Contact Energy
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Contact Energy (CEN) investor relations material

Contact Energy CMD 2025 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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CMD 2025 summary24 Nov, 2025

Strategic vision and leadership

  • Launched Contact31+, a strategy to lead New Zealand’s renewable energy future, building on Contact26 and targeting transformation beyond electricity decarbonization, with a focus on geothermal, wind, solar, and battery storage expansion.

  • Renewed and refreshed leadership team to support execution of Contact31+.

  • Emphasized empowered people, stakeholder relationships, and technology as key enablers.

  • Set clear, measurable commitments for 2027 and 2031, including operational, financial, and sustainability milestones.

  • The company’s diversified portfolio and cost leadership position it to capture new demand and manage volatility.

Growth, investment, and financial guidance

  • Targeting EBITDA/EBITDAF growth to NZD 1.3–1.4 billion by FY2031, with a 300 basis point uplift in ROIC and dividends over NZD 0.50 per share.

  • Committed NZD 2–2.5 billion in growth capital over five years, focusing on geothermal, batteries, wind, and solar, with 250MW+ geothermal, 500MW batteries, 500MW+ wind, and 450MWac solar targeted by FY31.

  • Maintaining a net debt/EBITDA ratio of 2.6x–2.8x, protecting BBB credit rating, and using a mix of on- and off-balance sheet funding for projects exceeding 10% IRR.

  • Productivity improvements and Manawa integration expected to deliver NZD 38 million in run-rate savings by FY2027 and $28M in cost synergies by FY27.

  • Dividend guidance is >50cps by FY31, with a payout policy of 80-100% of operating free cash flow.

Renewable development and technology

  • Leading geothermal expansion with plans to double output to nearly 7 TWh, including new investments at Tauhara and Te Mihi, and major projects like Te Mihi Stage 2 and Tauhara 2/3 underway.

  • Advancing 500 MW of battery storage, with 300 MW operational by 2026, a pipeline of 900-1,200MW by 2030, and the first 100MW online in Q1 CY26.

  • Wind and solar growth to be delivered via partnerships, joint ventures, and off-balance sheet structures, targeting 450 MW of solar and 500 MW of wind.

  • Retail strategy focuses on digital transformation, AI, and customer-centric innovation, aiming to reduce cost to serve to NZD 90 per customer by FY31 and grow demand flex to 65 MW.

  • Technology investments in data, automation, and trading optimization to drive efficiency and value across the portfolio.

Geothermal cost reduction strategy details?
Retail tech: how to achieve $90 cost to serve?
Capital allocation: funding growth vs. dividends?
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Frequently asked questions

Contact Energy Limited is a New Zealand energy company involved in the generation, distribution, and retail of electricity, as well as the provision of natural gas and LPG services. The company generates electricity primarily from renewable sources, including geothermal and hydroelectric power, and supplies energy to residential, commercial, and industrial customers across New Zealand. The company is headquartered in Wellington, New Zealand, and its shares are listed on the NZX and ASX.

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