APA Group reported a record underlying EBITDA of $2.18 billion for the year ended June 30, 2026, up 8.3% from the prior year and exceeding the midpoint of guidance. The result reflected a 370-basis-point expansion in EBITDA margin to 77.9%, driven by inflation-linked tariff escalation, new assets and cost-reduction initiatives that generated $80 million in savings—exceeding the $50 million target.
The company’s organic growth pipeline was increased to approximately $3.5 billion for FY27–FY29, up from $3.0 billion previously. Free cash flow rose 3.2% to $1.12 billion, while distributions increased by 1 cent to 58.0 cents per security, marking the 22nd consecutive year of payout growth. The distribution yield stands at roughly 5.9%.
APA’s cost-reduction program delivered annualized run-rate savings of $100 million by FY27, with corporate costs declining 20.6%. Divestment proceeds from the Networks business and GDI interest totaled $101 million. The Stage 3A compression project progressed with a $260 million investment, while the Stage 3B Bulloo Interlink Pipeline, with an estimated cost of $800 million, awaits a final investment decision later this year.
The company’s FFO/Net Debt ratio stood at 11.2% as of June 30, 2026, supported by $3.1 billion in liquidity from cash and undrawn facilities. APA issued $1.5 billion in debt in April, including $1 billion in hybrid subordinated capital securities and $500 million in senior 10-year notes, to fund growth and distributions.
Guidance for FY27 includes underlying EBITDA of $2.26 billion to $2.34 billion, a 5.4% increase at the midpoint, and a distribution of 59.0 cents per security. The portfolio, valued at over $20 billion, spans gas, electricity and renewable assets, with 90% of revenues linked to inflation-adjusted tariffs. The National Electricity Market is forecast to require 17 gigawatts of gas-powered generation capacity by 2050, according to AEMO projections.
APA’s operational footprint includes more than 15,000 km of gas pipelines, 342 MW of wind and 356 MW of solar generation, alongside 75 MW of battery storage. The company reported zero serious harm incidents and a total recordable injury frequency rate of 2.3, while gross emissions from gas infrastructure fell 20.8% relative to FY21.
Chief Executive Adam Watson described the FY26 result as "another very strong result," citing a "strong balance sheet with the capacity to fund growth and distributions." Chief Financial Officer Garrick Rollason noted that cost reductions of $80 million "exceeded our target of $50 million" and that the underlying EBITDA margin increase reflected disciplined execution.
