Meridian Energy has reported a robust turnaround with a NZD 227 million net profit after tax for the first half of 2026, driven by record wind generation and strong hydro inflows. The company also raised its interim dividend and advanced multiple renewable projects.
- Net profit after tax of NZD 227 million, reversing prior year loss
- EBITDAF nearly doubled to NZD 506 million on strong energy margin growth
- Interim dividend increased to 6.40 cents per share with a 2% DRP discount
- Record retail sales volumes up 12%, aided by Flick Energy acquisition
- Progress on key renewable projects including solar farms and wind repowering
Strong Financial Rebound
Meridian Energy has delivered a striking recovery in its interim results for the six months ended 31 December 2025, posting a net profit after tax (NPAT) of NZD 227 million compared to a loss of NZD 121 million in the same period last year. This turnaround was underpinned by a near doubling of EBITDAF to NZD 506 million, fuelled by a 59% increase in energy margin driven by record wind generation and the second-best lake inflows on record.
Operating cash flows surged to NZD 336 million, a significant improvement from NZD 50 million in the prior corresponding period, which had been weighed down by costs related to hedge and demand response contracts during New Zealand’s severe drought in winter 2024.
Dividend and Shareholder Returns
Reflecting its strong financial position, Meridian’s board declared an interim ordinary dividend of 6.40 cents per share, up 4.1% from the previous interim dividend. The dividend will be 85% imputed and is accompanied by a Dividend Reinvestment Plan (DRP) offering a 2% discount to shareholders who choose to reinvest.
The company maintains a solid balance sheet with a BBB+ credit rating from Standard & Poor’s, supporting its ongoing investment and growth ambitions.
Renewable Development Momentum
Meridian continues to advance its renewable energy pipeline with notable progress on several fronts. The Harapaki Wind Farm and Ruakākā Battery Energy Storage System are now operational, while construction is underway on the Ruakākā and Te Rahui solar farms, with first power expected in late 2026 and mid-2027 respectively.
Looking ahead, the company targets final investment decisions this year for the Mt Munro Wind Farm and the repowering of the Te Rere Hau Wind Farm, alongside the second stage of the Te Rahui solar farm. Meridian also anticipates key consenting outcomes by mid-2026 for projects including Swannanoa Solar, Waikato Solar, Manawatū Solar, and the reconsenting of the Waitaki Power Scheme.
Retail Growth and Technology Upgrade
Meridian’s retail business showed strong momentum with a 12% increase in sales volumes, boosted by the acquisition of Flick Energy customers in August 2025. This expanded Meridian’s residential market share from 17.5% to 19.5%. The ongoing migration of customers to Meridian’s new Kraken technology platform is progressing well, with over 75,000 customers transitioned and full mass-market migration expected by mid-2026.
The company is also innovating with products like Smart Hot Water, which offers discounts to customers for flexible heating times, and competitive solar buyback and electric vehicle plans aimed at reducing overall energy costs for consumers.
Operational Excellence and Sustainability
Meridian’s generation fleet performed strongly, maintaining high plant availability to manage elevated inflows and wind conditions, while executing significant maintenance projects. The team is increasingly leveraging AI and advanced analytics to optimise asset performance.
On the sustainability front, Meridian achieved its best-ever score in the Dow Jones Best-in-Class Index, marking its eleventh consecutive year in the index and reinforcing its leadership in environmental, social, and governance (ESG) standards.
As New Zealand’s energy landscape evolves, Meridian is sharpening its focus on firming capacity to balance declining domestic gas supply, including exploring hydro development options for the first time in decades and pursuing contingent storage access at Lake Pūkaki.
Bottom Line?
Meridian’s strong interim results and accelerated renewable projects position it well for the challenges and opportunities ahead in New Zealand’s energy transition.
Questions in the middle?
- How will Meridian’s exploration of new hydro development impact its long-term generation mix?
- What are the risks and timelines associated with the upcoming consenting decisions for major renewable projects?
- How will the continued migration to the Kraken platform affect operational costs and customer retention?