Vector (VCT) H2 2026 earnings summary

Executive summary

• Achieved strong financial performance in FY26, with disciplined capital allocation, record investment in the electricity network, and a focus on customer outcomes.

• Revenue from continuing operations rose 12% year-over-year to $1,004 million, driven by the full-year impact of DPP4 and strong electricity segment performance.

• Adjusted EBITDA increased 20% to $482 million, reflecting higher allowable returns and operational improvements.

• Net profit after tax reached $240 million, up 55% year-over-year, with no impairments in FY26 compared to a $37 million impairment in FY25.

• Maintained a strong balance sheet with a BBB+ credit rating and gearing at 39%.

Financial highlights

• Revenue increased by $111 million year-over-year, mainly due to DPP4 reset.

• Adjusted EBITDA up $81 million to $482 million, led by electricity segment growth.

• Net profit after tax increased by $86 million to $240 million, reflecting stronger earnings and absence of prior year gas impairment.

• Gross capital expenditure reached a record $544 million, up 16%.

• Operating cash flow rose 23% to $633 million; cashflow improved by $117 million (+55%) year-over-year.

Outlook and guidance

• FY27 guidance: Adjusted EBITDA forecast at $540–560 million, gross CapEx at $605–635 million, and capital contributions at $160–190 million.

• Revenue expected to benefit from DPP4 adjustments and $54 million in revenue wash-up and IRIS adjustments.

• Expect another record year of electricity network investment, primarily in replacement CapEx.

• Capital contributions guidance range is lower due to timing of major projects.

• Customer-driven activity expected to remain stable, with capital spend focused on replacement CapEx.