Mercury NZ Limited has delivered a significantly stronger third quarter result, with trading margin reaching $325 million, representing a 27 percent increase on the prior comparative period. This performance has prompted the company to upgrade its full year FY2026 EBITDAF guidance to $1.05 billion, a material revision that reflects both operational excellence and favorable market conditions across New Zealand’s energy sector.
The quarterly result was underpinned by higher portfolio renewable generation and disciplined trading margin management. Generation volume reached 1,997 GWh for the quarter, up 286 GWh compared to the prior year period, while year-to-date generation volume has increased by 824 GWh to 6,726 GWh. These figures are particularly noteworthy given that hydrological inflows reached only the 76th percentile in the quarter, up from a record low in the prior year. The year-to-date inflow position improved substantially to the 86th percentile, compared to just the 3rd percentile in the prior comparative year, providing a significant tailwind for a hydroelectricity-dependent generator.
The company achieved several operational milestones during the quarter that position it well for future growth. The Ngฤ Tamariki geothermal station’s OEC5 unit successfully completed its reliability run on schedule and on budget, with expected annual generation increases of 390 GWh and net output gains of 46 megawatts. Additionally, the company signed a contract with international technology provider ANDRITZ to support the next phase of its hydro refurbishment programme, securing long-term resilience across its existing asset base. The Kaiwera Downs Stage 2 wind farm also began generating from its first 11 turbines ahead of schedule in April, demonstrating the company’s continued ability to execute on its development pipeline.
A particularly significant development was the power purchase option agreement signed with Datagrid New Zealand, securing 140 megawatts of capacity to support new demand and artificial intelligence infrastructure growth across the country. This arrangement reflects both the strong demand environment for renewable energy and Mercury’s strategic positioning to capitalize on emerging demand drivers in the New Zealand energy market.
For investors, these results indicate that Mercury is successfully executing across multiple strategic priorities simultaneously. The company is delivering generation growth through both development projects and optimized portfolio management, while also investing in asset renewal to support long-term performance. The guidance upgrade signals management confidence in sustaining this momentum through the remainder of the financial year.
The company will host a Geothermal Investor Day on 14 May 2026, where it plans to discuss the strength of its geothermal platform and future opportunities in greater detail. Investors should monitor that event for more granular insights into the company’s long-term growth trajectory. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Mercury NZ Limited (ASX: MCY)
Mercury NZ Limited generates approximately 16% of New Zealand’s total electricity from renewable sources including hydro, geothermal, and wind power. The company operates as a generator and retailer of electricity, gas, broadband and mobile services to residential and business customers in New Zealand. It operates through three main business segments: Generation/Wholesale, Customer, and Other divisions.
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