Mercury NZ (MCY) investor relations material

Executive summary

• HY26 EBITDAF reached $537m, up 28% year-over-year, driven by higher renewable generation and disciplined cost management.

• Net profit after tax (NPAT) was $20m, reversing a prior year loss, supported by strong operating cash flow and lower operating expenses.

• Major investments in hydro, geothermal, and wind assets are progressing on time and within budget, with a focus on long-term growth and asset resilience.

• Customer multi-product penetration reached 40%, with connections up 30,000 year-over-year, enhancing customer value and efficiency.

• Health, safety, and wellbeing metrics improved, with TRIFR at 0.39 for the calendar year.

Financial highlights

• Record EBITDAF of $537m and operating cash flow of $531m for the half year, with net cash provided by operating activities at $351m.

• NPAT was $20m, impacted by negative non-cash fair value movements on electricity derivatives.

• Interim dividend increased 4% to 10cps; dividend guidance for FY26 remains at 25cps.

• OpEx per connection down 4% year-over-year and 16% below HY24, with OpEx guidance at $370m.

• Net debt increased to $2.243b, with debt to EBITDA at 2.2x, within target range for BBB+ rating.

Outlook and guidance

• FY26 EBITDAF guidance maintained at $1b, based on 4.4 TWh hydro generation and OpEx target of $370m.

• Sustained business CapEx guidance at $150m; growth investments and project pipeline on track.

• Dividend guidance unchanged at 25cps, up 4% year-over-year.

• Targeting FY30 EBITDAF of $1.15–1.25b, with 3.5 TWh new generation by 2030.

• Fully imputed interim dividend of 10.0cps approved, with dividend reinvestment plan continuing.