Key Highlights

  • AGL Energy reported FY26 underlying EBITDA of $2.1 billion, broadly consistent with its previous guidance and 2% above the prior year.
  • Statutory profit after tax increased to $756 million, while underlying net profit after tax was $631 million.
  • The company declared a fully franked final Dividend of 26 cents per share, taking the FY26 total dividend to 50 cents per share.
  • AGL is progressing battery, gas and renewable energy projects while targeting further operating cost reductions during FY27.

AGL Energy (ASX:AGL) reported a statutory profit after tax of $756 million for the twelve months ended 30 June 2026, compared with $112 million in FY25. The result included several significant items, including a post-tax gain from the divestment of AGL’s interest in Tilt Renewables and movements in the Fair Value of financial instruments.

Underlying EBITDA reached $2.1 billion, representing a 2% increase from FY25 and remaining within the company’s previously stated guidance. Underlying net profit after tax was $631 million, 2% below the previous financial year.

The underlying result excludes fair-value movements in financial instruments and significant items. AGL said statutory profit also reflected gains associated with the Tilt Renewables transaction and contract revaluations, partly offset by asset Impairment charges and costs associated with its retail transformation program.

Cash Generation and Capital Position

Underlying cash from Operating Activities before significant items, interest and tax was $1.693 billion, an increase of $110 million compared with FY25. The movement was attributed in part to the unwinding of a prior-year bill-relief prepayment and higher underlying EBITDA, while higher margin calls partly reduced the benefit.

At the end of June, AGL held $1.551 billion of cash and undrawn committed Debt facilities. The company continued to allocate capital toward projects including the Tomago Battery and Kwinana Swift Gas 2 development.

AGL declared a final fully Franked Dividend of 26 cents per share. Combined with the interim distribution, the FY26 dividend reached 50 cents per share, equivalent to a Payout Ratio of 53.3% of underlying net profit after tax. The final payment is scheduled for 24 September 2026.

Generation Portfolio and Energy Infrastructure

AGL's operational portfolio underwent further changes during FY26 as the company continued developing flexible generation and storage capacity. Fleet equivalent availability increased to 83.4%, while total generation volumes declined 3.4% to 31.8 TWh.

Flexible fleet capacity reached 8.7 GW. The Liddell Battery became operational during the year, while construction of the Tomago Battery continued alongside the securing of a Long-Term Energy Service Agreement.

Construction also commenced on the 220 MW Kwinana Swift Gas 2 Project in Western Australia. In renewable energy, AGL signed 15-year power purchase agreements for the Palmer Wind Farm and Waddi Wind Farm.

The company also completed the sale of its 19.9% interest in Tilt Renewables for $750 million and is progressing an Investment Partnership focused on developing a wind portfolio exceeding 2 GW.

Customer Operations and Portfolio Development

AGL reported 4.6 million customer services at year-end, an increase of 92,000 from FY25. Customer satisfaction increased to 84.1 from 81.6 in the previous year.

The company also reported progress across its technology and service operations. Kaluza expanded its international presence through a global agreement with ENGIE, while AGL divested its telecommunications Business and established a long-term strategic partnership with Aussie Broadband.

The company contracted more than 65 petajoules of medium-term gas Supply and 2.9 million tonnes of coal during FY26, supporting its future fuel requirements across the generation portfolio.

FY27 Guidance and Cost Reduction

For FY27, AGL expects underlying EBITDA to fall within a range of $1.9 billion to $2.2 billion, while underlying net profit after tax is forecast between $470 million and $670 million.

The outlook incorporates stable consumer energy margins, a full year of contribution from the Liddell Battery and lower operating costs. AGL also expects lower wholesale electricity prices to flow through contracted positions, although its hedging arrangements and flexible generation fleet provide exposure to contracted prices above current market levels.

At the same time, the company expects higher gas costs as legacy lower-cost contracts expire. Depreciation and Amortisation is expected to increase by approximately $50 million, while finance costs are projected to decline by around $30 million.

AGL is targeting $50 million of sustainable net Operating Expense reductions by FY27, with $30 million already achieved during FY26.

Conclusion

AGL Energy enters FY27 with Earnings guidance reflecting a combination of lower wholesale electricity prices, changing fuel costs, additional battery earnings and planned operating cost reductions. The company is continuing to redirect capital toward flexible generation, energy storage and renewable power arrangements while maintaining its existing generation portfolio. Its FY26 result also included proceeds from the Tilt Renewables divestment, while the FY27 outlook points to a wider potential range of earnings as market conditions and operating costs evolve.