Meridian Energy Ltd. reported record annual earnings for the 2026 fiscal year, with underlying net profit after tax surging 450% to NZD 308 million as hydrological conditions boosted hydro generation and energy margins.
The company's EBITDAF reached NZD 1.051 billion in FY26, a 72% increase from NZD 611 million a year earlier, while operating cash flow more than doubled to NZD 810 million. Energy margins expanded 50% to NZD 1.471 billion, supported by a 14% rise in hydro generation to 12,571 GWh and a 154% increase in operating cash flow conversion.
Net profit after tax recovered to NZD 130 million from a NZD 452 million loss in FY25, reflecting improved hydrology and reduced derivative purchase costs. The company declared a final ordinary dividend of 16.10 cents per share, lifting the full-year payout to 22.50 cents per share, an increase of 7.1% year-over-year.
Capital expenditure rose 35% to NZD 261 million, with growth projects including the Ruakākā Battery, a 100MW/200MWh storage system commissioned in FY26. The battery contributed to a 20% gross return on capital, with EBITDA of approximately NZD 40 million on a NZD 186 million investment. Catchment inflows reached 122% of historical averages, the highest since records began, while Lake Pūkaki storage started the new financial year at 131% of average levels.
FY27 guidance projects EBITDAF between NZD 1.04 billion and NZD 1.12 billion, with capital expenditure forecast at NZD 370 million to NZD 410 million. Operating expenses are expected to rise 2.5% to 4% to NZD 321 million to NZD 326 million. The company maintained a net debt to EBITDAF ratio of 1.6 times at year-end, an improvement from 2.5 times in FY25.
Meridian's renewable development pipeline totals 15.3 terawatt-hours across 6,100 megawatts of projects, including solar and wind initiatives under construction. Customer connections grew 12% to 455,000, with mass market sales contributing NZD 217 million to energy margins. The company also expanded its EV charging network by 70 new chargers, bringing the total to 519 charge points nationwide.
