Mercury NZ Limited Q4 2026 Earnings Recap

Mercury’s shares rose 4.8% as the company delivered EBITDAF growth driven by higher renewable generation and disciplined cost management, while reaffirming ambitious investment and dividend targets.

Key Takeaways

• EBITDAF increased 36% to $1.068 billion, powered by a 15% rise in total generation to 9.1 terawatt hours, supported by hydro, geothermal, and new wind projects.
• Operating expenses were tightly controlled at $370 million, down $26 million from FY ’25, reflecting structural efficiencies in people and maintenance costs.
• Capital expenditure rose 46% to $710 million, with a focus on growth projects and asset refurbishment, including a $590 million hydro refurbishment program and commitment to geothermal drilling.
• The dividend was increased 13% to $0.27 per share, with guidance indicating a further rise to $0.29 for FY ’27; the company is reviewing dividend policy post its current investment cycle.
• Balance sheet remains solid with debt/EBITDAF at approximately 2.0x, comfortably within BBB rating guardrails despite record investments.