Mercury NZ (MCY) H1 2026 earnings summary

Executive summary

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

• Net profit attributable to owners was $20m for the six months ended 31 December 2025, reversing a prior year loss, with total comprehensive income at $35m.

• 40% of customers now use multiple products, enhancing customer value and efficiency.

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

• Leadership strengthened with new executive appointments in customer, sustainability, and people roles.

Financial highlights

• EBITDAF for HY26 was $537m, a 28% increase compared to HY25, primarily due to above-average hydrology and cost discipline.

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

• Operating cash flow rose to $351m, up from $227m in the prior year.

• Ordinary interim dividend increased 4% to 10cps; full-year guidance for 25cps.

• OpEx per connection fell 4% year-over-year and 16% from HY24.

Outlook and guidance

• FY26 EBITDAF guidance maintained at $1.0b, with OpEx at $370m and SIB CapEx at $150m.

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

• Dividend guidance unchanged at 25cps, up 4% from FY25.

• No change to FY26 guidance despite strong first half, citing hydrology and market uncertainties.