Contact Energy (ASX:CEN) has signaled a massive acceleration in New Zealand’s renewable energy transition, posting a stellar financial performance for the first half of 2026.
The company reported a net profit of NZ$205 million, a sharp 44% increase from the previous year, while operating earnings climbed to NZ$500 million.
The growth was bolstered by the strategic acquisition of Manawa Energy, which helped push Contact’s renewable output to a staggering 97% of its total generation.
To maintain this momentum, Contact has announced a NZ$525 million equity raise intended to fund a suite of decarbonisation projects.
The capital will be deployed toward "Contact31+," a strategic roadmap focused on expanding battery, solar, and geothermal footprints.
Key upcoming investments include the 200MW Glenbrook battery 2.0, the 150MWac Glorit solar farm, and exploratory drilling to upsize the Tauhara 2 geothermal plant.
Beyond the numbers, the integration of Manawa hydro assets and the full-period operation of the Te Huka 3 geothermal plant have provided a robust buffer against market volatility.
While the acquisition introduced NZ$22 million in one-off transaction costs, the underlying business remains healthy, with operating free cash flow surging 80% to NZ$249 million.