Meridian Energy (MEL) H1 2026 earnings summary

Executive summary

• Strong first-half performance with record wind and hydro generation, customer growth, and favorable weather, driving a significant turnaround in NPAT to $227 million from a $121 million loss in the prior year.

• Achieved record interim EBITDAF of $506 million, up 97% year-over-year, supported by higher customer and financial contract sales, lower purchase and demand response costs, and increased generation volumes.

• Retail sales volumes grew 16% year-over-year, with customer connections up 13% since June 2025 and market share rising from 17.5% to 19.5%.

• Significant investments underway and planned in solar and wind projects, aiming to add over 1.3 TWh of renewable generation in the next 12 months.

• Focus on customer service and technology migration, with the Kraken platform rollout progressing to enhance customer experience.

Financial highlights

• Operating cash flow for H1 FY26 was $336 million, up $286 million from H1 FY25 and 11% higher than H1 FY24.

• EBITDAF reached $506 million, up 97% year-over-year and 14% higher than H1 FY24.

• Underlying NPAT was $143 million, compared to a $5 million loss in the prior year.

• Interim dividend increased 4% to 6.40 cents per share, imputed at 85%, with a 2% DRP discount.

• Net debt to EBITDAF improved to 1.9x from 2.5x in June; net debt at December 2025 was $1,655 million.

Outlook and guidance

• Full-year EBITDAF guidance unchanged at $311–316 million, with forecasts at the higher end.

• CapEx expected to be $330–360 million for the year, with higher spend in H2.

• Kraken customer migration expected to complete by October 2026, reducing dual retail system costs by 2027.

• Anticipated investment decisions on Mt Munro, Te Rere Hau, and Te Rahui Solar Farm Stage Two in the next 12 months.

• Ongoing focus on expanding renewable generation and maintaining a 30% market share.