Vector (VCT) H2 2025 earnings summary

Executive summary

• Revenue from continuing operations rose 9% year-over-year to $894m NZD, with adjusted EBITDA up 16% to $401m NZD and underlying profit (excluding a $37m gas impairment) at $191.7m.

• Strategic focus remains on regulated electricity and gas networks, following divestments in gas trading and Elgas, and HRV sale announced post-balance date.

• Emissions reduction target surpassed, achieving a 55% cut in scope 1 and 2 emissions (excluding line losses) since 2020.

• CEO Simon Mackenzie to depart at end of 2025 after 17 years; CEO search nearing completion.

• Corporate costs reallocated to business units as part of ongoing operational focus.

Financial highlights

• Net profit after tax for continuing operations was $154.7m, including a $37m gas impairment; NPAT up 105% year-over-year.

• Operating cash flow increased 16% year-over-year.

• Gross capital expenditure declined 6%, mainly due to project timing; net capex down 15% to $260m NZD.

• Net debt stable at $2.15b, but economic net debt increased to $3.41b NZD; gearing ratio at 59%.

• Dividend of $0.25 per share (85% payout of free cash flow), within 70–100% policy range.

Outlook and guidance

• FY26 guidance: adjusted EBITDA $470m–$490m, gross CapEx $520m–$590m, capital contributions $180m–$230m.

• EBITDA growth expected from full-year impact of DPP4 electricity price path and continued network investment.

• CapEx increase linked to customer-driven growth and network investment.