Meridian Energy reported a record financial year in FY2026, driven by exceptional hydro inflows and asset revaluations, as the New Zealand utility posted EBITDAF of NZD 1.05 billion—up 72.1% year-over-year and 16% above FY2024 levels.
Operating cash flow surged 153.1% to NZD 810 million, while net profit after tax increased by NZD 582 million from the prior year. The company attributed the performance to annual hydro inflows reaching 122% of average levels, with storage rising 20% during the period. Lake levels in June and July were twice those recorded in the same months of 2024.
Dividends were increased for the full year, with a final payout of NZD 0.161 per share—an 8.4% rise—and a full-year dividend of NZD 0.225 per share, up 7.1%. The final dividend carried 90% imputation credits. Cash conversion remained robust at 93% of EBITDAF, while net debt rose 11% to nearly NZD 1.7 billion despite a 1.6 times net debt-to-EBITDA ratio, an improvement from 2.5 times in FY2025.
Capital expenditure totaled NZD 261 million, a 35% increase from FY2025, as the company advanced projects including the Ruakākā Solar and Battery initiative, which is expected to deliver a 20% gross return on capital. Operational metrics showed a 12% rise in customer connections and a 14% increase in mass market sales volumes, contributing NZD 217 million to revenue.
Guidance for FY2027 was raised, with EBITDAF projected between NZD 1.04 billion and NZD 1.12 billion. Operating expenses are expected to rise 2.5% to 4% to NZD 321-326 million, while capital expenditure is forecast at NZD 370-410 million. Peak net debt is anticipated to reach just over 3.0 times EBITDA before stabilizing within the 2-3 times range by FY2031.
Meridian’s share price rose 1.96% to close at NZD 4.69, with a dividend yield of 4.29% and a 52-week range of NZD 4.37 to NZD 5.33.
