The Meridian Energy Ltd (ASX: MEZ) share price is in focus today after the company released its December 2025 operating report, showing a 16.3% lift in December generation volumes and significant growth in customer connections.
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What did Meridian Energy report?
- Total generation volume for December rose 16.3% year-on-year to 1,459 GWh, with hydro and wind both up.
- Average generation sales price in December dropped to $6.8 per MWh, 65% below the previous year.
- Retail sales volumes climbed 4.5% compared to December 2024, with residential segment sales up 26.4%.
- Total New Zealand customer connections increased 19.5% year-on-year to 457,336.
- Catchment inflows remained strong, with December at 123% of historical average and financial year-to-date inflows at 144%—the second highest on record.
What else do investors need to know?
December saw a period of plentiful rainfall across key catchments, leading to high hydro storage levels and extended periods of water spilling in both Waitaki and Waiau. As a result, wholesale electricity prices remained low, benefiting the market but leading to a lower realised price for Meridian's own generation.
National electricity demand for December climbed 4.3% from a year earlier, with New Zealand Aluminium Smelters' load also significantly higher. While Meridian's average price received fell, the company offset this with higher sales volumes and new customer growth, including the onboarding of ex-Flick customers.
What did Meridian Energy management say?
Chief Executive Mike Roan said:
We've begun 2026 in a very strong position when it comes to hydro storage. Inflows, current storage and remaining snowpack are all well above the long-term averages, which has meant we've had extended periods of spilling in both the Waitaki and Waiau catchments since early December… Overall, we're generating and selling more at this point of the financial year than we were a year ago. Generation volumes are 13% higher, and retail sales volumes 12% higher than the first half of the last financial year. Our customer numbers are also growing, with total connections 19.5% higher than in December 2024.
What's next for Meridian Energy?
Looking ahead, the company expects high hydro storage, positive inflows, and rising customer numbers to support operational momentum through summer. The summer outlook from Earth Sciences suggests higher than average temperatures across New Zealand and variable South Island rainfall—a scenario that management believes Meridian is well-placed to manage.
Meridian's focus will remain on retail growth, efficient operations, and adapting to fluctuating wholesale prices, aiming to convert strong hydrological conditions into lasting value for shareholders.
Meridian Energy share price snapshot
Over the past 12 months, Meridian Energy shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
