Utilities Sector
NZ Energy Generation & Distribution
How the gentailers make money
Revenue traced to net profit from each company’s filed annual report, drawn only where the stored figures reconcile. EBITDA here is the figure stored from the statement; these companies headline EBITDAF, which also excludes fair-value movements on hedges, so it can differ. All companies
| Company | Year | Revenue | EBITDA | EBITDA margin | Net profit | Net margin |
|---|---|---|---|---|---|---|
| MEL | FY2025 | $4.8b | $611.0m | 12.6% | -$452.0m | -9.3% |
| MCY | FY2025 | $3.5b | $786.0m | 22.5% | $1.0m | 0.0% |
| CEN | FY2025 | $3.4b | $872.0m | 25.4% | $331.0m | 9.6% |
| GNE | FY2025 | $3.7b | $454.0m | 12.4% | $169.1m | 4.6% |
Years can differ between companies; each row is that company’s latest year that passed the checks.
How Meridian Energy Limited makes money — FY2025
Revenue $4.8b · EBITDA $611.0m (12.6% of revenue) · Net loss $452.0m (-9.3% of revenue)
Band widths are proportional to NZD amounts. Dashed outlines mark derived figures; the hatched node is a balancing item (net profit less every line above it).
| FY2025 | Amount | Status | Note |
|---|---|---|---|
| Revenue | $4.8b | Reported | |
| Operating costs (net of other income) | −$4.2b | Derived * | Reported operating expenses $3,636m do not reconcile; not used. |
| EBITDA | $611.0m | Reported | |
| Depreciation & amortisation | −$447.0m | Reported | |
| EBIT | $164.0m | Derived * | Reported EBIT $32m does not reconcile to EBITDA − D&A. |
| Interest (net finance costs) | −$84.0m | Reported | |
| Income tax credit | +$167.0m | Reported | |
| Other items (net cost) | −$699.0m | Balancing item * | Net profit less the lines above; covers fair-value movements, impairments, associates and anything else not itemised. |
| Net loss | -$452.0m | Reported |
- * ebit: $164.0m = EBITDA − D&A (reported EBIT $32m differs; the gap falls into Other items)
- * operating costs: $4.2b = Revenue − EBITDA
Figures extracted automatically from the annual report; check against the report. NZD thousands as stored, shown in millions. Source: annual_report_pdf · method: claude_haiku_pdf · extracted 7 March 2026.
Annual report: Meridian Energy Limited Annual Report (PDF, NZX)
How Mercury NZ Limited makes money — FY2025
Revenue $3.5b · EBITDA $786.0m (22.5% of revenue) · Net profit $1.0m (0.0% of revenue)
Band widths are proportional to NZD amounts. Dashed outlines mark derived figures; the hatched node is a balancing item (net profit less every line above it).
| FY2025 | Amount | Status | Note |
|---|---|---|---|
| Revenue | $3.5b | Reported | |
| Operating costs (net of other income) | −$2.7b | Derived * | Reported operating expenses $2,917m do not reconcile; not used. |
| EBITDA | $786.0m | Reported | |
| Depreciation & amortisation | −$357.0m | Reported | |
| EBIT | $429.0m | Reported | |
| Interest (net finance costs) | −$121.0m | Reported | |
| Income tax | — | Not reported | Recorded as $0 against a pre-tax profit, which is unlikely to be a nil charge; treated as not reported and included in the balancing item. |
| Tax and other items (net cost) | −$307.0m | Balancing item * | Net profit less the lines above; covers fair-value movements, impairments, associates and anything else not itemised. |
| Net profit | $1.0m | Reported |
- * operating costs: $2.7b = Revenue − EBITDA
Figures extracted automatically from the annual report; check against the report. NZD thousands as stored, shown in millions. Source: annual_report_pdf · method: claude_haiku_pdf · extracted 7 March 2026.
How Contact Energy Limited makes money — FY2025
Revenue $3.4b · EBITDA $872.0m (25.4% of revenue) · Net profit $331.0m (9.6% of revenue)
Band widths are proportional to NZD amounts. Dashed outlines mark derived figures; the hatched node is a balancing item (net profit less every line above it).
| FY2025 | Amount | Status | Note |
|---|---|---|---|
| Revenue | $3.4b | Reported | |
| Operating costs (net of other income) | −$2.6b | Derived * | Reported operating expenses $2,428m do not reconcile; not used. |
| EBITDA | $872.0m | Reported | |
| Depreciation & amortisation | −$273.0m | Reported | |
| EBIT | $599.0m | Reported | |
| Interest (net finance costs) | −$100.0m | Reported | |
| Income tax | −$132.0m | Reported | |
| Other items (net cost) | −$36.0m | Balancing item * | Net profit less the lines above; covers fair-value movements, impairments, associates and anything else not itemised. |
| Net profit | $331.0m | Reported |
- * operating costs: $2.6b = Revenue − EBITDA
Figures extracted automatically from the annual report; check against the report. NZD thousands as stored, shown in millions. Source: annual_report_pdf · method: claude_haiku_pdf · extracted 7 March 2026.
