NZX Weekly Earnings Review — 20 June 2026

The NZX saw six actual earnings results and four trading updates or guidance revisions this week, among 95 total announcements. The standout stories were operational updates from the country's two largest gentailers, MEL and CEN, both reporting strong volume growth undercut by falling wholesale electricity prices, while on the guidance side DGL and FBU both lifted their outlooks. Overall sentiment across the announcements was largely neutral, with three positive and one negative reading.

Meridian Energy (MEL)

Meridian Energy's May operating report showed retail sales volumes up 7.8% year-on-year, with residential demand jumping 20.4% in the month, and year-to-date retail volumes 9.0% ahead of the prior year. Total generation for May reached 1,189 GWh, up 12.0% on the same month last year, driven by hydro output of 1,042 GWh against 895 GWh a year earlier. National hydro storage stood at 125% of historical average as of 8 June, with year-to-date inflows at 118% of average — the highest since 1998. That abundance of water has come at a cost, however: average generation prices received in May were 61.7% lower than a year earlier, reflecting depressed wholesale electricity prices amid strong hydro conditions and new generation capacity coming online. Shares in Meridian closed the week at $5.70, down 4.2%. Coverage from Yahoo Finance Australia noted the broader New Zealand market fell over the week even as Meridian's contracted retail sales volumes rose, while Meridian separately confirmed its full FY26 annual results will be released on 26 August.

Contact Energy (CEN)

Contact Energy's May operating report told a similar story to Meridian's. Mass market electricity and gas sales rose 26% to 461 GWh, with retail gas sales more than doubling to 143 GWh from 55 GWh a year earlier. Contracted wholesale electricity sales climbed 34% to 1,027 GWh, and total generation rose 23% to 1,034 GWh, with hydro generation up 66% to 464 GWh on strong inflows. As at Meridian, the volume growth came with a margin trade-off: wholesale electricity and steam net revenue fell to $159.86/MWh from $169.49/MWh, reflecting lower spot prices, though this was partly offset by a roughly 25% reduction in unit generation costs to $37.11/MWh from $49.26/MWh. Contact remains mid-construction on four renewable development projects totalling approximately $1.5 billion in approved costs. Shares fell 4.7% over the week to $9.10. Macquarie trimmed its price target on the stock by 2% to $10.67, according to Moomoo, even as Yahoo Finance Australia highlighted the company's higher April retail sales volumes.

Tower (TWR)

Tower's announcement this week was administrative rather than operational: the insurer confirmed the AUD/NZD exchange rate of 0.8233 applying to its FY2026 interim dividend for Australian-listed shareholders. The ordinary dividend of NZ$0.05 per share, plus a supplementary dividend of NZ$0.0088, equates to A$0.0484 per security, with payment due 25 June. Shares eased 1.8% over the week to $1.86. Simply Wall St reported that Tower's recent earnings missed analyst estimates, prompting analysts to revise forecasts lower.

Rua Gold (RGI)

Rua Gold reported encouraging drill results from its Auld Creek Gold-Antimony Project in the Reefton Goldfield, including intercepts of 2.85m at 5.6 g/t gold and 10.1m at 2.2 g/t gold-equivalent, demonstrating grade continuity over a strike length exceeding 1,000 metres and to depths beyond 500 metres. The company is roughly halfway through its 19,000-metre drill programme, having completed around 10,000 metres and collared its 100th hole, and has begun Pre-Feasibility Study work targeting completion in the fourth quarter of 2026. A Fast-Track Referral Application is under government review, with a decision expected in July. Despite the positive exploration news, shares fell 7.9% over the week to $1.51 — a reminder that exploration updates, while encouraging, don't always translate into immediate share price support, particularly for a stock that only recently completed its NZX debut.

