AGL Energy Ltd (AGL.AU) shares plummeted 8.71% in intraday trading following the release of its full-year financial results and future guidance. The sharp decline comes as the Australian power producer reported disappointing earnings and a less optimistic outlook for the coming fiscal year.

For the fiscal year ended June 30, AGL Energy posted an underlying profit of A$640 million, marking a significant 21.2% drop from the previous year's A$812 million. This figure fell short of analysts' expectations, with the Visible Alpha consensus estimate standing at A$653.2 million. The company attributed the decline to lower wholesale electricity prices and reduced consumer margins.

Adding to investors' concerns, AGL provided a cautious outlook for fiscal year 2026. The company forecasts underlying net profit after tax to be between A$500 million and A$700 million, with the midpoint falling below the current market consensus of A$667.8 million. AGL cited higher operating and finance costs due to increased investments and total borrowings as factors impacting the lower guidance. Furthermore, in a move that likely disappointed income-focused shareholders, AGL announced a cut to its final dividend, declaring 25 Australian cents per share compared to 35 cents in the previous year.