INTERIM REPORT
2025/2026
OUR INVESTMENT PORTFOLIO
Infratil's total asset value was NZ$19 billion at 30 September, based on a combination of independent valuation, market and book values, with assets diversified across four sectors:
$934m
$331m
$487m
$618m
$3,709m
5%$2,273m 8%
$35m
$555m
$344m
21% 66%$849m
$164m
$789m
$179m
$7,716m
FY25
FY24
FY23
FY22
FY21
FY20
FY19
FY18
FY17
FY16
IFT TSR
22.8%
19.2%
13.8%
18.4%
Period1
5 -year
10 - year
20 - year
Since inception
1. Returns are calculated to 30 September 2025
300%
200%
100%
0%
-100%
FY15
Total shareholder return has been 19% per annum over a ten-year period, assuming that all dividends and the value of rights issues were reinvested when received.
600%
500%
400%
Cumulative Annual Return (%)
TOTAL SHAREHOLDER RETURNJOINT LETTER FROM THE CHAIR AND CHIEF EXECUTIVE
We've successfully navigated through the noise of the market and regulatory challenges that faced our digital and renewables businesses in early 2025.
Our international growth businesses, Longroad Energy in the United States and CDC in Australasia, are building strong earnings momentum on the back of new waves of demand and our ongoing investment in their infrastructure assets.
There were still challenges. While our New Zealand businesses have been largely resilient, the weak New Zealand economy has continued to constrain their performance.
The geographic and sector diversity of our portfolio meant we were able to grow proportionate operational EBITDAF 1 to NZ$514 million in the first half of FY26 (HY26). This was up 7% from the prior HY25 period. Proportionate capital expenditure was down $52 million, to $1,139 million, when comparing HY26 and HY25.
Our portfolio asset value grew by $735 million, to just over
$19 billion, in HY26. This and reduced market uncertainty helped lift our share price from $10.38 to $12.35 during the period.
We're pleased to confirm an interim dividend of 7.25 cents per share, partly imputed, to be paid on 16 December. The dividend reinvestment plan is available, with a 2% discount, for those shareholders who choose to participate.
PROPORTIONATE EBITDAF 1HY24
HY25
HY26
One NZ is the biggest contributor at about 58% of proportionate EBITDAF, with contributions from CDC and Longroad growing meaningfully. Other renewables (Galileo, Gurīn Energy, Mint Renewables) incurred $32 million of EBITDAF losses as they invest in early-stage development.
NZ$m -100 0 100 200 300 400 500 600
PROPORTIONATE CAPEXHY24
HY25
CDC and Longroad Energy accounted for 69% of proportionate capex in HY26, with Longroad's spend reducing by about
$135 million from HY25 levels due to project timing.
HY26
NZ$m 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200
ASSET VALUEHY24
HY25
HY26
Total asset value of ~$19 billion, up $735 million in HY26, largely due to Infratil's acquisition of another 1.58% ownership in CDC which has helped lift it to 41% of
total asset value. Renewables asset composition changed with a 9.47% stake in Contact Energy following the sale of Manawa Energy.
NZ$m 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
EBITDAF is an unaudited non-GAAP measure of net earnings before interest, tax, depreciation, amortisation, financial derivative movements, revaluations, and nonoperating gains or losses on the sales of investments and assets. Proportionate EBITDAF shows Infratil's operating costs and its share of the EBITDAF of the companies it has invested in. A reconciliation of net profit after tax to Proportionate EBITDAF is provided in the 13 November 2025 HY26 results presentation.
PORTFOLIO SET FOR GROWTHAs we explained at our Investor Day in September, our growth over the last five years has reached a point where we needed to review the role of the businesses within the 'pillars' of our portfolio. This marks another notable juncture in Infratil's evolution.
While we always make an investment decision with a view to holding an asset for the long-term, we're now simplifying the current portfolio and divesting businesses unlikely to scale or deliver meaningful returns under our ownership. Action we've taken so far has included:
8 August: we announced the sale of our 50% stake in RetireAustralia for NZ$331 million, with the transaction due to be completed by the end of 2025.
18 September: we announced a strategic review of Australian medical imaging business Qscan, with our 57% shareholding last valued at NZ$487 million.
13 November: we announced the sale of our 20% stake in Fortysouth for more than $200 million and the sale of a legacy property asset for $55 million.
