APA FY26 Underlying EBITDA $2.18b, Up 8.3% on FY25

APA Group (ASX:APA) reported FY26 underlying EBITDA of $2,183 million, up 8.3 per cent on FY25's $2,015 million and above the mid-point of guidance. APA attributed the increase to inflation-linked tariff escalation, contributions from newly commissioned assets and $80 million of enterprise-wide cost reduction initiatives against a $50 million target, including a 20.6 per cent reduction in corporate costs, with an annualised run-rate of $100 million expected in FY27. Underlying EBITDA margin increased 370 basis points to 77.9 per cent; the release does not state the revenue base on which that margin is struck. Total statutory revenue excluding pass-through revenue rose 1.9 per cent to $2,764 million. Statutory net profit after tax increased 81.4 per cent to $234 million from $129 million. Free cash flow, which APA defines as operating cash flow adjusted for certain non-operating items and stay-in-business capital expenditure, rose 3.2 per cent to $1,118 million, which the company said was underpinned by strong operating cash flow offsetting higher tax and interest costs.

The Board resolved to pay a final distribution of 30.5 cents per security, taking total FY26 distributions to 58.0 cents, up 1.8 per cent on FY25's 57.0 cents and in line with guidance. The final distribution comprises a fully franked profit distribution of 9.6 cents and a capital distribution of 15.3 cents from APA Infrastructure Trust, and an unfranked profit distribution of 0.9 cents and a capital distribution of 4.7 cents from APA Investment Trust, and is expected to be paid on 16 September 2026. APA invested $546 million in growth projects during the year, including the Brigalow Peaking Power Plant and Brigalow Pipeline, the East Coast Gas Grid expansion and the Sturt Plateau Pipeline, and lifted its organic growth development pipeline to about $3.5 billion from $3.0 billion. The company also announced a final investment decision to construct, own and operate the Sybella Creek Solar Farm and Battery Energy Storage System at Mount Isa in Queensland, to be underpinned by a long-term energy supply agreement with Evolution Mining. For FY27, APA guided to underlying EBITDA of $2,260 million to $2,340 million, representing growth of 5.4 per cent at the mid-point, and distributions of 59.0 cents per security, an increase of 1.7 per cent; the release states that guidance is subject to asset performance, macroeconomic factors and regulatory changes and does not take into account any acquisitions or divestments.