranked profit distribution of 0.9 cps and a capital distribution of 4.7 cps from APA Investment Trust
On the balance sheet, APA completed a $1.5 billion hybrid and senior unsecured debt raise. The company also received favourable ratings downdriver modifications from S&P Global and Moody’s Ratings, reducing APA’s Funds From Operations to Net Debt threshold.
The APA Group debt raise, completed in April 2026 and nearly four times oversubscribed, comprised $1 billion in hybrid subordinated capital securities and $500 million in senior unsecured notes, with institutional demand reflecting the market’s confidence in APA’s long-dated contracted cash flows.
The Moody’s ratings threshold modification, which lowered APA’s downside FFO/Debt floor from 8% to 7% in April 2026, mirrored S&P’s earlier action and gave APA dual agency alignment, materially expanding the debt headroom available to fund the organic growth pipeline without issuing new equity.
FY27 outlook
APA provided FY27 Underlying EBITDA guidance of $2,260m–$2,340m, representing midpoint growth of 5.4% on FY26. The guidance is supported by inflation-linked tariff escalation, a contribution from the new Sturt Plateau Pipeline, the conversion of Basslink to a regulated asset, and the annualised benefit of the enterprise-wide cost reduction initiatives.
FY27 distributions are expected to be 59.0 cps, an increase of 1.0 cps (+1.7%) on FY26. The company noted its distribution guidance balances the need to fund the organic growth pipeline while maintaining its investment-grade credit ratings.
Management framed the outlook around disciplined capital allocation toward the highest-return opportunities for the creation of long-term securityholder value, positioning the group as “Australia’s energy infrastructure partner.”
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