We have a $1 billion divestment target over the medium term and we expect to reinvest the proceeds into existing or new opportunities in sectors driven by strong thematics. This includes prioritising capital towards high conviction assets, such as CDC and Longroad Energy, which continue to be standout performers for us.
Another feature of our strategy refresh is our focus on balancing our operating cash flow and dividends. Our core 'pillar 1' assets -Contact Energy, One NZ, Wellington Airport - have a clear role as cash flow generators, with ongoing optimisation to drive continued distributions. We expect these distributions to cover fixed costs and support sustainable dividends in the medium term. As 'pillar 2' assets like CDC and Longroad Energy develop mature operating bases, they will also have more ability to reinvest and fund further distributions to Infratil.
Our 'pillar 3' assets are those smaller businesses that we are looking to identify and develop into $1 billion-plus businesses over three to five years. Our Manager, Morrison, is continually scanning for new sectors and businesses that we could add to this part of the portfolio. Gurīn Energy is an example of one such business poised for potentially transformational growth and its success would in turn help maintain CDC's relative weighting in the portfolio.
OUR INVESTMENT PORTFOLIO STRATEGYIDEAS THAT MATTER
PORTFOLIO CONSTRUCTION APPROACH
PILLAR 1
Cashflow generators Scaled business with enough diversity for stability
PILLAR 2
Mature growth platforms Scaled business, more concentrated to drive returns
PILLAR 3
Future growth platform Multiple smaller businesses that can scale to $1bn+ over 3-5 years
*
INFRASTRUCTURE CHARACTERISTICS
ATTRACTIVE GLOBAL THEMATICS
* Strategic review announced September 2025
Contact Energy's Glenbrook battery project will be one of New Zealand's largest grid-scale energy storage systems and will support resilience of the electricity grid.
Our conviction in the renewable energy sector is reflected in the fact it now comprises approximately 21% of our portfolio, with Longroad Energy and Contact Energy our two largest investments. We favour renewables because they deliver sustainable long-term societal benefits and because they make sound financial sense.
This thematic, together with our strategy to bolster the cash flow generating businesses within our portfolio, was a large part of our decision to acquire an additional 4.92% holding in Contact. By funding the $438 million transaction
with a combination of debt and new Infratil shares, we've preserved our funding flexibility for future growth.
At the same time, we're confident in the opportunities created by Contact's merger with Manawa. Contact now has about 500 megawatts (MW) of additional capacity and winter-weighted electricity generation, meaning it has a more diverse and resilient hydro generation portfolio. It also has a large attractive development pipeline, from which it can choose to progress the highest value options. Its current investment programme includes:
completing the Te Mihi Stage 2 geothermal power plant near Taupō
building a 100MW battery storage system at Glenbrook near Auckland
building, with its joint venture partner, a solar farm near Christchurch Airport to generate 168MW (at peak)
development plans for a 100MW battery system in Stratford, Taranaki; a 179MW joint venture solar farm at Glorit, north of Auckland; and a 1,200GWh per year Southland Wind Farm.
There is plenty happening across our other renewables businesses, with highlights since our full year results including:
- Longroad Energy (USA) earnings grew strongly with
gigawatts (GW) of new capacity in HY26. It now has
3.5GW of operating capacity and is constructing more to meet the soaring demand for electricity being driven by new data centres, industrial growth and electrification. In September, financial close of the 1,000 Mile solar project was announced. It will provide 400MW to advance Meta's target to support its data centre operations with 100% clean energy.
- Gurīn Energy (Asia) has identified a pipeline of about 9GW of potential projects, including 303MW of wind and solar recently acquired in South Korea. Work is continuing on Project Vanda, to deliver solar energy from Indonesia to Singapore. About 90% of the necessary land is secured and the next major milestone is an export licence from the Indonesian government.
- Galileo (Europe) has a 16GW project pipeline across 10 Markets, including onshore wind projects in France, Germany, Italy, Spain and the UK. The Barium Bay 1.1GW floating offshore wind project, in the Southern Adriatic Sea, received a positive Environmental Impact Assessment decree. About 230MW of solar and battery storage projects in Italy received final authorisations, while 140MW of battery projects in the UK and Italy were sold to crystallise value.
- Mint Renewables (Australasia) announced a strategic joint venture with Ngai Tahu Holdings in August. Called Mint Aotearoa, it will combine Mint's supportive long-term capital and deep technical expertise in renewable energy with Ngai Tahu Holdings' strong local commercial presence, rooted in Ngai Tahu values and iwi governance structures.