Genesis Energy (GNE) Q2 2026 TU earnings summary

Executive summary

• Achieved a solid Q2 FY26 performance, leveraging portfolio flexibility and favorable hydrological conditions to deliver record-low thermal generation and strong financial results.

• Hydro generation increased to 740 GWh (+21 GWh year-over-year), with lake levels rising to 122% of average, enhancing dispatch options.

• Portfolio optimization enabled incremental gas monetization and improved margin quality, with electricity netbacks at $159/MWh, up 18% year-over-year.

• Strategic progress included advancing renewable projects, executing a framework with Yinson Renewables, and finalizing investments in solar farms.

Financial highlights

• Normalised EBITDAF guidance for FY26 raised to $490–$520 million, up from $455–$485 million, reflecting strong H1 performance and margin quality.

• Total electricity sales reached 1,455 GWh (+22 GWh year-over-year), with retail netback at $159/MWh (+18%).

• Thermal generation dropped to 85 GWh in Q2 (–201 GWh year-over-year), a record low.

• Kupe gas sales were 1.5 PJ (+0.03 PJ), while oil production was 31 kbbl (–2.9%).

• Total customers declined 4% year-over-year to 495,706, reflecting a focus on margin quality.

Outlook and guidance

• FY26 Normalised EBITDAF guidance increased due to strong H1 performance and margin optimization, partially offset by higher operating costs.

• H2 FY26 EBITDAF expected to align with prior assumptions; diversified portfolio and disciplined capital allocation support guidance.