Steady performance supports continued investment and community returns
The Orion Group has delivered a profit after tax of $35.4 million for FY26, slightly above its Statement of Intent target.
The result reflected the first year of the Commerce Commission’s DPP4 regulatory period. Higher delivery revenue and a strong contribution from Connetics were offset by increased operating costs, depreciation and interest.
As a regulated electricity distribution business, Orion’s revenue and profitability are largely determined by the Commerce Commission. The timing of revenue recovery can vary from year to year, resulting in fluctuations in reported profit over the regulatory period.
“Our financial performance reflects the settings we operate within, as well as the ongoing cost pressures being felt across the sector and wider economy. It’s important to take a long-term view of how we invest for our customers’ benefit and our region’s future,” says The Orion Group Chief Executive Nigel Barbour.
The result enabled Orion to pay a $30 million dividend to its shareholders, Christchurch City Council and Selwyn District Council, in line with its target.
“We need to ensure we can continue investing in a safe, reliable and resilient electricity network, while balancing affordability for our customers. Returning value to our shareholders is part of that broader responsibility to our community,” says Nigel.
Orion continued to invest in its network during the year, as it prepares for growing demand and a more complex energy future, while operating in what remains a complex economic and regulatory environment.