APA Group (ASX:APA) shares climbed 3.4% to about $8.76 as of 4:30 pm AEST on Wednesday afternoon after the energy infrastructure company reported results at the top end of guidance, with strong asset performance and growth momentum across its portfolio.
Earnings and cash flow
Underlying earnings (EBITDA) rose 6.4% to $2.02 billion, supported by inflation-linked tariffs, a full year contribution from the Pilbara Energy System, and cost-reduction initiatives that lifted EBITDA margins to 74.2%. Statutory revenue increased 4.7% to $2.71 billion.
Free cash flow edged up to $1.08 billion, as higher earnings were partly offset by increased tax and interest costs. Statutory net profit fell to $129 million, reflecting the absence of last year’s $879 million non-cash gain; adjusting for that, profit was 8.4% higher.
Distributions grew modestly to 57 cents per security, with FY26 guidance set at 58 cents. The company also forecast EBITDA of $2.12 billion–2.20 billion for FY26, around 7% higher at the midpoint.
Growth pipeline and regulation
APA invested $655 million in projects over the year, including new pipelines and renewable energy assets, and lifted its organic growth pipeline to about $2.1 billion. Funding will come from the balance sheet and its dividend reinvestment plan.
Regulatory outcomes were also supportive, with the Australian Energy Regulator opting not to regulate the South West Queensland Pipeline and approving APA’s plan to convert Basslink into a regulated transmission asset from 2026.
APA chief executive Adam Watson said the result reflected “robust asset performance across the portfolio and ongoing momentum with our growth strategy”, adding that cost discipline remained a priority.