AGL shares lifting off on improved $2.1 billion full year earnings expectations

AGL provided updated earnings and profit guidance and a look into its $2 billion in growth projects at the Macquarie Conference today.

AGL Energy Ltd (ASX: AGL) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $9.43. In late morning trade on Wednesday, shares are swapping hands for $9.55 apiece, up 1.3%.

For some context, the ASX 200 is up 0.9% at this same time.

AGL shares are in focus today following the company's presentation at the annual Macquarie Group Ltd (ASX: MQG) Conference.

Here's what investors are tuning into.

red arrow representing a rise of the share price with a man wearing a cape holding it at the top

Image source: Getty Images

AGL shares gain on improved FY 2026 guidance

The core takeaway from the Macquarie conference was AGL's amended full year FY 2026 profit and guidance range.

Management now expects FY 2026 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to be between $2.06 billion and $2.18 billion, giving investors a tighter and improved range from prior guidance of $2.02 billion to $2.18 billion.

On the profit front, AGL forecasts full year underlying net profit after tax (NPAT) will be between $610 million and $680 million. That's also a narrowed and improved range from prior NPAT guidance of between $580 million and $680 million.

The company said its narrowed and improved FY 2026 profit and earnings guidance reflects "the continued strong operational and financial performance of the business since the half year results". That includes improved plant availability, stabilisation of consumer margins and disciplined cost management.

AGL shares could also be supported over the medium term, with the company noting that it is well placed for at least the next three months of the global fuel crisis. The ASX 200 energy stock said its current diesel storage is near capacity for its power generation assets, and it expects ongoing supply as an essential services provider.

What did management say?

Looking to what could boost AGL shares over the longer-term, CEO Damien Nicks pointed to the $2 billion dollars of projects the company currently has underway.

According to Nicks:

We've commenced commissioning on the first 250-megawatt tranche of the Liddell Battery in New South Wales, and the full 500 megawatts is expected to be operational by the end of this financial year.

Construction of the 500-megawatt Tomago Battery is progressing well, and we've also taken a final investment decision on the K2 project – further expanding the breadth and capacity of our flexible asset portfolio through a 220-megawatt, fast start gas peaker in Western Australia.

Nicks added, "The approximately $750 million proceeds from the sale of our 19.9% interest in Tilt Renewables are also expected to be received by 31 May."

Motley Fool contributor Bernd Struben 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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