The Genesis Energy Ltd (ASX: GNE) share price is in focus as the New Zealand energy provider delivered a solid Q2 FY26, highlighting record hydro generation, robust fuel management and an upgraded EBITDAF outlook for the year.
What did Genesis Energy report?
- Hydro generation: 740 GWh, up 21 GWh year on year, driven by strong hydrology and plant availability
- Thermal generation: 85 GWh for the quarter, a record low; 869 GWh for the half, also a record low
- Total customer numbers: 495,706, down 4% versus a year ago, reflecting brand integration and churn
- Electricity netback: $159/MWh, normalising from Q1, with margin quality supported by disciplined pricing
- FY26 normalised EBITDAF guidance lifted to $490â$520 million (from $455â$485 million)
- Billing and CRM re-platform Release 1 live for 50,000 customers; Release 2 on track
What else do investors need to know?
Genesis continued to advance its long-term renewables pipeline, making progress on new onshore wind, solar, and battery projects destined to drive future portfolio flexibility and growth. The company also signed a framework agreement with Yinson Renewables for exclusive rights to over 1 GW of onshore wind projects and submitted a grid connection application for the 300 MW Castle Hill wind development.
On the operational side, Genesis completed the final investment decision for the 136 MWp Edgecumbe solar farm and acquired the 271 MWp Rangiriri solar project. Construction of Stage 1 of the Huntly BESS (Battery Energy Storage System) remains on schedule and on budget for commencement in Q1 FY27. The business retains focus on cost efficiency and late-life optimisation of its Huntly and Kupe operations.
What’s next for Genesis Energy?
Looking ahead, Genesis Energy has increased its FY26 normalised EBITDAF guidance range to $490 millionâ$520 million, citing better-than-expected margin quality and continued strength across its diversified portfolio. Operating costs are trending higher as investment continues in strategic initiatives, including digital, renewables, and the Gen35 growth strategy, but second-half FY26 expectations remain in line with prior guidance.
The company aims to further expand its renewable and flexible generation assets, enhance digital capabilities, and maintain disciplined capital allocation. Further detail on progress is expected at Genesis’ half-year results in February.
Genesis Energy share price snapshot
Over the pat 12 months, Genesis Energy shares have risen 6%, running slightly ahead of the S&P/ASX 200 Index (ASX: XJO) which has increased 4% over the same period.
The post Genesis Energy lifts FY26 guidance in strong Q2 earnings appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.
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