Meridian Energy (MEL) investor relations material

Executive summary

• Net profit after tax was $227 million for the six months ended 31 December 2025, reversing a $121 million loss in the prior year, driven by record wind output, high hydro inflows, and customer growth.

• Operating cash flows reached $336 million, a significant rebound from the prior year, supported by favorable weather and operational execution.

• EBITDAF rose to $506 million, up 97% year-over-year, reflecting strong operational performance and increased generation volumes.

• Retail sales volumes and customer connections reached record levels, with market share rising from 17.5% to 19.5% following strategic acquisitions.

• Major investments in solar, wind, and technology platforms are underway, with a focus on affordability and customer experience.

Financial highlights

• Operating cash flow for H1 FY26 was $336 million, up $286 million from H1 FY25 and 11% higher than H1 FY24.

• EBITDAF reached $506 million, up from $257 million year-over-year, and energy margin increased to $708 million from $444 million.

• Underlying NPAT improved to $143 million from a $5 million loss in the prior year.

• Interim dividend increased 4% to 6.40 cents per share, imputed at 85%, with a 2% DRP discount.

• Net debt to EBITDAF improved to 1.9x from 2.5x in June; net debt at December 2025 was $1,655 million.

Outlook and guidance

• Full-year EBITDAF guidance unchanged at $311–316 million, with forecasts at the higher end.

• CapEx expected to be $330–360 million for the year, with higher spend in H2 and $240 million in capital commitments at period end.

• Final investment decisions on Mt Munro, Te Rere Hau, and Te Rahui Solar Farm Stage Two targeted in the next 12 months.

• Kraken customer migration expected to complete by October 2026, reducing dual system costs by 2027.

• Ongoing focus on expanding renewable generation and maintaining a 30% market share.