Vector posts $240m profit as revenue hits $1b
Vector posts $240m profit as revenue hits $1b
Vector Group, the Auckland‑based community‑owned electricity and gas distributor, released its 2026 full‑year financial results on Tuesday, showing a marked rise in both revenue and earnings. Revenue that excludes capital contributions climbed 12% to reach the $1 billion milestone, while net profit for the year was reported at $240 million.
Revenue Hits $1 Billion
The increase in top‑line figures reflects the first complete year of the Commerce Commission’s nationwide electricity distribution pricing reset, which began on 1 April 2025. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), measured without capital contributions, grew 20% to $482 million.
Profit Surges to $240 Million
Gross capital expenditure for the year rose 16% to $544 million, of which $191 million were recognised as capital contributions. The company attributed the stronger profit to disciplined execution across its core priorities, a theme echoed by Chief Executive Blenkiron.
Capital Spending Rises
Electricity‑related capital contributions fell 7% to $183 million, yet adjusted EBITDA for that segment jumped 25% to $440 million. In the gas business, revenue excluding capital contributions edged up 2% from $67 million to $69 million, while gas capital contributions dropped 43% to $8 million. Adjusted EBITDA for gas remained flat at $47 million.
Dividend Declared
Vector announced a final dividend of 13.5 cents per share, bringing the total dividend for the year to 26 cents per share. The payout underscores the firm’s intention to return value to shareholders after a year of robust financial performance.
Network Investment
During the reporting period, Vector poured a record $512 million into Auckland’s electricity network, reinforcing infrastructure and reliability. The company also introduced a dynamic 10 kW solar export limit, a measure designed to enable more residential solar owners to maximise the return on their installations.
Customer and Operational Focus
Blenkiron highlighted that the firm’s focus this year centered on delivering measurable outcomes for customers, maintaining safety standards, and achieving solid operational and financial results. He said, “This year we’ve focused on disciplined execution across our key deliverables of customer outcomes, safety, and operational and financial performance. That’s resulted in a set of strong financial results and leaves us well positioned to continue delivering the services and infrastructure our customers rely on.” Total customer connections slipped marginally by 0.5% to 119,991 over the year.
The combination of higher revenue, disciplined spending and a sizable dividend points to a solid footing for Vector as it moves forward in New Zealand’s energy distribution landscape.
Source: nzherald.co.nz · 2026-08-17