Contact Energy Ltd (ASX: CEN), a New Zealand-based integrated energy company generating electricity and providing energy and telecommunications services, has reported robust financial performance for the 2026 financial year. The company saw underlying EBITDAF climb 31% to $1,011 million, with underlying profit increasing 62% to $423 million. Operating free cash flow surged 49% to $648 million. An annual dividend of 40 cents per share was declared, a 3% uplift on FY25, with a dividend reinvestment plan offered. Chief Executive Mike Fuge called the year “transformational,” largely due to the successful Manawa acquisition, which achieved 100% of its targeted cost-reduction synergies.
A strategic $575 million equity raise in February 2026 strengthened Contact’s balance sheet, enabling accelerated investment in its renewable energy pipeline. The company enhanced New Zealand’s energy security, securing a 10-year agreement for 50MW of Huntly Firming Options. Contact also commissioned its first 100MW grid-scale battery at Glenbrook, with a second 200MW battery under construction for 300MW total capacity. A seven-year agreement with the Ministry of Business, Innovation and Employment ensures gas supply for essential public services. Renewable development continues with progress on the Te Mihi Stage 2 geothermal project and commissioning of the Kōwhai Park solar farm.
Contact’s commitment to a renewable future was further demonstrated by an 11-year 50MW supply agreement with NZ Steel for its new electric arc furnace, and consent granted for the Southland Wind farm. Mr Fuge highlighted the continuous infrastructure build, noting, “Since 2021, Contact has maintained a continuous infrastructure build programme, with $2.4 billion committed to renewable projects in the last five years.” Retail connections grew to over 690,000, driven by multi-product offerings and Time-of-Use plans. Community support also expanded through “The Good Initiative,” with increased funding planned for the coming year.
