Mercury NZ (MCY) H2 2026 earnings summary

Executive summary

• FY26 delivered record EBITDAF of $1,068 million, up 36% year-over-year, driven by higher renewable generation, disciplined cost management, and strong hydro performance.

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

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

• 41% of customers now 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 $1,068 million, exceeding upgraded guidance and up from $786 million in FY25.

• Operating expenditure held at $370 million, down 6.6% from FY25 and 10% in real terms.

• Operating cashflow of $762 million, up from $483 million in FY25.

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

• Ordinary dividend increased 13% to $0.27 per share, with FY27 guidance of $0.29.

Outlook and guidance

• FY27 EBITDAF guidance set at $1,075 million, with $0.29 per share dividend and $150 million stay-in-business CapEx.

• FY30 EBITDAF target range lifted to $1.2–$1.25 billion, assuming long-term power price of $120–$130/MWh.

• 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.