The Mercury NZ Ltd (ASX: MCY) share price is in focus today after the company’s December 2025 quarter update showcased strong hydro inflows, lower wholesale electricity prices, and progress on its new geothermal generation project.
What did Mercury NZ report?
- Waikato hydro generation rose by 23% to 1,072 GWh for the quarter
- Wholesale spot electricity prices in Auckland averaged $40/MWh, down due to high hydro inflows
- Wind generation up 6% year-on-year; geothermal generation down 9% due to planned maintenance
- 223,000 customer accounts now use two or more Mercury products, up 10% from last year
- New geothermal OEC5 unit commissioning commenced in January 2026
What else do investors need to know?
Mercury NZ’s operational performance benefited from national hydrological inflows near record levels, resulting in above-average hydro lake storage. Notably, TaupÅ storage remained elevated, providing a strong base for future generation.
The company’s bundling strategy is paying off, with telco and mobile connections up by 30,000 compared to the same period last year. Commercial and industrial electricity yields were slightly lower, with some contracts repricing to better reflect 2026 forward electricity curves.
What’s next for Mercury NZ?
Looking ahead, Mercury NZ plans to finish full commissioning of the NgÄ Tamariki OEC5 geothermal expansion by the end of the third quarter. Once online, this project is expected to add 390 GWh of annual generation and boost net output by 46 MW, supporting reliability and renewable supply.
The company remains focused on expanding integrated energy and telco customer offerings, supported by strong hydro reserves and continued investment in renewable projects.
Mercury NZ share price snapshot
Over the past 12 months, Mercury NZ shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
The post Mercury NZ Q2 update: Hydro powers results, renewables on track appeared first on The Motley Fool Australia.
Should you invest $1,000 in Mercury NZ Limited right now?
Before you buy Mercury NZ Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mercury NZ Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Meridian Energy reports record hydro inflows and rising customer growth
- 5 things to watch on the ASX 200 on Wednesday
- Here are the top 10 ASX 200 shares today
- Summerset Group Holdings FY25 results: record sales and growth momentum
- Fletcher Building sells Construction Division to VINCI for $315.6 million
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.
Leave a Reply