Mercury NZ (MCY) Investor Day 2025 summary

Strategic direction and leadership

• Refreshed strategy focuses on value from core assets, portfolio optimization, and executable generation development options for the next 5–10 years.

• Executive team restructured to align with three value drivers: core operations, portfolio management, and generation development.

• Emphasis on disciplined capital allocation and risk management to support dividend growth and long-term shareholder returns.

• Strong focus on talent, culture, and partnerships, especially with Iwi, to support infrastructure growth and sector trust.

• Committed to sector leadership in renewables, social license, and partnerships, with a strong track record in project delivery and stakeholder engagement.

Financial guidance and performance

• FY2024 EBITDA was NZD 877 million; FY2025 guidance is NZD 760 million due to a very dry year.

• Targeting FY30 EBITDAF of $1,150m to $1,250m, supported by value-accretive renewables and cost discipline.

• Cost out programme aims to maintain OpEx at NZD 370 million through FY2028, with a 30% reduction in OpEx per connection targeted by FY2028.

• 16th consecutive year of ordinary dividend growth to FY24; total shareholder return of 10.3% since listing.

• Net debt expected to peak at 2.5x if all growth projects are delivered by 2030.

Generation and development pipeline

• Targeting delivery of 3.5 TWh of new renewable generation by 2030, with a pipeline to exceed 8 TWh by 2030 and up to 5 TWh of post-2030 geothermal opportunities.

• NZD 1 billion of projects under construction, including three large generation developments (wind, geothermal).

• Advancing major projects: Ngā Tamariki OEC5 geothermal, Kaiwera Downs Stage 2 wind, and Kaiwaikawe wind, all on time and on budget, plus rights secured for a 300MW BESS at Whakamaru.

• Focus on wind and geothermal as primary growth technologies, with cautious participation in solar via PPAs and BESS as flexible options.

• Mahinerangi 2 and Waikokowai/Puketoi wind projects advancing for 2030 delivery.