Annual report: Contact Energy Limited Annual Report (PDF, NZX)
How Genesis Energy Limited makes money — FY2025
Revenue $3.7b · EBITDA $454.0m (12.4% of revenue) · Net profit $169.1m (4.6% of revenue) · Balance date 30 June 2025
Band widths are proportional to NZD amounts. Dashed outlines mark derived figures; the hatched node is a balancing item (net profit less every line above it).
| FY2025 | Amount | Status | Note |
|---|---|---|---|
| Revenue | $3.7b | Reported | |
| Operating costs (net of other income) | −$3.2b | Derived * | |
| EBITDA | $454.0m | Reported | |
| Depreciation & amortisation | −$239.0m | Reported | |
| EBIT | $215.0m | Derived * | Reported EBIT $304.3m does not reconcile to EBITDA − D&A. |
| Interest (net finance costs) | −$79.2m | Reported | |
| Income tax | −$58.8m | Reported | |
| Other items (net gain) | +$92.1m | Balancing item * | Net profit less the lines above; covers fair-value movements, impairments, associates and anything else not itemised. |
| Net profit | $169.1m | Reported |
- * ebit: $215.0m = EBITDA − D&A (reported EBIT $304.3m differs; the gap falls into Other items)
- * operating costs: $3.2b = Revenue − EBITDA
Figures extracted automatically from the annual report; check against the report. NZD thousands as stored, shown in millions. Source: annual_report_pdf · method: claude_haiku_pdf · extracted 7 March 2026.
Annual report: Genesis Energy Limited Annual Report (PDF, NZX)
All Utilities Companies
FAQs About NZX Utilities
What companies are in the NZX Utilities sector?
The NZX Utilities sector primarily consists of electricity generation and distribution companies, including Contact Energy (CEN), Mercury NZ (MCY), Genesis Energy (GNE) and Meridian Energy (MEL). These companies generate electricity from renewable sources (hydro, geothermal, wind) and retail it to consumers and businesses across New Zealand.
How do utilities companies make money in New Zealand?
NZX utilities companies generate revenue through two main streams: (1) Electricity generation - selling wholesale electricity to the national grid from their power stations, and (2) Retail operations - selling electricity directly to residential and commercial customers. Most major utilities are vertically integrated, operating both generation assets and retail businesses. They earn profits through the margin between generation costs and retail prices, with profitability influenced by factors like wholesale electricity prices, generation volumes, retail customer numbers, and operational efficiency.
What is EBITDAF in utilities companies?
EBITDAF stands for Earnings Before Interest, Tax, Depreciation, Amortization, and Fair Value movements. It is a profitability metric commonly used by NZ utilities companies to show operating performance before accounting for capital structure, depreciation on generation assets, and fair value changes in financial instruments (such as electricity hedges). EBITDAF margins vary between companies depending on their generation mix and retail exposure.
What is the difference between Contact Energy and Mercury NZ?
Both are vertically-integrated electricity generators and retailers listed on the NZX, but they differ in scale and generation mix. Contact Energy (CEN) has exposure to both thermal generation (gas-fired plants) and renewables, while Mercury NZ (MCY) is predominantly focused on hydro and geothermal generation. Their revenue, EBITDAF margins, and depreciation profiles differ based on their respective asset bases.
What are the dividend characteristics of NZX utilities?
NZX utilities companies have historically paid regular dividends, supported by relatively stable cash flows from electricity generation and retail operations. The sector is capital-intensive, requiring ongoing investment in generation assets, which affects the balance between dividend payments and capital expenditure. Dividend policies vary by company — investors should review each company's dividend history, payout ratio, and stated distribution policy.
How does renewable energy affect utilities profitability?
New Zealand's utilities are predominantly renewable (over 80% of generation from hydro, geothermal, and wind), which provides both advantages and challenges. Renewable generation has lower ongoing fuel costs compared to thermal (gas/coal) generation, improving long-term margins. However, it requires high upfront capital investment, reflected in higher depreciation. Hydrology risk significantly impacts profitability - dry years reduce hydro output, forcing companies to buy expensive thermal generation or wholesale electricity. Companies with diverse generation portfolios (hydro + geothermal + wind + gas) can better manage these risks and maintain stable profitability across varying weather conditions.
What factors drive electricity prices in New Zealand?
New Zealand wholesale electricity prices are driven by: (1) Hydrology - rainfall levels affecting hydro generation capacity, (2) Gas prices - influencing thermal generation costs, (3) Demand patterns - seasonal variations and economic activity, (4) Transmission constraints - limitations in moving power between North and South Islands, and (5) Generation outages - planned maintenance or unexpected failures. Retail prices are influenced by wholesale costs plus distribution network charges, metering costs, regulatory levies, and retail margins. The spot market operates with prices set every 30 minutes based on supply-demand balance, creating volatility that utilities manage through hedging strategies.
What is the market capitalization of the utilities sector?
The total market capitalization of the NZX Utilities sector is approximately $41.6 billion, making it one of the larger sectors on the New Zealand stock exchange. This represents the combined value of all publicly-listed electricity generation and distribution companies. The sector's substantial market cap reflects the critical infrastructure these companies operate, their stable revenue streams, and their importance to New Zealand's energy security and decarbonization goals.
Data sourced from NZX company announcements and annual reports. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz.
For informational purposes only. Not investment advice.