Vector (VCT) H1 2026 earnings summary

Executive summary

• Group revenue increased 14%–16% year-over-year, primarily from higher electricity revenue under the new DPP4 regulatory period.

• Adjusted EBITDA from continuing operations rose 19% to approximately $240 million, driven by regulatory resets and higher allowable returns in electricity distribution.

• Net profit after tax was $113 million, down 4% due to lower capital contributions, higher depreciation, amortisation, and interest costs.

• Interim dividend set at 12.50 cents per share, reflecting confidence in performance.

• Discontinued gas trading operations and Eco-Products Group Limited were sold, with final proceeds received.

Financial highlights

• Adjusted EBITDA from electricity segment up 28% to $220 million year-over-year.

• Gas segment EBITDA flat at $24 million, with lower volumes and declining new connections.

• Gross capital expenditure was $223 million, down 15% from prior period; net CapEx at $126 million.

• Net cash flows from operating activities were $325.1 million, up from $276.9 million.

• Dividends paid during the period totaled $130 million.

Outlook and guidance

• Full-year adjusted EBITDA forecasted at $470–490 million.

• Gross capital expenditure guidance narrowed to $500–540 million for the year.

• Capital contributions expected between $180–215 million.

• Dividend payout for the full year will consider the 70% minimum policy.

• Commerce Commission's draft decision on DPP4 for gas distribution expected to impact future cash flows, with final decision due May 2026.