The Meridian Energy Ltd (ASX: MEZ) share price is in focus after the company's September 2025 monthly operating report revealed hydro storage surged to 110% of historical average and retail sales volumes jumped 18.5% year-on-year.
What did Meridian Energy report?
- National hydro storage climbed from 79% to 110% of historical average as of 6 October 2025.
- September total inflows were 181% of average; Waiau catchment inflows reached 201% of average.
- Waitaki catchment water storage ended September at 91% of its historical average.
- Retail sales volumes in September were up 18.5% versus a year ago.
- Generation for Q1 FY26 was 15.1% higher than Q1 last year, while average prices received dropped 56.9%.
- Operating costs for Q1 fell 5.5% year-on-year; total capital expenditure dropped 6.0%.
What else do investors need to know?
September's warm and wet weather delivered strong hydro inflows, with above-average rainfall particularly in western regions of New Zealand. This supported higher generation levels and a material lift in water storage across key catchments.
Customer growth has been strong, with Meridian's customer numbers rising 21.2% since last year. Retail segment growth was led by the residential market (up 32% including Flick customers), but all business segments saw higher sales volumes.
National electricity demand increased 8.5% year-on-year in September, while New Zealand Aluminium Smelters' load also rebounded as Meridian wound back its largest demand response call.
What's next for Meridian Energy?
Meridian sees the spring and summer period shaped by neutral El Niño conditions and a La Niña watch, which could mean above-average temperatures and variable rainfall across New Zealand. This can affect inflows and hydro generation, but current lake levels are healthy.
Looking ahead, Meridian's focus is on supporting retail growth and maintaining cost discipline, with further investment in core hydro and wind assets. Weekly lake storage updates and operating data are available on the company's website for those wanting more detail.
Meridian Energy share price snapshot
Meridian Energy shares have declined 4% over the past year, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
