The AGL Energy Ltd (ASX: AGL) share price is in focus after the company reported underlying EBITDA of $2,010 million, down 9%, and underlying net profit after tax (NPAT) of $640 million, down 21% for FY25. Despite the earnings drop, AGL declared a fully franked final dividend of 25 cents per share, and made significant investments in battery development and strategic projects.
What did AGL Energy report?
- Underlying EBITDA: $2,010 million, down 9% from FY24
- Underlying NPAT: $640 million, down 21% from FY24
- Statutory loss after tax: $(98) million, including significant items
- Operating free cash flow: $788 million, down 42%, reflecting increased tax paid and higher capex
- Final dividend: 25 cents per share, fully franked (total dividends of 48 cents for the year)
- Approximately $900 million deployed toward battery developments and strategic investments
What else happened in FY25?
AGL delivered strong customer growth, lifting total services to 4.56 million with notable gains in telecommunications and Netflix services. Customer satisfaction remained high at 81.6%, with a strategic Net Promoter Score of +8. The company successfully completed its two-year, $90 million Customer Support Package and launched AGL Community Power to broaden access to energy transition benefits.
Operationally, AGL faced lower coal plant availability due to planned and unplanned outages, but offset some impact by capturing higher price volatility through its flexible fleet. Investment in growth remained front and centre, highlighted by the acquisition of South Australia's Virtual Power Plant, final investment decisions on major battery projects, and strategic moves in renewable energy and firming assets.
What did AGL Energy management say?
Commenting on the result, Damien Nicks, Managing Director and CEO said:
Importantly, we continue to deliver for our customers. Amidst a year of heightened market activity, we increased our already strong customer satisfaction and continued to provide our customers with great products and services.
What's next for AGL Energy?
Looking ahead, AGL has set guidance for FY26 underlying EBITDA between $1,920 million and $2,220 million, and NPAT of $500 million to $700 million. The company expects plant availability and fleet flexibility to improve further, with the Liddell Battery coming online in early 2026 and ongoing investment in new flexible assets and customer growth initiatives.
AGL is targeting to offset upcoming earnings impacts from coal and gas re-contracting through increased contributions from batteries and other flexible energy assets. The company intends to maintain its fully franked dividend payout, though levels remain subject to board approval.
AGL Energy share price snapshot
Over the past 12 months, the AGL Energy shares have underperformed the S&P/ASX 200 Index (ASX: XJO). After falling 13% on this result, this gap has widened, with AGL shares down 18% over the past year, compared to the ASX 200 Index which is up 13%.
