The AGL Energy Limited (ASX: AGL) share price is under the microscope after the company reported its FY26 result.
AGL is one of the largest energy generators and retailers in Australia.
FY26 result
Here are the main highlights from the report for the 12 months to 30 June 2026:
- Underlying EBITDA (EBITDA explained) grew 2% to $2.1 billion
- Underlying net profit after tax fell 2% to $631 million
- Statutory net profit after tax (NPAT) increased $644 million to $756 million
- Final dividend per share of $0.26, up 4%
- Full-year dividend per share up 4.2% to $0.50 per share
What happened in this result?
The company saw pleasing improvements in customer metrics. Total AGL customer services rose 92,000 to 4.6 million and its customer satisfaction rating increased to 84.1, up from 81.6 in FY26.
In terms of its energy generation reliability, AGL said that its fleet equivalent availability factor (EAF) was 83.4%, 4.3 percentage points higher than FY25. Total generation volume was 31.8 TWh, down 3.4% year on year.
AGL said improved availability and flexibility of its energy generation asset portfolio, including continuing strong performance of batteries, supported resilience against a period of low price volatility in the national energy market. This was driven by milder weather, strong renewable energy generation across the energy market, among other things.
The ASX energy share noted that its gross margin for gas decreased due to an increase in gas purchase costs, reflecting the gradual roll-off of lower priced legacy gas supply contracts during the way.
The company managed to deliver $30 million of sustainable net operating expenditure reductions in FY26 – it has an overall target of $50 million by FY27.
Project progress
AGL reported that its Liddell battery is operational, with construction of the Tomago battery progressing.
It also said that construction has started on the 220MW Kwinana Swift Gas 2 project in WA.
AGL noted it divested its 19.9% stake in Tilt Renewables for $750 million (before transaction costs).
The company also said that it’s progressing an investment partnership for the development of 2GW of a wind farm portfolio.
Software business Kaluza – which AGL has a stake in – has signed a global agreement with ENGIE.
Finally, AGL noted its telco business has been divested and it has signed a long-term partnership with Aussie Broadband Ltd (ASX: ABB).
Outlook for the AGL share price
The ASX energy share provided guidance for its FY27 profit figures, suggesting that underlying EBITDA could be between $1.9 billion to $2.2 billion. The mid-point of that guidance suggests a slight decline, year on year.
Underlying net profit is expected to be between $470 million to $670 million. The mid-point of that guidance suggests a decline of 10%.
Overall, the underlying numbers don’t seem very exciting to me. I think battery (and other energy storage) investments will be key for AGL’s future so that it can unlock good earnings during times when the sun isn’t shining.
But, it’s not one of my favourite ASX dividend shares to consider right now considering earnings are likely to fall in FY27.
