Country’s largest power firm nearly doubles operating profit, says market ‘working well’

Wednesday, 25 February 2026

Meridian Energy, the country’s largest power firm, has reported a net profit of $227 million for the six months to the end of December, turning around a rare $121m net loss it recorded for the same period in 2024.

Its operating profit, which is generally regarded by analysts as a better indication of changes in power firms’ performance, nearly doubled to $506m for the period.

The company said the result was fuelled by a $264m, or 59%, increase in its energy margin, driven by “record wind generation and the second-best lake inflows on record”.

Stats NZ reported in January that the average price consumers paid for electricity rose 12.2% during the year, but Meridian noted the favourable conditions had put downward pressure on wholesale prices in the spot market.

Despite political heat on the sector, Meridian will increase its payout to shareholders for the half-year by 4%, to 6.4 cents a share.

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The results come days after fellow gentailers Contact Energy, Genesis and Mercury also reported steep increases in their profitability.

Meridian chief executive Mike Roan said the market “continues to function well” and the company had “taken steps towards making electricity more affordable for Kiwi homes and businesses”.

“New Zealand has a highly competitive retail electricity market,” he said.

“Our competitive solar buyback rates and EV plans are also helping Kiwis reduce their overall energy bills.”

The company invested just $53m in growth initiatives in the half-year, down from $72m in the same period in 2024, and less than the three other major gentailers.

Roan said it was “committed to doing its share of the heavy lifting” when it came to future investment, noting that for the first time in decades it was exploring options for additional hydro generation.