Ireda signs accord with govt on FY26 revenue target

Ireda signs accord with govt on FY26 revenue target

APA Group Limited (APA), a leading Australian energy infrastructure company, has entered into an agreement with the Australian government to achieve a FY26 revenue target. The accord was announced on July 2, 2025, and aims to ensure sustainable growth and financial stability for the company [1].

Under the terms of the agreement, APA will work closely with the government to meet the revenue target, which is expected to be around $2,120 million to $2,200 million for FY26. This target represents a mid-point growth of 7.2% on FY25, ahead of inflation, and is supported by contributions from new assets and cost reduction initiatives [1].

The agreement also includes provisions for ongoing cost reduction initiatives, with a target of approximately $50 million for FY26. This will help APA maintain its investment grade credit ratings and deliver strong returns to its securityholders [1].

APA CEO Adam Watson commented, "This accord demonstrates our commitment to working with the government to achieve sustainable growth and financial stability. We are confident that our growth strategy, supported by our diverse portfolio of assets, will help us meet the FY26 revenue target and deliver value to our securityholders."

The agreement is a significant step forward for APA, as it aligns the company's growth plans with the government's energy sector objectives. It also reflects APA's strong performance in FY25, with underlying EBITDA up by 6.4% to $2,015 million and a distribution of 57.0 cents per security [1].

References:
[1] https://www.marketscreener.com/news/apa-fy25-full-year-financial-results-asx-release-250820-asx-release-apa-delivers-strong-fy25-ea-ce7c51ddd188ff24