APA Group reported solid FY25 financial results with revenue and EBITDA growth, advanced key infrastructure projects, and meaningful progress on climate targets, while navigating executive leadership transitions.
- Revenue up 4.6% to $3.204 billion
- Underlying EBITDA increased 6.4% to $2.015 billion
- Statutory profit after tax declined due to prior year significant items
- Progress on East Coast Gas Grid Expansion and Atlas to Reedy Creek Pipeline acquisition
- 13.3% net reduction in gas infrastructure emissions relative to FY21
Strong Financial Performance Amid Strategic Growth
APA Group delivered a robust financial performance for the fiscal year ended 30 June 2025, with total revenue rising 4.6% to $3.204 billion and underlying EBITDA climbing 6.4% to $2.015 billion. These gains were driven by inflation-linked tariff escalations, increased gas volumes, and the full-year contribution from the Pilbara Energy System acquisition. Despite a significant drop in statutory profit after tax to $129 million, largely due to prior year one-off items, the underlying profit after tax excluding significant items grew 8.4% to $129 million.
The group’s free cash flow edged up 0.9% to $1.083 billion, supporting a 1.8% increase in distributions to 57.0 cents per security, marking APA’s 21st consecutive year of distribution growth. The Board declared a final distribution of 30.0 cents per security, comprising both profit and capital components, to be paid in September 2025.
Advancing Key Infrastructure and Growth Projects
APA continued to execute on its customer-focused growth strategy, highlighted by the announcement of a five-year East Coast Gas Grid Expansion Plan aimed at increasing north-to-south gas transport capacity by approximately 24%. The acquisition of the Atlas to Reedy Creek Pipeline further extends APA’s east coast gas transmission network, underpinning long-term supply security.
Other notable projects include the Kurri Kurri Lateral Pipeline and Storage Project, which supports the Hunter Power Project in New South Wales, and the Sturt Plateau Pipeline in the Northern Territory, critical for unlocking gas supply from the Beetaloo Basin. These projects align with APA’s strategy to be the partner of choice for energy infrastructure solutions supporting Australia’s energy transition.
Operational Excellence and Sustainability Leadership
Operational reliability remained high, with gas transmission nominations delivered at 99.99% and remote grid customer availability at 99.34%. APA also achieved a 6.5% gross and 13.3% net reduction in gas infrastructure emissions compared to its FY21 base year, reflecting progress against its Climate Transition Plan. Enhanced methane measurement techniques were deployed on key assets, providing greater transparency and informing abatement strategies.
APA’s commitment to sustainability is further demonstrated by its procurement of 100% renewable electricity and ongoing investments in renewable energy and battery storage projects, including the Port Hedland Solar and Battery Project in Western Australia. The company’s 2025 Climate Transition Plan refresh reaffirms its net zero operational emissions ambition by 2050 and sets medium-term goals for Scope 3 emissions reduction.
Governance and Leadership Updates
FY25 saw several executive leadership changes, including the appointment of Beth Griggs as Group Executive Strategy and Corporate Development and Rob Evans as Group Executive Infrastructure Delivery. The Board welcomed new directors, enhancing its expertise in energy transition and governance. APA maintains investment grade credit ratings (BBB/Baa2) and a disciplined capital management framework to support growth and shareholder returns.
APA’s governance framework continues to emphasize safety, social licence, and community engagement, with initiatives such as the Reflect and Innovate Reconciliation Action Plans and expanded social procurement strategies. The company’s focus on culture, inclusion, and employee wellbeing complements its operational and sustainability objectives.
Bottom Line?
APA’s FY25 results underscore its steady growth and climate leadership, setting the stage for continued execution of its energy transition strategy amid evolving market and regulatory landscapes.
Questions in the middle?
- How will APA manage regulatory risks related to gas infrastructure and electricity transmission in FY26?
- What are the prospects and timelines for key growth projects like the East Coast Gas Grid Expansion and Beetaloo Basin developments?
- How will evolving methane measurement standards impact APA’s future emissions reporting and abatement strategies?