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Mercury NZ Limited (ASX:MCY)

ALERT: Price-sensitive ASX Announcement for MCY
Current share price for MCY : $5.440 -0.08 (-1.45%)+
Announcement
Release
18 Aug 2026 7:30AM
Price at Release
$5.520
Full Release
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Summary
Mercury NZ Limited delivered a strong financial performance in FY26, attributed to increased hydro and renewable generation, alongside disciplined cost management. The company reinvested a significant portion of its earnings into renewable assets, with three major projects commencing generation in 2026. Their robust balance sheet, reported earnings, and strategic investments underscore Mercury's commitment to expanding renewable capacity and meeting New Zealand's energy demands. Future projections for FY27 include further growth in earnings and dividends, reflecting continued investment in high-quality renewable assets.
Key Points
  • Mercury NZ Limited reported strong FY26 financial performance.
  • Operating earnings (EBITDAF) totaled $1,068 million, a 36% increase from FY25.
  • The company reinvested 66% of its operating earnings into renewable generation assets.
  • Three major renewable projects commenced in 2026, expected to be fully operational by the end of the year.
  • Mercury’s next development is the Puke Kapo Hau Wind Farm, with Board approval for a $506 million investment.
  • Net Profit After Tax was $321 million, supported by higher EBITDAF and offset by electricity derivatives' valuation movements.
  • FY27 guidance includes an expected EBITDAF of $1,075 million and a dividend of 29.0 cents per share.
  • The balance sheet remains strong with a debt-to-EBITDA ratio of 2.0x according to S&P.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.