Mercury NZ (MCY) H2 2026 earnings summary

Executive summary

• FY26 delivered record EBITDAF of $1,068m, up 36% year-over-year, driven by higher renewable generation, disciplined cost management, and a strong balance sheet.

• Operating cashflow rose 58% to $762m, supporting growth investment and the 18th consecutive year of dividend growth.

• Three major renewable projects delivered on time and on budget, adding 1.1TWh of new generation.

• 41% of customers hold two or more products, with churn 5% below the market average.

• Launched Flex Rates and continued support for customers and community organizations.

Financial highlights

• EBITDAF reached $1,068m, a 36% increase year-over-year, exceeding upgraded guidance.

• Operating expenditure held at $370m, down $26m from FY25 (10% in real terms).

• Operating cashflow totaled $762m, up from $483m in FY25.

• Capital expenditure was $710m, with $560m for growth and $150m for stay-in-business capex.

• Ordinary dividend increased 13% to 27cps, marking the 18th consecutive year of growth.

Outlook and guidance

• FY27 EBITDAF guidance set at $1,075m, with dividend guidance of 29cps and $150m stay-in-business CapEx.

• FY30 EBITDAF target raised to $1.2–$1.25b, reflecting higher confidence in growth pathway.

• 87% of FY30 generation already contracted, providing strong earnings visibility.

• Dividend policy and capital allocation settings under review as earnings and cashflow evolve.

• Guidance subject to material events, one-off expenses, and hydrological conditions.