Mercury NZ: FY26 earnings rise on renewable rollouts

Mercury NZ lifts net profit and dividend on the back of new renewable generation projects and disciplined investment.

The Mercury NZ Ltd (ASX: MCY) share price is in the spotlight today after the company reported a 32,000% surge in net profit to NZ$321 million and an 18th straight year of ordinary dividend growth.

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?

  • Revenue: NZ$3,224 million, down 8% on FY25
  • Net Profit After Tax (NPAT): NZ$321 million, up markedly from the prior year
  • EBITDAF: NZ$1,068 million, up 36% year-on-year
  • Final dividend: 17.0 NZ cents per share, fully imputed; total FY26 dividend 27.0 NZ cents per share
  • Net tangible assets: NZ$3.62 per share, up from NZ$3.41

What else do investors need to know?

Mercury continued its impressive run of investments in renewable generation, completing three projects in 2026 and committing NZ$710 million (66% of operating earnings) to new and existing assets. Major developments included expanding the Ngā Tamariki Geothermal Station and commissioning the Kaiwera Downs 2 and Kaiwaikawe wind farms.

The company also made strides in supporting New Zealand's energy transition, investing NZ$53 million for a 12.7% stake in Datagrid NZ and securing a 140MW power purchase option agreement with the data centre operator. Mercury's Board approved the next big project—the Puke Kapo Hau (Mahinerangi Stage 2) Wind Farm—positioned to become the nation's largest.

On the customer front, Mercury launched Flex Rates, empowering eligible customers with flexible, time-of-use plans. It also extended support to social retailers and community groups.

What's next for Mercury NZ?

Looking ahead, Mercury is preparing to deliver new generation from recently completed assets and progress construction on the Puke Kapo Hau Wind Farm, which the board approved in August. The company's FY27 guidance points to EBITDAF of NZ$1,075 million and an ordinary dividend of 29.0 NZ cents per share.

Management highlighted a strong balance sheet and room for further renewable investment, upholding plans to provide sustainable value to shareholders while supporting national growth and decarbonisation.

Mercury NZ share price snapshot

Over the past 12 months, Mercury NZ shares have declined 3%, trailing the All Ordinaries Index (ASX: XAO), which is flat 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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