AGL Energy (ASX:AGL) and Origin Energy (ASX:ORG) are set to see the impact of lower electricity demand due to higher renewable energy generation and warmer weather, according to a Thursday Jefferies note.

Both companies are still expected to deliver fiscal year 2026 results in line with expectations, the note added.

AGL Energy's expected earnings before interest, tax, depreciation, and amortisation (EBITDA) for fiscal year 2027 and fiscal year 2028 have been reduced by 4.6% to AU$2.11 billion and AU$2.17 billion, respectively, while Origin Energy's expected Energy Markets EBITDA for fiscal year 2027 was cut by 4.1% to AU$1.65 billion.

Jefferies kept a buy rating on both AGL Energy and Origin Energy with price targets of AU$11.21 and AU$12.54, respectively.