Contact Energy's net profit climbs to $423 million, up 62 percent on last year

Contact Energy has reported a record net profit of $423 million, driven by the acquisition of Manawa Energy and higher renewable generation, as it looks to future electricity demand with a proposed data centre development in Taranaki.

Key numbers for the year ended June 2026 compared with a year ago:

• Net profit $423m v $331m
• Underlying profit $423m v $261m
• Operating earnings (EBITDAF) $1,011m v $774m
• Revenue $3,242m v $3,439m
• Final dividend 24 cents per share

Contact Energy's net profit rose 28 percent to $423 million from a reported $331 million a year earlier.

Excluding a one-off gain related to Ahuroa Gas Storage in FY25, the company said underlying profit increased 62 percent from $261 million.

The period includes the acquisition of Manawa Energy, which Contact said has contributed to the uplift in earnings.

Contact said the stronger result also reflected increased renewable generation output, lower fuel costs and improved market conditions compared with the previous year.

Operating free cash flow rose 49 percent to $648 million, which the company attributed to the Manawa acquisition, improved operating performance and a positive movement in working capital.

The company outlined further renewable energy investment plans but did not provide earnings guidance.

New data centre partnership with CDC

Separately, Contact announced it is partnering with CDC data centres, which is partly owned by NZX-listed infrastructure investor Infratil, to explore a potential data centre in Stratford, Taranaki.

The companies will seek consent for a proposed 250-megawatt facility near Contact's recently retired Taranaki combined cycle gas power plant.

The proposed development would have an IT load of 250MW, with total electricity demand potentially reaching about 350MW once ancillary systems are included.

Chief executive Mike Fuge said electricity for the facility would be supplied under long-term contracts supported by Contact's pipeline of geothermal, wind and solar generation projects.

Contact said Stratford was an attractive location because of its existing grid connection, fibre infrastructure and consented battery storage capacity.

The company has already secured consent for up to 500MW of grid-scale batteries at the site.

According to the company Stratford is an attractive option for data centre development, with 500 MW of grid-scale batteries already consented and an existing grid connection.

The proposal remains at an early stage and will require consents, customers and financing before any final investment decision is made. Neither company has yet committed to building the facility.