APA Group Posts 6.4% EBITDA Rise and $2.1bn Growth Pipeline in FY25
APA Group reported a robust FY25 with underlying EBITDA rising 6.4% to $2.015 billion and distribution per security increasing by 1 cent to 57.0 cps, underpinned by resilient operations and strategic growth initiatives.
- 6.4% increase in underlying EBITDA to $2.015 billion
- Distribution per security up 1 cent to 57.0 cps
- Strong balance sheet with $12.6 billion net debt and $2.4 billion liquidity
- Progress on 2022 Climate Transition Plan with emissions reductions achieved
- FY26 guidance anticipates 7.2% EBITDA growth supported by new assets and cost savings
Robust Financial Performance
APA Group (ASX – APA) has released its financial results for the year ended 30 June 2025, showcasing solid growth across key metrics. The company reported underlying EBITDA of $2.015 billion, marking a 6.4% increase over the prior year, driven by inflation-linked tariff escalations, contributions from newly commissioned assets, and disciplined cost management. Distribution per security rose by 1 cent to 57.0 cents, continuing a long-standing trend of annual distribution growth since 2004.
Operational Resilience and Strategic Growth
APA demonstrated operational resilience during FY25, notably withstanding severe weather events such as Cyclone Zelia and floods in Queensland and New South Wales with minimal disruption. This resilience underscores the company’s investment in climate-adaptive infrastructure and emergency preparedness. On the growth front, APA is advancing a $2.1 billion organic capital expenditure pipeline for FY26-28, focused on expanding its East Coast Gas Grid, renewable energy projects like the Port Hedland Solar and Battery Energy System, and strategic acquisitions including the Atlas to Reedy Creek pipeline.
Balance Sheet Strength and Capital Management
The group maintains a strong balance sheet with net debt of $12.6 billion and liquidity of $2.4 billion, supporting its growth ambitions without immediate debt maturities until 2027. APA has proactively managed its debt profile, including a significant US144A bond issuance and early repayments, while maintaining investment-grade credit ratings. The company also continues its Distribution Reinvestment Plan, enhancing capital flexibility.
Climate Commitments and Energy Transition
APA reaffirmed its commitment to sustainability through progress on its 2022 Climate Transition Plan, achieving a 6.5% gross reduction in gas infrastructure emissions compared to FY21 and procuring 100% renewable electricity. The company aims for net zero operational emissions by 2050 and is integrating decarbonisation strategies across its portfolio, including renewable power generation and methane emissions abatement.
Outlook and Market Positioning
Looking ahead, APA projects FY26 underlying EBITDA growth of 7.2% at the midpoint of guidance, supported by new asset contributions, tariff escalations, and cost reduction initiatives targeting a $50 million uplift. The company is also progressing the divestment of its gas distribution operations and maintenance business, streamlining its focus on core energy infrastructure. APA’s strategic emphasis on gas transmission, contracted power generation, and electricity transmission positions it well to capitalize on Australia’s evolving energy landscape and the transition to renewables.
Bottom Line?
APA’s FY25 results reinforce its position as a resilient energy infrastructure leader, poised for growth amid Australia’s energy transition.
Questions in the middle?
- How will the planned divestment of the Networks business impact APA’s future earnings and growth profile?
- What are the risks and uncertainties around Basslink’s earnings as it transitions to an uncontracted market provider?
- How will APA balance capital allocation between organic growth projects and potential partnerships or asset recycling?
