Genesis Energy (ASX: GNE) has updated its FY26 Normalised EBITDAF guidance following a robust second-quarter performance. Genesis Energy is a diversified New Zealand energy company, selling electricity, reticulated natural gas and LPG, and is one of New Zealand’s largest energy retailers with over 520,000 customers. The company announced an increase to its Normalised EBITDAF guidance for FY26 to a range of $490 million to $520 million, up from the previous guidance of $455 million to $485 million. All other FY26 guidance remains unchanged.
The company’s Q2 FY26 performance was marked by record-low thermal generation of 85 GWh, reflecting disciplined dispatch and optimisation efforts. This was coupled with increased sales to industrial customers, effectively monetising surplus gas during the period. Hydro generation stood at 740 GWh, supported by favourable hydrological conditions, with lake levels increasing significantly. These operational successes translated to electricity netbacks of $159/MWh, indicative of margin quality improvements.
Genesis Energy also made significant strategic and operational progress during the quarter. The company submitted a Transpower connection application for the ~300 MW Castle Hill wind project and executed a framework agreement with Yinson Renewables for participation in a >1 GW onshore wind pipeline. Final Investment Decision was reached for the 136 MWp Edgecumbe solar farm, and the acquisition of the 271 MWp Rangiriri solar project was completed. The Huntly BESS Stage 1 project remains on track for Q1 FY27 commercial operations.
The updated FY26 outlook is underpinned by Genesis Energy’s diversified portfolio, active management of hydro and thermal fuel flexibility, and continued focus on margin quality and cost discipline. The company will provide further details at its Half Year Results in February.
