Meridian Energy reported record annual earnings for the year to June 30, 2026, driven by exceptional hydrological conditions that lifted hydro generation to 12,571 gigawatt-hours, a 14% increase on the prior year.
The company posted underlying net profit after tax of NZD 308 million, up 450% from NZD 56 million in FY25, while statutory NPAT recovered to NZD 130 million from a NZD 452 million loss a year earlier. EBITDAF surged 72% to NZD 1.05 billion, supported by a 50% rise in energy margins to NZD 1.47 billion. Operating cash flow increased 154% to NZD 810 million, with a 93% conversion rate from EBITDAF.
Hydro generation benefited from catchment inflows 22% above historical averages, while wind output reached a record 1,905 gigawatt-hours. The company commissioned the 100-megawatt Ruakākā Battery, which captured a NZD 3,114 per megawatt-hour price spike on August 6, 2026, and is expected to deliver a 20% gross return on its NZD 186 million investment.
Meridian raised its final ordinary dividend by 8.4% to 16.10 cents per share, bringing the full-year payout to 22.50 cents, an increase of 7.1% year-over-year. The payout ratio normalized to 83% from 230% in FY25. Net debt to EBITDAF improved to 1.6 times from 2.5 times, with drawn debt at NZD 1.9 billion.
Capital expenditure rose 35% to NZD 261 million, including NZD 172 million in growth projects and NZD 89 million in maintenance. FY27 capex is forecast at NZD 370 million to NZD 410 million, with EBITDAF guidance of NZD 1.04 billion to NZD 1.12 billion.
The company outlined a development pipeline totaling 15.3 terawatt-hours across 6,100 megawatts of projects, including the Ruakākā Solar and Te Rahui Stage 1 ventures. Retail customer connections grew 12% to 455,000, with sales volumes up 14% year-over-year. Safety metrics showed a rise in employee injury rates but an improvement in contractor incidents.
Chief Executive Mike Roan said the business was stronger and better positioned to create value amid improved hydrology and operational resilience.
