The Contact Energy Ltd (ASX: CEN) share price is in focus after the energy giant reported a 27.8% surge in net profit to $423.4 million, even as total revenue fell 5.7% to $3.24 billion.
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What did Contact Energy report?
- Revenue from continuing operations: $3,242.5 million, down 5.7% from prior year
- Net profit after tax: $423.4 million, up 27.8%
- Final dividend: 24.0 NZ cents per share, fully imputed at 24%
- Net tangible assets per share: $4.12, up from $2.87
- Total capital spend towards renewable development: $364 million
What else do investors need to know?
Contact Energy completed the $2.6 billion acquisition of Manawa Energy in July 2025, nearly tripling its number of hydro generation sites across New Zealand. The Manawa deal boosted Contact's net tangible assets and has diversified its energy portfolio by location and fuel type, strengthening overall resilience.
During the year, Contact shut its last gas-fired baseload plant, TCC, accelerating its efforts towards 98% renewable generation and cutting Scope 1 and 2 emissions by 69% from 2021 levels. The company also completed its first grid-scale battery (Glenbrook Ohurua Battery 1) and made progress on new solar and geothermal projects.
What's next for Contact Energy?
Looking forward, Contact plans to continue advancing its "Contact31+" strategy, which aims for net zero energy generation emissions by 2035. The business is currently building new solar farms and a second, larger grid-scale battery, and investing in additional geothermal options.
Contact highlighted the ongoing transition as New Zealand electrifies its economy. Management flagged ongoing investment in renewables and flexibility solutions to capitalise on rising demand and reduce reliance on thermal generation.
Contact Energy share price snapshot
Over the past 12 months, Contact Energy shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 5% over the same period.
