Here are the key changes to know about in the New Zealand equity market; Heartland, Infratil, Contact, and Channel Infrastructure lead the gains with Meridian, Serko, Freightways, and Hallenstein the main decliners

Here are the key things you need to know about in the NZX markets over the past 24 hours. Changes are as at 3:00 pm and may change when the market closes at 4:45 pm.

WHAT THE NZX 50 INDEX IS DOING
The NZX50 has gained +0.7% today, gaining +2.5% over the last five days. Over the last six months the index has dropped -4%, up +2.5% year-on-year.

THE MAIN GAINERS
There are 37 gainers in the equity market today, led by Heartland Group Holdings (HGH, #35), which rose a strong +7%, gaining +3% over the past five days. Despite the short-term lift, Heartland is down -3% for the month and -30% year-on-year. Infratil (IFT, #4) added +4%, up +5% over the past week, though still down -4% compared to a year ago. Contact Energy (CEN, #7) rose +2%, bringing its year-on-year performance to +9%. Channel Infrastructure (CHI, #34) also climbed +2% today, gaining +4% over the past six months and a solid +27% year-on-year.

THE MAIN DECLINERS
The 29 decliners were led by Meridian Energy (MEL, #2), which dropped -3% today. While still up +7% over the last month, it's down -2% year-on-year. Serko (SKO, #45) fell -1%, extending its year-on-year decline to -7%. Freightways (FRW, #19) also lost -1%, down -5% for the month but still up +19% over the year. Hallenstein Glassons (HLG, #42) slipped -1% today, down -4% over the past five days, though it remains up +31% year-on-year.

SMARTSHARES EFTs

KEY ANNOUNCEMENTS
Mercury Energy (MCY, #5) has revised its FY2025 EBITDAF guidance down from $820m to $760m, citing an expected 150GWh drop in full-year hydro generation to 3,400GWh due to ongoing dry conditions in the Taupō catchment and projected below-average inflows and lake levels through to 30 June 2025. Dividend and capital expenditure guidance remain unchanged at 24.0 cents per share and $150m respectively.

Meridian Energy's (MEL, #2) March 2025 operating update highlights weak inflows and storage levels, with national hydro storage rising slightly to 77% of historical average by mid-April. March inflows were only 60% of average, with the Waitaki and Waiau catchments at 71% and 56% respectively. The month was notably dry and warm, particularly in the South Island, contributing to a -2.8% drop in national electricity demand. Retail sales volumes were +3.1% lower than March 2024, with strong growth in large business and corporate segments but a sharp 40.8% fall in agricultural sales. For the March quarter, Meridian recorded the lowest Q3 inflows in 92 years at just 48% of average, down -50% on the same quarter last year. Generation was -4.9% lower, though realised prices were up +19.6%. National electricity demand fell -4.5%, while smelter volumes also dropped. Retail sales volumes declined -4.0%, but average prices rose +5.5%. Customer numbers increased +5.8%, and operating costs fell -1.0%, while capital expenditure dropped sharply by 77.6%.

Scales Corporation (SCL, #37) has acquired an additional 7.5% stake in its US-based pet food ingredients business, Shelby JV LLC, for USD $24.4m. Managing Director Andy Borland says the increased investment reflects Shelby’s strong performance and strategic value since Scales' initial 2018 entry, with earnings growth materially exceeding expectations. The valuation considers Shelby’s improved business structure, diversified customer base, and alignment with Scales' global single-brand strategy. Chair Mike Petersen says the move strengthens Scales’ position in the US market and supports its long-term goal to grow its Global Proteins division. The transaction, funded through USD term debt, settles on 16 April and applies to FY2025 earnings. As a result, Scales has lifted its FY2025 guidance for Underlying Net Profit After Tax Attributable to Shareholders to $37–$42m, with overall NPAT guidance now $51.5–$58.5m. Underlying EBITDA guidance remains unchanged.

Spark (SPK, #12) has announced a strategic IT agreement with Infosys aimed at transforming its technology delivery model and reducing operating costs. The collaboration will utilise Infosys’ AI and cloud capabilities—Topaz and Cobalt—while Infosys provides global DevOps and software engineering support across Spark’s systems. Spark will retain control over its technology architecture and innovation roadmap, while Infosys expands its local presence to ensure continuity of in-market expertise. This forms part of Spark’s broader SPK-26 Operate Programme, which targets $80–$100m in net labour and opex reductions in FY25 and up to $140m in annualised benefits by FY27.

Air New Zealand (AIR, #18) has provided a trading update for the second half of the 2025 financial year, highlighting a substantial reduction in anticipated engine compensation, despite an increase in grounded aircraft. The airline continues to deal with unpredictability in engine maintenance schedules for its Airbus neo and Boeing 787 fleets, with 11 aircraft currently grounded. Ongoing negotiations with engine manufacturers are complicated, and while compensation for unserviceable engines was higher in the first half, it will now be lower in the second half due to a shift in the compensation framework. The airline expects to receive $35m to $40m in compensation, significantly lower than the $94m recognised in the first half. Despite benefiting from lower fuel prices, operational complexity persists as the airline operates fewer aircraft than planned, and the recent US tariff announcements add further uncertainty. Based on these factors, Air New Zealand forecasts earnings before taxation for the 2025 financial year to be between $150m and $190m.

Heartland Group Holdings (HGH, #35) has provided a trading update for the three months to 31 March 2025 (Q3), confirming it remains on track to achieve at least $45m in net profit after tax (NPAT) for the financial year ending 30 June 2025 (FY2025). Key highlights include:

• Net Interest Margin (NIM): There was a 28 basis point improvement in NIM for Q3, compared to the first half of FY2025, driven by both Heartland Bank and Heartland Bank Australia.

• Operating Expenses (OPEX): OPEX remained stable in Q3, and both banks are on track to meet OPEX expectations for the second half of FY2025. Cost management initiatives are in place to improve efficiency moving forward.

• Asset Quality: Heartland Bank’s Motor Finance portfolio has shown improvements, particularly after implementing more prescriptive collections and recovery policies. Early recovery efforts for loans written off in February 2025 have exceeded expectations.

• Growth in Receivables: The company has seen strong growth in gross finance receivables, particularly in Reverse Mortgages and Livestock Finance, in both New Zealand and Australia.

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