Mercury NZ Looks Likely to Beat Earnings Guidance

Dow Jones
07/24
 

2231 GMT - Power generator Mercury NZ's strong end to FY26 means it will comfortably beat earnings guidance, Forsyth Barr says. Mercury NZ was able to expand profit margins in 4Q as a result of improved electricity trading. Conditions in the quarter, with hydro-generation volumes some 18% above average and wind-power output up 6% on year. Forsyth Barr expects Mercury NZ's Ebitdaf totaled NZ$1.069 billion in FY26. That is 2% above the power company's own guidance. "Looking ahead, further earnings growth will come from its new generation projects (Ngā Tamariki, Kaiwera Downs 2, and Kaiwaikawe), partially offset by falling electricity futures prices, its Manawa hedge contract repricing and, in the near term, expected El Niño impacts," analyst Andrew Harvey-Green says. Forsyth Barr retains a "neutral" call on the stock. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

July 23, 2026 18:31 ET (22:31 GMT)

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