The Genesis Energy Ltd (ASX: GNE) share price is in focus after the company delivered strong first quarter FY26 results, with hydro generation jumping by 218 GWh and total customer numbers nudging higher.
What did Genesis Energy report?
- Hydro generation reached 904 GWh, up 218 GWh compared to the prior corresponding period (pcp), driven by above-average rainfall and strong operational availability.
- Thermal generation fell to 784 GWh, down 498 GWh on pcp, reflecting reduced reliance on coal and gas due to better hydro performance and portfolio optimisation.
- Total electricity retail sales reached 1,874 GWh, an increase of 188 GWh on pcp.
- Total customer numbers rose to 502,765, a 0.9% increase on pcp.
- LPG retail sales totalled 12.3 kt, while gas retail sales were 2.1 PJ for the quarter.
- Genesis ended the quarter with lake levels at 113% of average, up from 102% at 30 June, improving water security heading into summer.
What else do investors need to know?
Genesis continued to progress strategic projects, including the Huntly battery energy storage system (BESS), with foundations in place for equipment deliveries by December and transformer manufacturing on track for commissioning in Q1 FY27. Digital investments remain on schedule, with the billing and CRM re-platform's first release expected to go live by the end of October, covering around 50,000 customer connections.
The company is pushing ahead on biomass supply, securing agreements with Carbona and Foresta, and $6 million in EECA funding to support development. Leeston Solar Farm has been completed, with Genesis now taking full ownership and control of the site.
What's next for Genesis Energy?
Looking forward, Genesis is set to provide more detail on its Gen35 strategy, capital allocation, and long-term earnings plans during its Investor Day in Taupo in late November. The company also remains on track to deliver its three "Big Rock" digital initiatives, as previously outlined in its $145 million investment program.
Ongoing maintenance and outages, including the three-month planned outage at Huntly Unit 5, are progressing to schedule. Management notes that Genesis remains well-positioned to deliver on its FY26 guidance, given strong hydro conditions and continued progress across its renewable and digital projects.
Genesis Energy share price snapshot
Genesis Energy shares have risen 17% over the past year, outpacing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
