Meridian Energy Ltd reported a sharp rebound in financial performance for the year ended June 30, 2026, with operating cash flow surging 153% year-over-year to NZ$810 million. EBITDAF rose 72% to NZ$1.05 billion, while net profit after tax increased by NZ$582 million, the company said in its full-year results released late Tuesday.
The turnaround follows a decade-low performance in FY25, with management attributing the recovery to improved hydrology, higher customer growth and operational efficiencies. Total customer connections rose 12%, supported by the acquisition of Flick Electric, while sales volumes increased 14%. Annual hydro inflows reached 122% of average, and storage levels rose 20% during the year, enabling the addition of 30 megawatts of hydro capacity.
Capital expenditure for FY26 totaled NZ$261 million, up 35% from the prior year, as the company advanced projects including the Ruakākā Solar and Battery initiatives. Ruakākā Battery, now operational, has enabled high-voltage direct current transfers exceeding 1,100 megawatts, a new operational benchmark. The battery investment of NZ$186 million is expected to generate a 20% gross return on capital, contributing approximately NZ$40 million in EBITDA annually.
Dividends were raised by 8.4% for the final payout to NZ$0.161 per share, bringing the full-year dividend to NZ$0.225 per share, a 7.1% increase. The company’s share price closed 1.96% higher at NZ$4.69 on Tuesday, with a dividend yield of 4.29%.
For FY27, Meridian guided EBITDAF between NZ$1.04 billion and NZ$1.12 billion, with operating expenses forecast to rise 2.5% to 4% to NZ$321-326 million. Capital expenditure is expected to increase to NZ$370-410 million, reflecting ongoing investments in renewable capacity and grid stability. Peak net debt is projected to approach 3.0 times EBITDA before easing into a 2.0 to 3.0 times range by FY2031.
Key projects in progress include the Mt Munro wind farm, with a final investment decision expected in December, and the Te Rere Hau expansion, slated for a third-quarter 2027 decision. The company’s long-term capex envelope from FY2024 to FY2030 totals NZ$3 billion, with peak net debt expected to normalize by FY2031.
CEO Mike Roan said the results demonstrated a stronger, more resilient business positioned for value creation in a renewable-dominated electricity system. CFO Mandy Simpson highlighted the 93% cash conversion of EBITDAF into pre-tax and interest cash flows as a key financial strength.
