Meridian Energy (MEL) H2 2026 earnings summary

Executive summary

• Achieved record EBITDAF of $1.05 billion, a significant turnaround from FY25, driven by strong inflows, lower derivative costs, and mass market sales growth.

• Operating cash flows rose to $810 million, up $492 million on FY25 and 21% higher than FY24.

• Net profit after tax reached $130 million, a $582 million increase from FY25, with underlying NPAT up $252 million to $308 million.

• 12% growth in customer numbers, with over 175,820 migrated to the Kraken platform.

• Recognized globally for sustainability, included in Dow Jones Best-in-Class World Index.

Financial highlights

• EBITDAF hit $1.05 billion, up $440 million on FY25 and 16% higher than FY24.

• Operating cash flows reached $810 million, up $492 million on FY25 and 21% higher than FY24.

• Net profit after tax up $582 million to $130 million; underlying NPAT up $252 million to $308 million.

• Full-year dividend increased to 22.5 cents per share, up 7.1%, with 83% payout ratio.

• Net debt increased 11% to $1.7 billion, but net debt/EBITDA improved to 1.6x from 2.5x.

Outlook and guidance

• FY27 EBITDAF guidance set at $1.04–1.12 billion, reflecting strong hydro storage and normal hydrology assumptions.

• Operating costs expected to rise 2.5–4% to $321–326 million, mainly due to IT, solar operations, and digital initiatives.

• CapEx forecast at $370–410 million, with major spend on Ruakākā Solar completion and Waitaki Hydro upgrade.

• Targeting 500,000–600,000 retail customers by 2030 and 1,000 public EV charge points by 2030.

• Committed to holding average price increases for residential and small business customers below inflation for the next year.