Key highlights

  • APA reported underlying EBITDA up 8.3% to $2,183 million for FY26 in its 20 August 2026 announcement.
  • The FY26 distribution was 58.0 cents per security, up 1.8%, the 22nd consecutive annual increase.
  • The company outlined a $3.5 billion organic growth pipeline for FY27 to FY29, including a final Investment decision on the Sybella Creek solar and battery project.

APA Group (ASX:APA) announced its financial results for the year ended 30 June 2026 on 20 August 2026. The release covered Earnings growth, cost reductions, distributions and a pipeline of growth projects across gas, power and renewables.

About APA Group

APA owns and operates gas pipelines and related energy infrastructure across Australia, including the East Coast Gas Grid, and also has gas processing, power generation and renewable energy assets. Its stapled securities are quoted on the ASX alongside APA Infrastructure Limited.

FY26 earnings and cash flow

Underlying EBITDA rose 8.3% to $2,183 million from $2,015 million, above the midpoint of guidance. The company attributed the increase to inflation-linked Tariff escalation, newly commissioned Assets and $80 million of cost-out initiatives, ahead of a $50 million target. The EBITDA Margin increased to 77.9%, up 370 basis points.

Free Cash Flow rose 3.2% to $1,118 million. Total statutory Revenue excluding pass-through revenue rose 1.9% to $2,764 million, and statutory net profit after tax increased 81.4% to $234 million from $129 million.

Cost-out program and distributions

The cost reductions included a 20.6% reduction in corporate costs, and the company expects an annualised run-rate of $100 million in FY27. The FY26 distribution was 58.0 cents per security, up 1.8% from 57.0 cents and in line with guidance, marking the 22nd consecutive year of increased distributions.

Growth projects

The company announced a final investment decision to build, own and operate the Sybella Creek Solar Farm and Battery Energy Storage System in Mount Isa, Queensland, underpinned by a long-term energy Supply agreement with Evolution Mining. Other projects include an expansion of the East Coast Gas Grid, an expansion of the South West Pipeline, agreements with CS Energy for the Brigalow Peaking Power Plant and a lateral pipeline, and the completed construction of the Sturt Plateau Pipeline, its first project in the Beetaloo Basin.

APA said its Balance Sheet supports funding of the roughly $3.5 billion FY27-FY29 organic growth pipeline while maintaining distribution growth and supporting Credit metrics.

Risks to consider

Projects in the pipeline need to be built on time and on budget, and expansions depend on customer contracts and regulatory processes. The company noted it will allocate Capital selectively.

Earnings include inflation-linked tariffs and Demand for gas, which can be influenced by energy policy and market conditions. Funding a $3.5 billion pipeline may require Debt or other capital, and distribution growth is linked to credit metrics.

Catalysts to watch

Items to watch include construction progress at Sybella Creek, the Brigalow Peaking Power Plant and the pipeline expansions, the $100 million annualised cost run-rate in FY27, further distribution growth, and additional detail in the investor presentation released on 20 August 2026.