The Mercury NZ Ltd (ASX: MCY) share price is in focus today after the company's December 2025 quarter update showcased strong hydro inflows, lower wholesale electricity prices, and progress on its new geothermal generation project.
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What did Mercury NZ report?
- Waikato hydro generation rose by 23% to 1,072 GWh for the quarter
- Wholesale spot electricity prices in Auckland averaged $40/MWh, down due to high hydro inflows
- Wind generation up 6% year-on-year; geothermal generation down 9% due to planned maintenance
- 223,000 customer accounts now use two or more Mercury products, up 10% from last year
- New geothermal OEC5 unit commissioning commenced in January 2026
What else do investors need to know?
Mercury NZ's operational performance benefited from national hydrological inflows near record levels, resulting in above-average hydro lake storage. Notably, Taupō storage remained elevated, providing a strong base for future generation.
The company's bundling strategy is paying off, with telco and mobile connections up by 30,000 compared to the same period last year. Commercial and industrial electricity yields were slightly lower, with some contracts repricing to better reflect 2026 forward electricity curves.
What's next for Mercury NZ?
Looking ahead, Mercury NZ plans to finish full commissioning of the Ngā Tamariki OEC5 geothermal expansion by the end of the third quarter. Once online, this project is expected to add 390 GWh of annual generation and boost net output by 46 MW, supporting reliability and renewable supply.
The company remains focused on expanding integrated energy and telco customer offerings, supported by strong hydro reserves and continued investment in renewable projects.
Mercury NZ share price snapshot
Over the past 12 months, Mercury NZ shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
