Big four power profits set to soar 45% as Contact Energy kicks off earning week

Monday, 16 February 2026

The country’s big four electricity gentailers are expected to report a big jump in their profits over the coming fortnight, kicking off with Contact Energy, which will today post its results for the six months to the end of December.

Both Craigs Investment Partners and Forsyth Barr are forecasting Meridian, Contact, Mercury and Genesis will report a combined operating profit of about $1.86 billion for the six months to the end of December, which would represent an increase of 44% or 45% on the same period last year.

The expected profit jump comes during a period in which cheap hydro power has been abundant and in the wake of a 12.2% annual average hike in price of electricity, as well as at a time when customer complaints have been surging.

Consumer NZ said it expected power prices to increase by a further 5% this year due to rising lines charges.

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Craigs made clear it expected the power company profits to keep flowing during the second half of the financial year, which it said had got off to “a good start”.

The sector was “well set up for delivering full-year results above initial expectations”, it said.

Craigs expects Meridian, Contact and Mercury to each post an operating profit of more than $1 billion in the year to June, which it said would be the first time that had happened.

Forsyth Barr expects all the gentailers to post a record interim operating profit, with the possible exception of Genesis Energy.

The predicted strong performances may come with a political risk attached.

NZ First deputy leader Shane Jones said on Tuesday the party would campaign at the next election on breaking up the power firms.

Earlier the same day, he said at an energy industry breakfast that the pricing decisions of the electricity gentailers would “represent about 99%” of his campaign.

There is speculation Jones would renew his bid for NZ First to obtain the energy portfolio as part of any coalition negotiations the party was involved in after the election.

Meridian Energy will be last of the big four power firms to report its results, on February 25.