The Meridian Energy Ltd (ASX: MEZ) share price is in focus after the company's March 2026 monthly report revealed retail sales volumes increased 11.4% year-on-year, while national electricity demand jumped 4.5% compared to March 2025.
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What did Meridian Energy report?
- Retail sales volumes for March 2026 rose 11.4% year-on-year, with residential segment sales up 27.8%.
- Customer numbers increased 17.7% over the past year, reaching 464,985 connections.
- March generation was 30.7% higher than the same month last year, although average generation price fell by 51.5%.
- National hydro storage remained robust at 106% of historical average, despite monthly inflows at 74% of average.
- FY26 capital expenditure guidance revised down to $280–$310 million (from previous $330–$360 million).
- End of Q3 saw Waitaki catchment storage 39.9% above the previous year, supporting future supply.
What else do investors need to know?
The report highlights a continued fall in ASX electricity forward prices during Q3, reflecting the impact of increased renewable generation investment and new system security agreements. Meridian's strong March and quarterly results included higher demand from New Zealand Aluminium Smelters (NZAS), whose average March load climbed to 575MW from 524MW last year.
Operating costs have increased 4.9% compared to Q3 last year, while capital expenditure year-to-date is up 182.6%, mainly due to substantial investments in ongoing projects. Meridian retains robust water storage levels ahead of winter, which positions the business well for seasonal shifts in demand.
What did Meridian Energy management say?
Meridian CEO Mike Roan said:
We've maintained momentum through the March quarter after a very strong half-year result and the lakes are looking really good as we get closer to winter. These things can change, however at this stage we have 40% more water than we did at the same time last year.
What's next for Meridian Energy?
Looking ahead, management expects further benefits from ongoing investment across the renewables sector, which is already softening electricity prices for both Meridian and its customers. The company's strong storage position and expanded customer base provide confidence as winter approaches, and Meridian is well placed to manage any seasonal volatility.
Guidance for FY26 capital expenditure has been revised to a lower range, reflecting tight cost management while progressing both operational and growth priorities. Investors can find regular lake level updates and explore Meridian's operational data on its website.
Meridian Energy share price snapshot
Over the past 12 months, Meridian Energy shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.
