Mercury (ASX: MCY) today announced a strong third-quarter performance, attributing its success to higher renewable generation and disciplined portfolio management. The company reported a trading margin of $325 million for the quarter, marking a 27% increase compared to the prior comparable period. This robust performance has led to an upgraded FY2026 EBITDAF guidance of $1.05 billion. Mercury is an energy company whose generation assets produce electricity from 100% renewable sources, including hydro, geothermal, and wind, and it also operates as a retailer of electricity, gas, broadband, and mobile services.
The quarter reflected continued delivery across Mercury’s renewable development and asset renewal programmes. A key milestone was the successful opening and completion of the reliability run for the Nga Tamariki geothermal station’s OEC5 unit, which was delivered on time and on budget. This new unit is anticipated to increase the site’s generation by 390 GWh per annum and net output by 46 MW. Furthermore, Mercury committed to the next phase of its hydro refurbishment programme, signing a contract with international technology group ANDRITZ to enhance the long-term resilience and performance of its existing asset base.
Additional highlights include a 140 MW power purchase option agreement signed with Datagrid New Zealand, designed to support new demand and AI infrastructure growth within the country. First generation from 11 turbines installed at the Kaiwera Downs Stage 2 wind farm also commenced ahead of schedule in April. Overall, Mercury’s generation volume for the quarter reached 1,997 GWh, an increase of 286 GWh on the prior comparable period, with hydrological inflows recorded at the 76th percentile. The company noted this performance underscores strong operational momentum and disciplined execution against its strategic priorities, with further discussions on its geothermal platform planned for its Investor Day on 14 May.
