AGL Energy (ASX: AGL) dived -13.8% in afternoon trade as disappointed investors reacted to its FY25 results by swiftly dumping stock. The company booked a loss of $98 million, weighed down by $596M in one-off hits.
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Despite the headline loss, AGL’s underlying earnings were in line with expectations. Underlying EBITDA was $2.01 billion, down -9% on FY24, while underlying net profit after tax came in at $640M, down -21%.
Shareholders will receive a fully franked final dividend of 25 cents, bringing the total dividend for the year to 48cps.
The numbers reflect both the challenges and progress of a business mid-transition, the company’s chief executive, Damien Nicks, said. “We delivered a strong full-year financial result consistent with our guidance. As expected, earnings were down on last year due to lower wholesale electricity prices and pressure on retail margins.”
We also made a conscious decision not to fully pass through cost increases to support customer affordability,” he added.
The big-ticket impacts to the bottom line included a $398M increase in onerous contract provisions and $87M in costs linked to AGL’s retail transformation.
But, the company’s leadership remains upbeat: “This result continues the recovery in AGL’s earnings and lays a solid foundation for the continued strategic investment in growth and the transition of AGL’s business,” Mr Nicks highlighted.
AGL also acquired Tesla’s South Australian Virtual Power Plant through the reported period, boosting its demand-side flexibility.
And, customer satisfaction hit 81.6%, with NPS rising to plus eight, AGL reported. The customer base grew to 4.6 million services, up 78,000 on FY24.
Looking ahead, AGL guidance for FY26 includes underlying EBITDA of $1.92 to $2.22B, and underlying NPAT between $500 and $700M. Nicks pointed to “disciplined cost management and digitisation” as key areas of focus.
AGL has been trading at $8.89, approaching Wednesday’s close.
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