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Highlights

  • Adjusted EBITDA for continuing operations rose 19% to $240 million on the back of a 14% increase in revenue.
  • Group net profit after tax slipped 4% to $113 million as lower capital contributions offset earnings growth.
  • Gross capital expenditure stood at $223 million, with higher spending expected in the second half.
  • Interim dividend of 12.5 cents per share declared for the period.

Vector Limited (NZE:VCT) has reported its financial results for the first half of FY26, posting growth in adjusted EBITDA while net profit after tax declined slightly compared to the prior corresponding period.

Strong EBITDA Growth on Higher Revenue

Adjusted EBITDA for continuing operations came in at $240 million, marking a 19% increase on the previous corresponding period. The uplift was driven by a 14% rise in revenue, reflecting the company’s ongoing network performance and operational momentum.

Vector Group Chief Executive Chris Blenkiron said the result was in line with expectations and provides a solid platform for continued investment in energy infrastructure.

Net Profit Dips as Capital Contributions Decline

Group net profit after tax for continuing operations was $113 million, down 4%, as higher EBITDA was offset by lower capital contributions.

Capital contributions — payments made by new customers connecting to the network — totalled $97 million, a 22% decline year on year. The company noted its current pricing approach ensures growth-related costs are borne by those driving the demand, although the Electricity Authority’s review of connection funding could influence this framework.

Capital Expenditure and Investment Plans

Gross capital expenditure for the half stood at $223 million, down 15% on the prior period. The company expects capital spending to be weighted toward the second half, with around $500 million forecast for the full financial year.

Vector stated that ongoing investment will focus on growth, network reliability and efficient electrification across Auckland.

Dividend Declaration

The board declared an unimputed interim dividend of 12.5 cents per share for the period.

FY26 Outlook

For the full year, Vector expects:

  • Adjusted EBITDA: $470 million to $490 million
  • Gross capital expenditure: $500 million to $540 million
  • Capital contributions: $180 million to $215 million

The company said it remains focused on delivering value for customers while maintaining affordable network charges and supporting long-term energy system development.

FAQs

How much did Vector report in adjusted EBITDA for HY26?
Vector posted adjusted EBITDA of $240 million, up 19% on the prior corresponding period.

Why did Vector’s net profit decline despite higher EBITDA?
Net profit after tax fell 4% to $113 million mainly due to lower capital contributions from new network connections.

What dividend did Vector declare for the half year?
The company announced an unimputed interim dividend of 12.5 cents per share.