APA Group reported an 8.3% year-on-year rise in underlying EBITDA to a record level for FY2026, driven by cost reductions and asset sales. The company’s underlying EBITDA margin expanded by 370 basis points to 77.9%, while free cash flow increased 3.2% to just over A$1.1 billion.
Enterprise-wide cost reductions totaled A$80 million in FY2026, exceeding the A$50 million target by 60%. Corporate costs fell 20.6% as the company streamlined operations. The annualized cost savings run rate reached about A$100 million, with an incremental A$20 million expected in FY2027.
APA’s organic growth capital pipeline for FY2027 to FY2029 increased to approximately A$3.5 billion, up from the prior A$3 billion target. The company generated A$101 million in asset sale proceeds from the divestment of non-core Networks and GDI businesses.
FY2027 guidance includes underlying EBITDA of A$2.26 billion to A$2.34 billion, representing a 5.4% increase at the midpoint from FY2026. Distribution guidance was set at A$0.59 per security. The Sybella Solar and Battery Project in Mount Isa, supporting Evolution Mining’s Ernest Henry operations, is budgeted at A$259 million.
CEO Adam Watson described the results as another strong performance, highlighting a balance sheet capable of funding growth and maintaining credit metrics. CFO Garrick Rollason noted that cost reductions exceeded targets, attributing the savings to foundational investments over the past three years.
APA’s stock was last up 0.79% at $10.18 after closing at $10.10, within a 52-week range of $8.445 to $11.10. The company’s financial health score stood at 3.37 out of 5 on InvestingPro.
