The AGL Energy Limited (ASX: AGL) share price is in focus today after the company delivered strong FY26 results, with underlying EBITDA rising 2% to $2,100 million and operating free cash flow jumping 60% to $850 million.
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What did AGL Energy report?
- Underlying EBITDA: $2,100 million, up 2% on FY25
- Underlying NPAT: $631 million, down 2% on FY25
- Statutory profit after tax: $756 million
- Operating free cash flow: $850 million, up 60%
- Final dividend: 26 cents per share (fully franked), total FY26 dividend 50 cps
- Dividend payout ratio: 53.3% of underlying NPAT
What else do investors need to know?
AGL grew its customer base by 92,000 services to 4.57 million, boosted by the Ampol Energy acquisition and strong organic growth in energy services. Customer satisfaction hit 84.1%, and decentralised assets under orchestration grew by 250 MW to 1.74 GW.
The company invested more than $600 million in firming projects, including the Liddell and Tomago batteries. Major milestones included the Liddell Battery becoming operational, new gas peaker and wind farm projects, and two long-term power purchase agreements.
AGL also completed the divestment of its stake in Tilt Renewables and exited the telco business, boosting its balance sheet and allowing stronger focus on core energy operations.
What did AGL Energy management say?
AGL's CEO, Damien Nicks, commented:
Overall, EBITDA was two percent higher and Underlying Net Profit marginally lower due to an anticipated increase in depreciation and amortisation, reflecting the continued investment in the availability, flexibility and growth of our asset portfolio, coupled with higher finance costs.
What's next for AGL Energy?
Looking ahead, AGL provided FY27 guidance for underlying EBITDA between $1.9–$2.2 billion and underlying NPAT between $470–$670 million. The dividend payout ratio is targeted to lift to 55–60%, expected to be fully franked.
AGL's strategy is to continue disciplined investment in flexible, low-emissions assets and expand its renewable energy and storage pipeline. Retail transformation and customer innovation remain priorities while the company seeks to capture durable long-term demand growth from electrification and new data centre developments.
AGL Energy share price snapshot
The AGL Energy share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 20%.
