This morning, AGL Energy Ltd (ASX: AGL) reported a statutory profit after tax of $94 million for the first half of FY26 and declared a fully franked interim dividend of 24 cents per share.
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What did AGL Energy report?
- Statutory profit after tax: $94 million (includes $143 million loss in the fair value of financial instruments and $116 million significant items)
- Underlying EBITDA: $1,092 million (flat compared to 1H25)
- Underlying net profit after tax: $353 million, down 6% on 1H25
- Interim fully franked dividend: 24 cents per share
- 4.7 million total customer services, up 108,000 since FY25
- FY26 earnings guidance narrowed: underlying EBITDA of $2,020–$2,180 million; underlying NPAT of $580–$680 million
What else do investors need to know?
AGL's retail transformation program is progressing, with key capabilities deployed and committed benefits on track. The company also grew its development pipeline to 11.3 GW, signing new long-term power purchase agreements for wind farms in South Australia and Western Australia.
The 500 MW Tomago Battery project in New South Wales has begun construction, while the Liddell Battery's first 250 MW is targeted to be operational in the third quarter. AGL has also struck a deal to divest its telecommunications business to Aussie Broadband Ltd (ASX: ABB) , with migration of customers planned for FY27 and an expected $115 million investment in ABB shares.
What did AGL Energy management say?
AGL Managing Director and CEO Damien Nicks, said:
The strength of our first half result was delivered by our excellent operational performance. In Customer Markets we saw an improvement in customer margins, driven by growth in our customer base and a return to more sustainable margins.
What's next for AGL Energy?
AGL has narrowed FY26 earnings guidance and is targeting $50 million in sustainable net operating cost reductions in FY27. Focus areas for the remainder of the year include continued delivery of the retail transformation, advancing renewable and storage projects, and careful cost management.
The company expects second-half earnings to be seasonally lower due to customer demand patterns and legacy contract changes. All guidance remains subject to regulatory and operational factors.
AGL Energy share price snapshot
Over the past 12 months, AGL Energy shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
