Contact Energy (CEN) H1 2026 earnings summary

Executive summary

• EBITDAF rose 24% to $500 million for 1H26, with net profit up 44% to $205 million year-over-year, driven by the Manawa acquisition and strong renewable generation, which reached 97% of total output.

• The Manawa acquisition was completed, integrating 25 hydro schemes and a 75% stake in King Country Energy, securing over 80% of targeted cost synergies within six months.

• Major infrastructure projects, including Glenbrook battery 2.0, Glorit solar, and Tauhara 2 geothermal, are progressing, supported by a $525 million equity raise.

• Launched Contact31+ strategy to accelerate renewable energy leadership and project pipeline.

• Interim dividend maintained at 16c per share, with full-year target of 40c per share.

Financial highlights

• EBITDAF for 1H26 was $500 million, up $96 million (24%) from prior period; adjusted EBITDAF excluding Manawa transaction/integration costs was $522 million.

• Net profit after tax increased by $63 million (44%) to $205 million.

• Operating free cash flow surged 80% to $249 million, reflecting improved performance and lower capex.

• Interim dividend declared at 16c per share, with total FY26 dividend guidance reaffirmed at 40c per share.

• Stay-in-business capex was $59 million, and growth capex was $166 million for the period.

Outlook and guidance

• FY26 expected reported EBITDAF upgraded to $965 million, with normalised EBITDAF at $995 million, reflecting first-half outperformance.

• Total FY26 dividend expected to be 40c per share, with 41–42c targeted for FY27.

• SIB capex guidance for FY26 is $170–185 million; growth capex $500–510 million.

• Focus on rapid execution of Contact31+ strategy, with major renewable projects underway and further investments planned.

• Operating cash flow conversion expected to remain at 50%.