Mercury NZ (MCY) Q2 2026 TU earnings summary

Executive summary

• High national hydrological inflows (98th percentile) led to lower wholesale spot electricity prices, averaging $40/MWh in Auckland for the quarter.

• National electricity demand rose 3.1% year-over-year, driven by the resumption of normal operations at the New Zealand Aluminium Smelter.

• Commissioning of the new Ngā Tamariki OEC5 geothermal unit began as planned, with expected generation upside and full commissioning by end of Q3.

• Customer bundling strategy increased multi-product connections by 10% to 223,000, with telco and mobile connections up by 30,000 year-over-year.

Financial highlights

• Hydro generation increased 23% year-over-year to 1,072 GWh, while wind generation rose 6% and geothermal generation fell 9% due to planned maintenance.

• Commercial & Industrial yield declined by $3.2/MWh year-over-year, reflecting contract repricing and new long-term agreements.

• Physical electricity sales volume was 1,463 GWh at a VWAP of $166.05/MWh, compared to 1,473 GWh at $155.53/MWh in the prior year.

• Mass market sales volume was 916 GWh at $195.55/MWh, down from 970 GWh at $174.30/MWh year-over-year.

• Gas sales price increased to $42.36/GJ from $31.61/GJ year-over-year, with volumes slightly down.

Outlook and guidance

• Forward electricity prices in Auckland for FY26 have eased to $135/MWh, reflecting high inflows and above-average hydro storage.

• Ngā Tamariki OEC5 geothermal expansion is expected to add 390 GWh per annum and 46 MW net output upon full commissioning by end of Q3.