Highlights:

• EBITDAF surged 36% to NZ$1.068 billion, revealing stronger underlying earnings momentum.
• Operating cash flow jumped 58% to NZ$762 million, strengthening growth funding capacity.
• FY27 EBITDAF guidance of NZ$1.075 billion points to another potentially resilient year.

FY26 Results Signal Stronger MomentumMercury NZ Limited (ASX: MCY) announced its FY26 full-year results on 18 August 2026, reporting a sharp improvement in earnings as stronger hydro generation, new renewable capacity and disciplined cost management lifted operating performance. Revenue was NZ$3.224 billion, while net profit after tax reached NZ$321 million.Renewable Expansion Gains PaceMercury allocated 66% of its FY26 EBITDAF, equivalent to NZ$710 million, towards expanding and maintaining its renewable energy portfolio. In 2026, the Ngā Tamariki geothermal expansion, Kaiwera Downs 2 Wind Farm and Kaiwaikawe Wind Farm began producing electricity, with each project expected to become fully operational before year-end. Together, they represent about NZ$1 billion of investment and approximately 1.1TWh of additional annual renewable generation. 

The company also approved the NZ$506 million Puke Kapo Hau wind project in August. Once Mahinerangi Stages 1 and 2 are complete, the combined wind farm is expected to have 228MW of capacity and generate 646GWh annually. Dividend Growth ContinuesMercury announced a fully imputed final payout of NZ$0.17 per share, taking its total ordinary dividend for FY26 to NZ$0.27 per share and marking the company’s 18th straight year of higher ordinary shareholder distributions. The company is guiding for NZ$0.29 per share in FY27. Outlook: Can Growth Remain Sustainable?Mercury enters FY27 with S&P-adjusted debt-to-EBITDA of around 2.0 times and substantial renewable projects moving through its pipeline. Management expects new generation and continued cost discipline to support FY27 EBITDAF of NZ$1.075 billion. However, hydrological conditions remain an important variable for generation and earnings. 

Beyond FY27, Mercury is targeting FY30 EBITDAF of NZ$1.2–NZ$1.25 billion while planning 3.5TWh of new generation by 2030, positioning renewable expansion as the central driver of its next growth phase.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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