Vector, New Zealand’s largest energy infrastructure company, reported a 55% year-over-year increase in full-year FY26 profit to NZ$234 million, driven by a regulatory reset and operational efficiencies.
The company attributed the profit growth to a regulatory reset that allowed higher returns on its regulated assets, alongside cost reductions and improved asset utilization. Vector’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose 12% to NZ$612 million for the year ended June 30, 2025.
Chief Executive Officer Simon Mackenzie highlighted the regulatory framework as a key enabler of the company’s financial performance. "The reset provided greater clarity and stability, supporting investment and operational improvements," Mackenzie said in a statement.
Vector’s regulated asset base expanded by 5% during the period, contributing to higher revenue streams. The company also noted a 3% increase in electricity distribution volumes, reflecting steady demand in its core markets.
Net debt declined by NZ$150 million to NZ$2.1 billion, improving the company’s leverage ratio to 4.8x from 5.2x a year earlier. Vector maintained its dividend policy, declaring a final dividend of NZ$0.12 per share, in line with guidance.
Analysts at Forsyth Barr noted the results were in line with expectations, citing the regulatory reset as a structural tailwind. "The regulatory environment remains supportive, and Vector’s cost discipline is evident," the firm said in a research note.
Vector operates New Zealand’s largest gas pipeline network and a significant electricity distribution system, serving over 1.5 million customers.
