AGL FY26 Statutory Profit $756m, Underlying NPAT $631m

AGL Energy Limited (ASX:AGL) announced its results for the twelve months ended 30 June 2026, reporting statutory profit after tax of $756 million, up $644 million from FY25, underlying EBITDA of $2,100 million, up 2% and in line with guidance, and underlying net profit after tax of $631 million, down 2% and in line with guidance. The statutory result included a $268 million post-tax gain on the divestment of AGL's 19.9% equity interest in Tilt Renewables, a positive post-tax movement in the fair value of financial instruments of $179 million and a $67 million post-tax gain from the revaluation of onerous contracts, partly offset by $227 million of post-tax charges for asset impairments recognised on the generation fleet and development projects and $69 million of post-tax Retail Transformation costs. A fully franked final dividend of 26 cents per share was declared, taking the FY26 total to 50 cents per share fully franked, a payout ratio of 53.3% of underlying net profit after tax. Underlying cash from operating activities before significant items, interest and tax was $1,693 million, $110 million higher than FY25, and AGL had $1,551 million of cash and undrawn committed debt facilities at 30 June 2026. Total customer services were 4.6 million as at 30 June 2026, up 92,000 on FY25 and excluding approximately 298,000 services to ActewAGL customers and Netflix services, customer satisfaction increased to 84.1 from 81.6, fleet equivalent availability factor rose 4.3 percentage points to 83.4% and total generation volumes were 31.8 TWh, down 3.4%.

AGL said its Retail Transformation Program has deployed key capabilities and delivered $25 million of savings ahead of plan, but that following a detailed review of the next phase of implementation it now expects the program to extend by up to 12 months and costs to increase by an additional $100 million to $150 million. The company said the anticipated strategic and operational benefits remain unchanged, including expected annual pre-tax cash savings of $70-90 million, however with full benefits now expected from FY30. AGL is targeting $50 million of sustainable net operating cost reductions by FY27, of which $30 million was delivered in FY26. For FY27, AGL guided to underlying EBITDA of between $1,900 million and $2,200 million and underlying net profit after tax of between $470 million and $670 million, and is targeting a dividend payout ratio of between 55% and 60% of underlying NPAT, expected to be fully franked. The company said the guidance ranges reflect stable consumer energy margins, a full year of earnings from the Liddell Battery, lower operating costs from the FY27 cost-out target, the impact of lower wholesale electricity prices rolling through contracted positions, although AGL said these remain at a premium to current market prices through its hedged position and flexible fleet, increased gas costs as low-cost legacy contracts roll off, an increase in depreciation and amortisation of approximately $50 million and a reduction in finance costs of approximately $30 million. All guidance is stated as subject to any impacts arising from regulatory and government intervention, variability in trading conditions and plant availability.