The energy company reported earnings before interest tax, depreciation, amortisation and financial instruments (ebitdaf) of $500m for the six months to December 31, up from $404m in the previous comparable period.
The period includes the acquisition of Manawa Energy from July 11, 2025, which contributed to the uplift in earnings.
Reported figures also include $22m of Manawa transaction and integration costs.
Excluding these costs, ebitdaf was $522m, up 26%.
The better first half increased Contact’s normalised 2026 ebitdaf guidance by $15m to $995m after the Manawa transaction and integration costs.
Contact said the improved operating result was driven by a significant lift in renewable generation, with output being 97% renewable in the half.
“This reflected the addition of the Manawa hydro assets and its contracted PPAs [power purchase agreements] [wind and geothermal] totalling 1.3 terawatt hours [TWh] with a full period of generation at Contact’s new Te Huka 3 geothermal plant.”
Contact also confirmed its investment in a new 200MW battery, Glenbrook battery 2.0.
The board also approved investment in the 150MW Glorit solar farm joint venture, near Auckland.
It has also started pre-final investment decision (FID) drilling on Tauhara 2 geothermal to advance steamfield development and explore upsizing target capacity to 60-70MW.
Contact - the only one of the big four power generators that is not partially owned by the Government - said more than 150,000 customers were taking advantage of off-peak energy through time-of-use plans.
Total national electricity demand increased by 0.8 terawatt hours (TWh) (3.7% from 1H25).
Demand at the Central North Island node was down 24% following the closure of the Winstone Karioi pulp mill and Tangiwai sawmill in August 2024, reflecting broader challenges in wood and paper processing without the protection of fixed price electricity hedging,
Seasonal conditions at irrigation nodes, along with population growth, have resulted in a 9% increase in demand in South Canterbury, the company said.
Contact set its dividend at 16 cents per share - imputed to 56% or 9 cents per share for qualifying shareholders.
In its dividend outlook, the company reaffirmed its expectation to lift the total dividend in the 2026 financial year to 40cps and between 41 and 42cps in 2027.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