Taiko Critical Minerals (TCM)

Taiko Critical Minerals, formerly TiGa Minerals & Metals and focused on the Barrytown Mineral Sands Project, reported a net loss of NZ$8.69 million for the year to 31 March 2026, widening from a NZ$2.95 million loss the prior year. The wider loss was driven largely by non-cash and one-off items: a NZ$2.13 million unrealised loss on derivative revaluation, NZ$1.44 million of embedded derivative amortisation, and NZ$0.81 million of NZX listing costs. As a pre-revenue explorer, the company generated no operating revenue in the period. On the balance sheet side, Taiko raised NZ$7.26 million via an entitlement offer and ended the year with cash of NZ$2.85 million, up sharply from just NZ$0.16 million a year earlier, though it still carries net liabilities of NZ$0.40 million and remains dependent on further capital raising. Shares rose 11.5% over the week to $0.29 — a reaction likely tied more to the successful capital raise and improved cash position than the widened statutory loss, which largely reflects accounting items tied to the company's March NZX listing. BusinessDesk reported a trading halt was applied around the release of the "upbeat" capital raise numbers.

Trading Updates & Guidance

Fletcher Building (FBU)

Fletcher Building guided to FY26 EBIT of $375-380 million, including approximately $40 million from property sales, and confirmed the withdrawal of its Moody's credit rating as it moves to a simplified capital structure with lower net debt. The company has completed six divestments and expects property sales to generate roughly $450 million in net cash proceeds earmarked for debt reduction. The update landed well with the market: shares jumped 14.4% over the week to $3.65. Macquarie lifted its price target 5.4% to $1.74 (on an ASX-equivalent basis), while Yahoo Finance Australia and Kalkine both flagged a separate $60 million government deal for Fletcher's Golden Bay Cement business as a supporting factor.

Delegat Group (DGL)

Delegat Group lifted its FY2026 operating net profit after tax guidance to $60.0-62.0 million, up from a prior range of $50.0-55.0 million, while holding its global case sales forecast steady at 3.3 million cases. Management attributed the upgrade to stronger fourth-quarter trading, lower US tariffs and favourable currency movements. The market responded positively, with shares up 16.9% over the week to $4.23. Yahoo Finance Australia listed Delegat among the NZX's biggest gainers following the announcement.

Seeka (SEK)

Seeka issued its first earnings guidance for 2026, expecting net profit before tax of $38.0-42.0 million, down from $47.5 million in 2025. The softer outlook reflects lower kiwifruit volumes in both New Zealand (45.4 million trays versus 47.1 million) and Australia (2.25 million kg, down 14%), partly offset by automation efficiency gains. Shares were largely steady, up 2.5% over the week to $4.95, suggesting the market had broadly anticipated the softer volume backdrop.

2 Cheap Cars (2CC)

2 Cheap Cars reported net profit after tax of approximately $0.6 million in each of March, April and May, describing positive trading momentum continuing into FY27, though it stopped short of issuing formal FY27 guidance and cautioned the recent run rate may not be representative of the full year. Shares surged 31.4% over the week to $0.795 — a move that coincides with reported takeover interest, with BusinessDesk and thepost.co.nz both reporting that the company's majority owner has tabled an offer to take 2 Cheap Cars private, which is likely a bigger driver of the share price action than the trading update itself.

Top Movers

Weekly Price Movers

Notable Shareholder Movements

Substantial holder activity this week was dominated by FirstCape Group, which lodged notices across three separate companies. FirstCape trimmed its stake in ARG (Argosy Property) from 8.212% to 7.209%, and reduced its holding in EBO (Ebos Group) from 6.390% to 5.363%, while also disclosing a 5.086% substantial holding in ATM (a2 Milk). Elsewhere, Salt Funds Management increased its position in NZL (New Zealand Rural Land Company) from 6.412% to 7.483%, and Westpac Banking Corporation lifted its stake in SPG (Stride Property) from 5.02% to 6.04%.

Looking ahead, Meridian Energy has confirmed its full-year results will land on 26 August, kicking off a run of gentailer reporting that will show whether the volume gains seen across the sector this year can offset the pressure on wholesale prices from abundant hydro storage. With reporting season proper still some weeks away, the market's attention in the interim is likely to stay on trading updates and guidance revisions of the kind seen this week from Fletcher Building, Delegat and Seeka, alongside ongoing corporate activity such as the take-private proposal at 2 Cheap Cars.