AGL Energy (ASX:AGL): FY26 Earnings, Liddell Battery and FY27 Guidance Range

Aditi Sarkar

23 October 2026 12:29 AM AEDT

AGL Energy (ASX:AGL): FY26 Earnings, Liddell Battery and FY27 Guidance Range

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Highlights

AGL Energy (ASX:AGL) reported FY26 underlying EBITDA of A$2,100m, up 2%, and statutory net profit after tax of A$756m.
The total FY26 dividend was 50 cents per share fully franked, including a 26 cent final dividend.
The 500 MW Liddell Battery began operating in July 2026, while the Tomago Battery and Kwinana gas project are under construction.
FY27 guidance is underlying EBITDA of A$1,900m to A$2,200m and underlying net profit after tax of A$470m to A$670m.

AGL Energy Limited supplies electricity, gas and related services to residential, small business and enterprise customers in New South Wales, Victoria, Queensland, South Australia and Western Australia, and operates a fleet that spans coal, gas, hydro, wind and batteries. Its latest disclosures cover results for the year ended 30 June 2026, a pipeline of firming projects and FY27 guidance.

Company Business

AGL Energy (ASX:AGL) describes its aim as becoming a multi-product retailer that helps customers electrify and decarbonise how they live, move and work. Its retail offering includes electricity and gas, solar and batteries, electric vehicle services and moving services.

The group operates coal-fired generation alongside wind, hydro, gas, gas storage and battery assets. Flexible fleet capacity was 8.7 GW and customer services totalled 4.6 million, up 92,000 over the year. A target of 6 GW of renewable and firming capacity by 2030 is in place.

Recent Development

In August 2026, AGL Energy (ASX:AGL) released its FY26 results alongside an update on portfolio activity. The 500 MW, 1,000 MWh Liddell Battery became operational in July 2026 at an estimated cost of A$750m. The 500 MW Tomago Battery (A$800m) is under construction with operation targeted for late 2027, and construction has begun on the 220 MW Kwinana Swift Gas 2 project in Western Australia (A$490m).

Portfolio changes included the sale of AGL's 19.9% interest in Tilt Renewables for A$750m before transaction costs, and the divestment of its telecommunications business to Aussie Broadband for about A$115m, paid in Aussie Broadband shares. AGL also signed 15-year power purchase agreements for the Palmer and Waddi wind farms, and is in talks with capital partners on a wind portfolio of more than 2 GW.

The company also extended the delivery timeline of its Retail Transformation program by up to 12 months, with an additional cost of A$100m to A$150m. Annual pre-tax savings of A$70m to A$90m remain expected, with full benefits now anticipated from FY30.

Financial Performance and Sector Context

For FY26, AGL Energy (ASX:AGL) reported underlying EBITDA of A$2,100m, up 2% and in line with guidance, and underlying net profit after tax of A$631m, down 2%. Statutory net profit after tax was A$756m, compared with A$112m in the prior corresponding period. Statutory results included a post-tax gain of A$268m on the Tilt Renewables sale and asset impairments of A$227m.

Operating free cash flow was A$850m, an increase of A$319m, with cash conversion of 97% excluding certain items. Net debt was about A$2.86bn and liquidity was A$1,551m in cash and undrawn committed facilities. Customer Markets EBITDA rose 32% to A$392m, while total generation fell 3% to 31,773 GWh.

The total dividend was 50 cents per share fully franked, a payout of 53.3% of underlying net profit after tax; the 26 cent final dividend was paid in late September 2026. The FY27 payout target is 55% to 60% of underlying profit. Guidance for FY27 is underlying EBITDA of A$1,900m to A$2,200m and underlying net profit after tax of A$470m to A$670m, with growth capital expenditure of about A$800m.

The outlook references stable consumer margins, a full year of Liddell Battery earnings and lower operating costs, partly offset by lower wholesale prices and higher gas costs as legacy contracts roll off.

Risks to Consider

AGL Energy (ASX:AGL) has stated that guidance is subject to regulatory and government intervention, trading conditions and plant availability. Falling wholesale electricity prices and low price volatility can affect generation earnings, while rising gas costs as lower-cost contracts expire may affect margins. Retail Transformation overruns, impairments, margin calls, inflation and customer-market competition are also identified.

What to Watch Next

Upcoming milestones include the progress of the Tomago Battery toward late 2027 operation, construction of the Kwinana gas project, and the targeted operation of the Palmer and Waddi wind farms in 2028. Capital partner discussions on the wind portfolio and the A$50m net operating cost reduction target for FY27 are further reference points, as is half-year reporting for the period to December 2026.

Key Insights

AGL Energy (ASX:AGL) closed FY26 with slightly higher underlying EBITDA, lower underlying profit, a higher statutory profit driven by portfolio gains, and a 50 cent dividend. The company commissioned its Liddell Battery, advanced further firming and renewable projects, and set a wide guidance range for FY27. Wholesale prices, gas costs and project delivery remain the main variables for AGL Energy (ASX:AGL).

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