Mercury NZ Limited (ASX:MCY) posted a 33% jump in Q4 trading margin to $390 million, driven by strong renewable generation and key wind farm progress.
- Q4 trading margin rises 33% to $390 million
- Kaiwera Downs Stage 2 turbines installed, testing underway
- Kaiwaikawe Wind Farm on track for H1 FY27 operation
- Fast-track consent granted for Puke Kapo Hau Wind Farm
- Flex Rates launched to give customers more control
Robust Q4 Performance Lifts Trading Margin
Mercury NZ Limited (ASX:MCY) delivered a strong finish to FY26 with a 33% increase in its fourth-quarter trading margin, reaching $390 million. This uplift was supported by a 339 GWh rise in renewable generation to 2,344 GWh and disciplined portfolio management.
Year-to-date, the company’s trading margin climbed $269 million to $1.42 billion, reflecting solid operational momentum across its renewable assets and strategic initiatives.
Wind Farm Projects Progress on Schedule
Key milestones were achieved in Mercury’s wind portfolio during the quarter. All turbines at Kaiwera Downs Stage 2 Wind Farm have been installed, with reliability testing underway and full handover expected by the end of August.
Meanwhile, Kaiwaikawe Wind Farm is progressing on schedule, with first generation from six installed turbines commencing in July. The project is set to be fully operational in the first half of FY27, supported by Mercury’s WindPlatform technology which aims to deliver projects at scale, on time, and on budget.
Adding to its pipeline, Mercury secured fast-track consent for the Puke Kapo Hau Wind Farm, reinforcing its future growth options in renewable development.
Geothermal Expansion and Asset Renewal
Beyond wind, Mercury continues to invest in its geothermal platform, with $75 million committed to appraisal drilling at the Ngā Tamariki and Rotokawa geothermal fields. These efforts follow the company’s May Geothermal Investor Day, which highlighted over 1 TWh of geothermal projects entering feasibility.
Asset renewal programmes are also advancing, including hydro refurbishment projects that contribute to sustaining and enhancing generation capacity.
Customer Initiatives and Market Position
On the retail front, Mercury launched Flex Rates, a new Time of Use electricity plan for eligible customers, designed to give consumers more control over their electricity costs.
The company’s generation mix remains firmly renewable, with hydro, geothermal, and wind assets underpinning its supply. Hydrological inflows for the quarter were at the 61st percentile, a decline from the previous corresponding period but still supportive of generation output.
Bottom Line?
Mercury’s strong Q4 momentum and strategic renewable projects position it well for growth, though upcoming operational handovers and geothermal drilling results will be key to watch.
Questions in the middle?
- How will the completion of Kaiwera Downs Stage 2 affect Mercury’s generation profile in FY27?
- What impact will the new Flex Rates have on customer retention and revenue mix?
- Can the geothermal appraisal drilling at Ngā Tamariki and Rotokawa unlock significant new capacity?