APA Group lifts earnings and growth outlook for 1H26

The APA Group (ASX: APA) share price is in focus today after the company posted a 7.6% jump in underlying EBITDA to $1,092 million and lifted its organic growth pipeline for the first half of FY26.

What did APA Group report?

• Total statutory revenue (excluding pass-through) rose 2.0% to $1,391 million
• Underlying EBITDA increased 7.6% to $1,092 million, with margins up to 77.3%
• Statutory net profit after tax climbed to $95 million, up from $34 million last year
• Free cash flow edged up 0.7% to $556 million
• Interim distribution lifted 1.9% to 27.5 cents per security, payable 18 March 2026
• FY26 Underlying EBITDA guidance unchanged at $2,120–$2,200 million, with expectation to exceed midpoint

What else do investors need to know?

APA Group reaffirmed its FY26 distribution guidance at 58 cents per security, up 1.8% on FY25. The company is also on track to achieve $50 million in full-year cost savings, helped by simplification efforts including the sale of its Networks business and pending divestment of its GDI stake.

APA’s organic growth pipeline for FY26–FY28 has been upgraded from $2.1 billion to around $3 billion, driven by new projects such as expanding the East Coast Gas Grid and collaboration with CS Energy on the Brigalow Peaking Power Plant. A recent S&P rating adjustment has further strengthened balance sheet capacity, increasing potential funding for growth.

What did APA Group management say?

CEO and Managing Director Adam Watson said:

APA has delivered another strong half year operational and financial result, as we continue to deliver our commitments and create value for our securityholders… Today’s result demonstrates that APA is delivering on commitments, while simultaneously positioning the business to play a central role in the energy transition.

What’s next for APA Group?

APA Group expects to exceed the midpoint of its full-year underlying EBITDA guidance range, and management is sticking with its distribution forecast. Ongoing cost reductions and simplification are set to improve margins, while a larger growth pipeline and strong credit profile should support further investment in gas, power, and renewables infrastructure.

Projects in development include the next stage of the East Coast Gas Grid Expansion Plan and partnerships in renewable energy, positioning APA for continued strategic growth as the energy transition accelerates.

APA Group share price snapshot

Over the past 12 months, APA Group shares have risen 39%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

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The post APA Group lifts earnings and growth outlook for 1H26 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.