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Mercury NZ trading margin jumps 33% as renewables drive Q4 result

Mercury NZ delivered a strong Q4 with trading margin up 33% and progress in renewable energy projects.

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Laura Stewart
Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein
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The Mercury NZ Ltd (ASX: MCY) share price is in focus after reporting a robust fourth quarter, with trading margin up 33% to $390 million and higher renewable generation volumes compared to the prior corresponding period.

Lakes in the form of footsteps among the green trees, indicating steps towards a healthier planet.

Image source: Getty Images

What did Mercury NZ report?

  • Trading margin for Q4 was $390 million, up 33% on the same quarter last year.
  • Year-to-date (YTD) trading margin rose $269 million to $1,421 million.
  • Q4 generation volume climbed 339GWh to 2,344GWh; YTD up 1,163GWh to 9,070GWh.
  • Hydrological inflows for Q4 were at the 61st percentile, slightly lower than 79th percentile PCP (YTD: 83rd percentile, up from 12th PCP).
  • All turbines at the Kaiwera Downs Stage 2 Wind Farm are now installed, with reliability testing underway.
  • Fast-track consent was granted for Puke Kapo Hau Wind Farm, strengthening Mercury's renewable pipeline.

What else do investors need to know?

Mercury highlighted continued momentum in renewable developments and asset renewals. Notably, the Kaiwaikawe Wind Farm remains on schedule, starting first generation from six installed turbines in July.

The company also launched Flex Rates, a new time-of-use electricity plan, giving retail customers more control over their energy bills. Mercury's May Geothermal Investor Day showcased its geothermal platform, with more than 1 TWh entering feasibility and $75 million committed to appraisal drilling.

What's next for Mercury NZ?

Looking ahead, Mercury expects all turbines at Kaiwera Downs Stage 2 Wind Farm to be handed over by the end of August, with the Kaiwaikawe Wind Farm fully operational in the first half of FY27. The company's wind platform is designed to deliver projects at scale, on time and within budget.

Mercury also plans to continue investing in renewable generation projects and asset renewals, strengthening its position as a leader in 100% renewable energy production across hydro, geothermal, and wind.

Mercury NZ share price snapshot

Over the past 12 months, Mercury NZ shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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