MCY - Invests heavily in renewables; delivers strong performance

Tuesday 24th February 2026

HY26 Results

For the half year ended 31 December 2025

EBITDAF $537m

- Up 28% on HY25

- Up $119m on HY25

Earnings Before Interest, Tax, Depreciation, Amortisation and Fair-value movements (EBITDAF) was supported by above average hydro generation and lower operating costs from ongoing productivity initiatives, highlighting disciplined execution and portfolio strength.

NPAT $20M

- Up $87m on HY25

Net Profit After Tax (NPAT) was supported by higher EBITDAF, partly offset by changes in unrealised gains/losses on unhedged electricity derivatives.

DIVIDEND 10cps

- Up 4% on HY25

The interim dividend was 10 cents per share (cps). Full year guidance of 25 cps remains on track. The Dividend Reinvestment Plan (DRP) continues to be offered to shareholders.

FULL YEAR EBITDAF GUIDANCE $1.0b

Full year 2026 EBITDAF guidance remains on track due to strong renewable generation volumes, disciplined execution of new generation projects and focus on operating costs. Guidance may change and remains subject to any material events, significant one-off expenses or other unforeseen circumstances including changes to hydrological conditions.

RESULTS OVERVIEW

Mercury has delivered a strong HY26 performance and continued to invest in renewables at scale, with half ($270 million) of the company’s HY26 earnings reinvested in new and existing generation assets.

All three of Mercury’s major renewable developments, totalling $1 billion investment, are progressing on budget and on time. The new Ngā Tamariki Geothermal Station unit came online in January, while stage 2 of Kaiwera Downs Wind Farm and Kaiwaikawe Wind Farm are both due to begin generating in 2026.

Mercury Chief Executive Stew Hamilton said, “Our disciplined strategic execution is delivering a strong performance today, while enabling us to invest significantly in new renewable generation for New Zealand, helping meet future demand growth and build resilience.

“We are on track to deliver on our plan of adding 3.5TWh of new generation by 2030 (the equivalent of powering an additional 430,000 homes) through leveraging our strengths in wind and geothermal and our advantaged project pipeline.

“Our contributions are supporting the fastest rate of renewable generation development in history, helping power economic growth over the next two decades.

“We are also investing significantly in our existing assets, with Karāpiro Hydro Station upgrade complete and plans to invest $590 million in hydro refurbishment over the next decade.

“Enabling our customers to shift consumption and lower their costs is another key focus and we continue to provide additional support to our customers in need. “We are facing into energy system challenges with confidence, including actively shaping and contributing to solutions for gas and firming, while helping deliver a bright future for New Zealand powered by an increasingly renewable energy supply.”

OUTLOOK

“Our balance sheet remains strong, with capital headroom and prudent risk settings. This enables us to continue investing in high quality renewable generation assets and provides flexibility to deliver sustainable shareholder returns, value for our customers and New Zealand,” Mr Hamilton added.

BETTER TODAY, BUILDING TOMORROW, BRIGHTER TOGETHER

STRATEGIC OBJECTIVE – PROGRESS DURING HY26

GENERATION DEVELOPMENT UPLIFT

> Completed constructed of the new fifth unit at Ngā Tamariki Geothermal Station and began commissioning in January 2026. The $220m expansion will deliver an additional 390GWh p.a, equivalent to powering around 55,000 homes.

> Advanced construction of our $486m Kaiwera Downs Stage 2 Wind Farm, with first generation expected in FY26, full generation expected by the end of HY27.

> Advanced construction of our $287m Kaiwaikawe Wind Farm, with first and full generation expected in HY27.

> Lodged substantive application for our Puke Kapo Hau Wind Farm development (stage 2 of Mahinerangi Wind Farm).

CAPTURE ENERGY TRANSITION GROWTH

> Commenced 10-year contract with Fonterra to support electrification of its Waitoa site and contract for Edgecumbe begins from July 2026.

> Commenced long-term contracts with Visy and Whakatāne Mill.

> Progressed smart hot water control programme, on track to have 50K cylinders (20MW) under management this winter.

> Focused on targeting final investment decision on Whakamaru BESS by mid-FY27.

REBUILD SECTOR CONFIDENCE

> Supported BCG Energy to Grow report, released in late 2025; industry Powering Change relaunch in early 2026.

> Actively shaped and contributed to solutions for gas and firming challenges (including gas market transparency and supporting Huntly Firming Option) and boosting the hedge market to support vibrant competition (including supporting trading of super peak products).

> Supported efforts to streamline and speed up consenting, including inclusion of renewable electricity in draft RMA replacements; and in Fast Track priorities.

CONNECTED AND HIGH-PERFORMING CULTURE

> Embedded new strategic framework in business with measurement in place.

> Improved business performance by lifting Cultural Performance Index score by 5%.

> Revised our executive remuneration construct to ensure it incentivises the level of performance needed to deliver on our strategy and long-term shareholder value.

EARNINGS TRANSFORMATION

> Delivered strong HY26 EBITDAF performance and full year guidance remains on track.

> Reinvested 50% of HY26 earnings in new and existing generation assets.

> Focused on disciplined cost management, on track to deliver operating costs of $370 million in FY26.

ENDS

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