Table of Contents
What changed
Revenue rose 20.1% to NZ$3,439m and EBITDAF advanced 29.2% to NZ$872m, with PBT up 37.0% to NZ$463m and NPAT up 40.6% to NZ$331m. Operating cash flow, however, fell 6.2% to NZ$544m despite the earnings uplift. Capex eased to NZ$449m from NZ$506m, allowing company-defined free cash flow of NZ$434m (FY24: NZ$471m). Cash and equivalents rose to NZ$514m from NZ$229m, but this was funded by gross borrowings expanding NZ$536m to NZ$2,449m; net debt rose to NZ$1,935m. Net debt/EBITDAF still improved to 2.2x from 2.5x as earnings expanded faster than debt. The final dividend was held at 23.0c.
What matters
- Cash conversion stepped down sharply. OCF/EBITDAF fell to 62.4% from 85.9%, driven by a NZ$155m operating working-capital build: receivable days extended to 27.9 from 20.8 and inventory days to 14.0 from 9.8. This is the single biggest disconnect in the result.
- Leverage improved on the ratio but rose in dollars. Borrowings grew 28% and net debt is about NZ$251m higher, yet the leverage multiple compressed because EBITDAF grew faster. The cash buffer (NZ$514m) is elevated and looks positioned for the Glenbrook battery and continuing growth capex.
- ROE rebuilt to 12.0% from 9.0% and the effective tax rate eased to 28.5% from 30.5%, so PBT growth of 37.0% is the cleaner operating read versus the headline 40.6% NPAT gain.
Expectations
No quantitative guidance or forward-work disclosure was provided in the supplied excerpts, and no stated targets were identified. The HY25 shape (49.6% of revenue, 46.3% of EBITDAF, 42.9% of NPAT) implies a second-half-weighted pattern: implied H2 EBITDAF of NZ$468m versus H1 NZ$404m, and implied H2 NPAT of NZ$189m versus H1 NZ$142m. The release does not support a judgement on FY26 trajectory beyond flagging Te Huka 3 commissioning and the Glenbrook 100MW battery (Q1 2026 target from the prior-period commentary).
Quality of result
Mixed. The P&L improvement is broad-based — revenue, EBITDAF, PBT and NPAT all stepped up meaningfully, and the tax gap is small enough that the result is not tax-assisted. However, the reported EBITDAF includes a release of the Ahuroa gas storage that was not separately quantified in the excerpts, which is a non-recurring flavour the reader cannot size. More importantly, the NZ$155m working-capital absorption means a material portion of the earnings uplift has not yet converted to cash: FCF/NPAT fell to 131% from 200%, and OCF actually declined in absolute terms. The dividend remains covered by FCF (payout 42.2%), but the quality gap between accounting earnings and cash earnings is the issue this result leaves on the table.
Unresolved
- How much of the EBITDAF uplift is attributable to the Ahuroa gas storage release versus underlying retail and generation performance?
- Is the receivables and inventory build a pricing/timing artefact that unwinds in H1 FY26, or a structural shift tied to higher wholesale prices and hedging positions?
- What is the expected cadence of remaining capex on Te Huka 3 and Glenbrook, and does the NZ$514m cash position signal incremental projects or simply pre-funding?
- Why was the final dividend held flat despite NPAT up 41% and leverage improving — does this reflect capex intent rather than earnings quality concerns?
This briefing cannot assess pricing, volume, hedge-book positioning, or segment contribution, as no segment or operating KPI data was supplied.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $3439m | $2863m | +20.1% ↑ |
| Net profit after tax | $331m | $235.3m | +40.6% ↑ |
| Net cash inflow from operating activities | $544m | $580m | -6.2% ↓ |
| Final dividend per share | 23.0c | 23.0c | flat |
| EBITDAF | $872m | $675m | +29.2% ↑ |
| Profit before tax | $463m | $338m | +37.0% ↑ |
| Cash and cash equivalents | $514m | $229m | +124.5% ↑ |
| Total assets | $6813m | $6208m | +9.7% ↑ |
Reference: annolyse.ai/briefings/cen-fy25
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +37.0% | — | cleaner earnings measure |
| Effective tax rate | 28.5% | 30.5% | — |
| OCF / EBITDAF (cash conversion) | 62.4% | 85.9% | deteriorated |
| FCF pre-lease | $434.0m | $471.0m | −$37.0m |
| FCF / NPAT | 131.1% | 200.1% | complementary conversion metric |
| Capex % revenue | 13.1% | 17.7% | — |
| Capex | −$449.0m | −$506.0m | +$57.0m |
| Free cash flow | $434.0m | $471.0m | −$37.0m |
| Debtor days | 27.9 | 20.8 | +7.1 days |
| Inventory days | 14.0 | 9.8 | +4.2 days |
| Operating working capital | $395.0m | $240.0m | +$155.0m absorbed |
| Trade debtors | $263.0m | $163.0m | +$100.0m |
| Net debt | $1935.0m | $1684.0m | +$251.0m |
| Net debt / EBITDAF | 2.22x | 2.50x | Strengthening |
| Gross borrowings | $2449.0m | $1913.0m | +$536.0m |
| Payout ratio vs NPAT | 55.3% | — | — |
| Payout ratio vs FCF pre-lease | 42.1% | — | covered |
| ROE (annualised) | 12.0% | 9.0% | Strengthening |
| HY25 share of FY25 revenue | 49.6% | — | Other half was 50.4% |
| HY25 share of FY25 EBITDAF | 46.3% | — | Other half was 53.7% |
| HY25 share of FY25 NPAT | 42.9% | — | Other half was 57.1% |
| Profit from continuing operations | $331.3m | $235.3m | +$95.9m |
Reference: annolyse.ai/briefings/cen-fy25
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.