Mercury NZ Limited (ASX: MCY) has announced a robust first-quarter performance for FY27, reporting a trading margin of $445 million for the three months ended 30 September 2026, marking a 19% increase on the prior comparable period. The company, which generates electricity from 100% renewable sources including hydro, geothermal, and wind, and also retails electricity, gas, broadband, and mobile services, achieved this despite challenging hydrological conditions, with Waikato hydro inflows at the second percentile. Mercury Chief Executive Stew Hamilton noted this performance demonstrates the resilience of their earnings, supported by disciplined portfolio management and a diversified generation portfolio.
Operational highlights included significant progress in Mercury’s renewable development programme. The Kaiwera Downs Stage 2 project, a $486 million expansion, has reached full generation, adding 36 turbines and 155MW of installed capacity. Furthermore, all 12 turbines are now installed at Kaiwaikawe Wind Farm, which commenced generation in July, reflecting the company’s construction delivery pace. Looking ahead, the Puke Kapo Hau Wind Farm is progressing to plan, with works anticipated to begin in November 2026.
Overall generation volume for the quarter was 2,526GWh, an increase of 26GWh on the prior comparable period. This was driven by a 307GWh uplift in new wind and geothermal generation, offsetting lower hydro volumes, which were down 332GWh. Mercury outlined its capital expenditure expectations for FY27, with stay-in-business (SIB) CAPEX projected to be around $150 million and growth CAPEX between $300 million and $400 million. Based on its current outlook, the company remains on track to deliver its FY27 EBITDAF guidance.
