The Contact Energy Ltd (ASX: CEN) share price is in focus after the company posted higher mass market electricity and gas sales and reported lower generation costs for February 2026.
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What did Contact Energy report?
- Mass market electricity and gas sales rose to 295GWh (Feb 2025: 237GWh)
- Average customer netback held steady at $160.23/MWh (Feb 2025: $159.57/MWh)
- Contracted wholesale electricity sales reached 816GWh (Feb 2025: 632GWh)
- Unit generation cost dropped to $41.70/MWh (Feb 2025: $70.95/MWh)
- Electricity generated (or acquired) totalled 809GWh (Feb 2025: 675GWh)
- Average electricity sales price rose to $380.72/MWh (Feb 2025: $341.24/MWh)
What else do investors need to know?
Contact Energy's wholesale business saw a notable fall in unit generation costs and higher electricity sales, which points to improving operational efficiency. However, electricity and steam net revenue per megawatt hour declined to $122.35 from $133.15 a year ago, reflecting some pricing or mix changes.
Hydro storage on 16 March 2026 was healthy, with South Island at 98% and North Island at 164% of mean levels. February 2026 inflows into the Clutha catchment, though, were 73% of the mean, following strong inflows in previous months.
Contact is progressing with three major renewable projects, including Glenbrook-Ohurua Battery (Q1 CY26), Kōwhai Park Solar (Q2 CY26), and Te Mihi Stage 2 geothermal (Q3 CY27).
What's next for Contact Energy?
Contact Energy is firmly focused on expansion and transition to renewables, with several large projects under construction and over $1 billion invested in new solar, battery, and geothermal facilities through 2027.
Equity analysts' FY26 EBITDAF forecasts have been summarised, with consensus in the $965 million to $995 million range, depending on Manawa integration costs. The company is not endorsing individual forecasts.
Contact Energy share price snapshot
Over the past 12 months, Contact Energy shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.
