Highlights

  • Mercury NZ shares rose 3.41% to AUD 5.46 on 22 April 2026, amid a positive reaction to the company’s Q3 FY26 trading update.
  • The company upgraded its FY2026 EBITDAF guidance to AUD 1.05 billion.
  • Trading margin for the third quarter reached AUD 325 million, a 27% increase on the prior comparative period (pcp).
  • Total generation volume for the quarter grew to 1,997 GWh, up 286 GWh from the pcp.
  • Hydrological inflows significantly improved, reaching the 76th percentile compared to the record-low 3rd percentile in the pcp.
  • Major operational milestones achieved, including the successful opening of the Ngā Tamariki geothermal unit (OEC5) and early generation from Kaiwera Downs Stage 2 wind farm.

Mercury NZ Ltd (ASX:MCY) saw its share price lift 3.41% to AUD 5.46 during the afternoon session on 22 April 2026. Today’s move follows the release of the company’s trading update for the three months ended 31 March 2026, which showcased favourable operational momentum, higher renewable generation, and disciplined portfolio management. The market responded favourably to the company's decision to upgrade its full-year FY2026 EBITDAF guidance to AUD 1.05 billion.

Mercury is a major New Zealand-based energy company with generation assets producing electricity from 100% renewable sources, including hydro, geothermal, and wind. Beyond generation, Mercury operates as a retailer of electricity, gas, broadband, and mobile services. The company is listed on both the New Zealand and Australian Stock Exchanges (ticker: MCY), with the New Zealand Government maintaining a minimum 51% shareholding.

Operational Momentum and Generation Growth

The third quarter performance was characterised by robust growth in generation volumes, which totaled 1,997 GWh, an increase of 286 GWh compared to the prior comparative period. This growth was underpinned by a dramatic improvement in hydrological conditions; inflows were at the 76th percentile for the quarter, a stark contrast to the 3rd percentile recorded during the pcp.

"Mercury delivered a favourable third quarter, with higher renewable generation and disciplined portfolio management supporting a trading margin of AUD 325 million, up 27% on pcp," said Mercury Chief Executive Stew Hamilton.

The company continued to execute on its renewable development and asset renewal programmes:

  • Geothermal: The Ngā Tamariki geothermal station’s new OEC5 unit was successfully opened and has completed its reliability run. Delivered on time and on budget, the unit is expected to increase site generation by 390 GWh per annum and net output by 46 MW.
  • Wind: First generation from 11 turbines at the Kaiwera Downs Stage 2 wind farm commenced in April, ahead of the original schedule.
  • Hydro: A contract was signed with international technology group ANDRITZ to support the long-term resilience and performance of Mercury's hydro asset base.
  • Strategic Partnerships: Mercury signed a 140 MW power purchase option agreement with Datagrid New Zealand, a move designed to enable new demand and support AI infrastructure growth in New Zealand.

Financial Performance and Outlook

Year-to-date performance has been equally favourable, with the trading margin increasing by AUD 172 million to AUD 1,031 million. The company's disciplined approach to managing its portfolio and renewable energy assets has provided the confidence for management to upgrade its FY2026 EBITDAF guidance to AUD 1.05 billion.

Mercury continues to focus on its strategic priorities, leveraging its geothermal platform and renewable development pipeline to drive long-term value. Investors can expect further insights into the company’s geothermal capabilities and future growth opportunities at the upcoming Geothermal Investor Day, scheduled for 14 May 2026.