Vector (VCT) H1 2026 earnings summary

Executive summary

• Net profit after tax for continuing operations was $113 million, down 4% year-over-year, mainly due to lower capital contributions, fair value movements, and higher depreciation and interest costs.

• Adjusted EBITDA for continuing operations rose 19% to $240 million, driven by a 14% increase in revenue under new regulatory settings.

• Gross capital expenditure for continuing operations was $223 million, down 15% from the prior period.

• Interim dividend declared at 12.5 cents per share, reflecting confidence in performance and to be paid on 31 March 2026.

• Discontinued gas trading operations and Eco-Products Group Limited were sold, with final proceeds received and discontinued operations now fully divested.

Financial highlights

• Revenue from continuing operations increased 14% year-over-year to $594.4 million.

• Adjusted EBITDA from electricity segment up 28% to $220 million; gas segment EBITDA flat at $24 million.

• Capital contributions were $97 million, down 22% from the prior period.

• Net cash flows from operating activities were $325.1 million, up from $276.9 million in the prior year.

• Group gearing stable at 37%.

Outlook and guidance

• Full-year adjusted EBITDA forecasted at $470–$490 million.

• Gross capital expenditure guidance narrowed to $500–$540 million for the year.

• Capital contributions expected between $180–$215 million.

• Dividend payout for the full year will consider the 70% minimum policy.

• Commerce Commission's draft decision on DPP4 for gas distribution expected to impact future cash flows, with final decision due May 2026.