New Zealand's Mercury NZ FY26 net profit surges on higher hydro output

Mercury NZ

17/08/2026 21:42

Overview
New Zealand electricity generator's FY26 net profit surged, driven by higher operating earnings
FY26 operating earnings rose 36% on higher hydro output and lower operating costs
Company reinvested 66% of FY26 operating earnings in renewable generation assets

Outlook
Mercury NZ forecasts FY27 EBITDAF of NZ$1,075 mln
Company expects FY27 dividend of 29.0 NZ cents per share
Company says strong balance sheet enables ongoing investment in renewable generation assets

Result Drivers
HYDRO GENERATION - Higher hydro output contributed to increased operating earnings, per company statement
RENEWABLE PROJECTS - New renewable generation projects, including geothermal and wind farms, began producing power in FY26
COST MANAGEMENT - Lower operating costs from productivity initiatives supported earnings

Company press release: ID:nNZS8d5a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Net Income
 
NZ$321 mln
 
FY Operating earnings
 
NZ$1,068 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Mercury Nz Ltd is NZ$7.05, about 6.2% above its August 17 closing price of NZ$6.64
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)