The AGL Energy Limited (ASX: AGL) share price is under the spotlight after the business reported its FY26 half-year result.
AGL Energy is one of Australia’s largest energy retailers and generators.
AGL Energy HY26 result
Here are some of the numbers from the report for the six months to 31 December 2025:
- Underlying EBITDA (EBITDA explained) was flat at $1.09 billion
- Underlying net profit after tax (NPAT) fell 6% to $353 million
- Statutory net profit declined 42% to $94 million
- Interim dividend per share, up 4.3% to $0.24
What happened?
In terms of the statutory profit, the figure included a loss on the fair value of financial instruments of $143 million, as well as $116 million of significant items. The $116 million included retail transformation costs of $45 million and an increase in onerous contract provisions of $42 million.
The company revealed that its total AGL customer services rose by 108,000 to 4.7 million, with the customer satisfaction increasing to a rating of 83.8, up from 81.6 in FY25.
In terms of its energy generation, the business reported it produced 15.4 TWh over the half-year period, down 2.8% year on year. Its energy generation fleet available performance was 80.1%, up 2.6 percentage points year on year.
AGL also noted that software business Kaluza, which the ASX energy share is a shareholder of, has delivered customer growth. In September, it signed its third major customer in Engie. AGL says this bodes well for potential growth in other regions.
The business reported that its development pipeline has grown to 11.3GW, up from 9.6GW as reported in FY25.
Construction has commenced on the 500MW Tomago battery in NSW, while the Liddell battery has commenced hold point testing.
New partnership
AGL also announced today it has signed a long-term partnership with Aussie Broadband Ltd (ASX: ABB).
AGL will divest its telecommunications business, with its 400,000 telco customer services being acquired by Aussie Broadband in exchange for proceeds of approximately $115 million of Aussie Broadband shares, equating to 7.5% of Aussie Broadband.
There is an opportunity for AGL to increase its equity if there is net growth in these customer services.
AGL said that partnership will allow it to simplify its customer market operations and reduce ongoing operating costs, while maintaining its growing telco brand and retaining the retention benefits the bundled offering provides.
Outlook for the AGL Energy share price
AGL decided to narrow its underlying earnings guidance after delivering this result.
It noted the strong first-half performance driven by consumer margins, lower than guided operating costs (due to disciplined strong management) and lower than guided depreciation because of greater water price certainty on the future rehabilitation of Loy Yang.
In terms of guidance, underlying EBITDA is now expected to be between $2.02 billion to $2.18 billion, compared to previous guidance of between $1.92 billion to $2.2 billion.
Underlying net profit is now expected to be between $580 million to $680 million (compared to previous guidance of between $500 million to $700 million).
AGL noted that there is typical seasonality of customer gas and electricity demand, as well as the gradual roll-off of lower-priced legacy gas supply contracts.
The ASX energy share also noted that it’s targeting $50 million of sustainable net operating cost reductions in FY27. This should help next year’s profitability.
Before today’s trading, the AGL share price was down 24% year on year, so this could be a good time to look at the energy retailer and generator as it adds to its energy asset portfolio, grows its customer base and delivers a slightly higher payout.
But, it’s not one of the first ASX dividend shares I’d buy.
