NZX50 snaps 3-day gain as Meridian slides
Ebos gave back earlier gains as investors eyed its shrinking margins.
Wednesday, February 25th 2026, 6:23PM
by Paul McBeth
New Zealand’s S&P/NZX 50 index snapped a three-day gain with Meridian Energy the biggest drag on the benchmark after the country’s biggest electricity generator delivered first-half earnings largely in line with expectations as Mother Nature played ball.
Ebos Group gave back earlier gains as investors looked past the healthcare products maker’s revenue gains to its shrinking margins, while apple exporter Scales Corp dipped after meeting its recently upgraded earnings guidance and Steel & Tube Holdings tumbled after hitting the brakes on merger and acquisition activity as it continues to clamp down on costs.
New Zealand tech stocks were mixed after the Nasdaq’s rally on Wall Street extended into Asia, with Australia’s WiseTech Global surging on aggressive job cuts as it embraces new artificial intelligence agents to replace those people.
And futures markets took a softly-softly approach to US President Donald Trump’s record-long state of the union address, where he touted his economic agenda and focus on affordability, and warned of a military strike on Iran if the Middle Eastern nation didn’t accede to curbing its nuclear ambitions.
Red toes
The NZX50 decreased 6.73 points, or 0.1%, to 13,525.58, with 23 stocks declining, 22 gaining and five unchanged. Turnover across the main board was $154.3 million, of which Fisher & Paykel Healthcare accounted for $26.2 million as the medical device maker rose 1% to $40.10 in its third straight gain.
Meridian Energy was the biggest drag on the index as it fell 3.1% to $5.56 after almost doubling first-half earnings and delivering an interim dividend in line with expectations. The electricity generator-retailer bounced back from a dry year in the prior period, when low hydro storage sapped its operations.
“Mother Nature came to the party after the 2024 drought conditions,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene.
“It really does show how sensitive the gentailers are to hydro and wind.”
The other power companies were all weaker as Genesis Energy slipped 2.1% to $2.33, Contact Energy decreased 0.9% to $9.25 and Mercury NZ declined 0.3% to $6.28.
Scales Corp dipped 0.9% to $6.27 after the apple exporter met its recently upgraded guidance as underlying profit rose 45%, with gains across all its divisions.
Serko posted the biggest decline on the NZX50, sinking 7.3% to $1.90 in a mixed day for tech companies, while Vista Group International dropped 1.5% to $1.675.
Grumbling in the back rows
Gentrack posted the biggest gain on the index as it climbed 5.6% to $7.60 on light volume after holding its annual meeting where chair Andy Green talked up the firm’s ability to navigate the dynamic market for software companies, although shareholders delivered a rebuke in the vote on executive remuneration with 37% opposed to the long-term scheme.
Outside the benchmark, Eroad climbed 5.1% to 93 cents.
Spark New Zealand was the most heavily traded stock on the day with a volume of 2.8 million as it increased 0.9% to $2.25.
Tech stocks were strong across Asia after the Nasdaq’s recovery on Wall Street overnight and ahead of Nvidia’s quarterly earnings. Australia’s S&P/ASX 200 index was up 0.9% in late trading, with Xero advancing 5.5% and WiseTech Global jumping 11% after the software firm announced plans to slash up to half its product development team in customer service, where it will use AI to cut costs.
Japan’s Nikkei 225 index was up 2.2% in late trading, while Hong Kong’s Hang Seng advanced 0.8%.
Meanwhile, futures were pointing to a 0.1% increase for the S&P 500 when Wall Street opens after US President Donald Trump delivered his state of the union address, talking up the White House’s economic policies and threatening a strike on Iran could happen if the Middle Eastern nation didn’t agree to reining in its nuclear programme.
The kiwi dollar traded at 59.75 US cents at 5pm in Auckland from 59.62 cents yesterday, while gold futures were up 0.5% at US$5,201 an ounce and Brent crude oil futures increased 0.6% to US$71.01 a barrel.
Among other domestic companies reporting today, Steel & Tube Holdings sank 11% to 56.5 cents after the steel products distributor said it’s paused M&A activity while it focuses on cutting costs in the face of a gradual economic recovery.
Bremworth increased 0.8% to 66 cents as gross margins were squeezed in the first half and an operating cash outflow ate into funds the carpetmaker wants to return to investors if it sells its business to Mohawk Industries’ Floorscape.
Locate Technologies was unchanged at 7.4 cents after the software company running a Bitcoin treasury strategy reported a first-half loss as the value of its crypto holdings declined and it recognised the cost of switching its listing to the NZX.
Metro Performance Glass nudged up 2.6%, or 0.1 of a cent, to 3.9 cents after saying it will run a one-for-40 share consolidation after the close of trading on March 5.
Paul is a staff writer for Good Returns based in Wellington.
| « F&P Healthcare powers NZX50 higher as AI-pocalypse runs into earnings | NZX50 climbs 1.1% in earnings season flurry » |
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