Contact Energy (CEN) H2 2026 earnings summary

Executive summary

• FY26 marked a transformational year with the completed acquisition and integration of Manawa Energy, driving a 31% rise in EBITDAF to $1,011M and a 62% increase in net profit to $423M, with renewable output up 37% to 98% of total generation.

• Strategic investments advanced in batteries, solar, and wind projects, supporting security of supply and decarbonization, including the commissioning of Glenbrook-Ohurua Battery 1 and construction of Battery 2 and Glorit Solar.

• Customer initiatives expanded, offering discounted or free off-peak electricity to 165,000 households and NZD 5 million in community support through The Good Initiative.

• The market achieved 93% renewable generation, the highest since the 1990s, driven by high hydro inflows and sector investment.

• Total shareholder return was 9% for FY26, with a total dividend of 40cps declared.

Financial highlights

• EBITDAF reached $1,011M, up 31% year-over-year, with operating free cash flow up 49% to $648M and profit per share up 27% to 41.5 cps.

• Net profit after tax increased 62% to $423M, and total assets expanded 56% to $10,661M.

• Dividend per share rose 3% to 40cps, representing 65% of FY26 operating free cash flow.

• Return on invested capital improved to 7.5%, up from a four-year average of 4.9%-5.9%.

• Net debt at year-end was $1,011M, with S&P adjusted net debt to EBITDAF reduced from 2.3x to 2.1x.

Outlook and guidance

• FY27 normalized EBITDAF expected at $1,045M, with underlying operating result at $1,064M before integration and platform investment.

• Dividend for FY27 expected to increase to 42cps, a further 5% rise, with payout expected to be imputed up to ~70%.

• Retail net price expected to reduce by 2% to NZD 171 per MWh, reflecting lower wholesale input costs.

• Major planned geothermal outages (Wairakei and Te Mihi 2) will reduce output by 428 GWh, partially offset by new capacity.

• Growth capex guidance for FY27 is $460–470M, focused on Te Mihi Stage 2 and Glenbrook-Ohurua Battery 2.