AGL Energy Ltd shares surged 5.47% during intraday trading on Wednesday, following the release of its full-year results and optimistic forward guidance.

The company reported FY revenue of AUD 13,590 million and an adjusted net income of AUD 631 million, which slightly missed the IBES estimate of AUD 637.4 million. However, investors focused on the positive outlook, with AGL providing FY27 underlying EBITDA guidance between A$1,900 and A$2,200 million and underlying net profit after tax between A$470 and A$670 million.

Additionally, AGL announced a final dividend of AUD 0.5 per share and set a target dividend payout ratio of 55% to 60% for FY27, along with plans for A$50 million in sustainable net operating expense reductions by FY27. These announcements bolstered investor confidence and drove the stock higher.