Mercury NZ (MCY) H1 2026 earnings summary

Executive summary

• HY26 delivered strong results with EBITDAF up 28% to $537 million, driven by higher renewable generation, disciplined cost management, and significant reinvestment in hydro, geothermal, and wind assets.

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

• 40% of customers are now multi-product, enhancing value per customer and efficiency.

• Major renewable projects, including geothermal and wind, are progressing on time and within budget, supporting long-term growth and energy transition.

• Leadership strengthened with new executive appointments and a high-performing culture.

Financial highlights

• EBITDAF for HY26 was $537 million, up 28% year-over-year, with operating cash flow of $531 million and record generation from renewables.

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

• Interim dividend increased 4% to 10 cents per share; full-year dividend guidance at 25 cps.

• OpEx down to $370 million guidance, a reduction from $396 million last year; OpEx per connection down 4% year-over-year and 16% below HY24.

• Net debt rose slightly to $2.243 billion, with debt to EBITDA at 2.2x, maintaining strong liquidity and BBB+ credit rating.

Outlook and guidance

• FY26 EBITDAF guidance maintained at $1 billion, with OpEx at $370 million and SIB CapEx at $150 million.

• Targeting 3.5 TWh of new renewable generation by 2030 and EBITDA aspiration of $1.15–1.25 billion by FY30.

• Project pipeline and balance sheet capacity support delivery of growth ambitions; guidance unchanged despite strong first half due to hydrology and market uncertainties.

• Fully imputed interim dividend of 10.0 cents per share approved, with dividend reinvestment plan continuing.