Macquarie Technology Group delivers 12th straight year of EBITDA growth in FY26
In its FY26 full year results for the period ended 30 June 2026, Macquarie Technology Group recorded record revenue of $390.0m, up 6%, and EBITDA of $115.9m, up 2%, marking its twelfth consecutive year of EBITDA growth.
The result was accompanied by two standout strategic developments: the Commonwealth Government secured as a new investor through the National Reconstruction Fund Corporation (NRFC), and continued data centre expansion via IC3 SuperWest and a new Macquarie Park site.
Earnings per share declined 8% to 124.6 cents, a consequence of increased financing and depreciation costs tied to the Group’s data centre investment programme.
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FY26 financial results at a glance
The headline group numbers reflect steady top-line growth alongside strong cash generation and a highly recurring revenue base.
| Metric ($m) | FY24 | FY25 | FY26 | % Change (FY25 v FY26) |
|---|---|---|---|---|
| Total Revenue | 363.3 | 369.6 | 390.0 | +5.5% |
| Total EBITDA | 109.1 | 113.6 | 115.9 | +2.0% |
| EBIT | 51.1 | 57.4 | 58.2 | +1.4% |
| NPAT | 33.0 | 34.9 | 32.1 | -8.0% |
| Operating cash flow | — | 109.9 | 94.6 | — |
The EBITDA margin came in at 29.7%, in line with guidance. Beyond the headline figures, several quality signals stood out:
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Operating cash flow of $94.6m, representing cash conversion of 108%.
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95% of revenue derived from contracted monthly recurring revenue.
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A 3-year revenue CAGR of 4.2% and EBITDA CAGR of 4.0%.
Segment performance — data centres and cloud drive the growth
Growth in FY26 was led by the Data Centres and Cloud Services & Government segments, while Telecom continued to reflect structural industry changes.
Data Centres
The Data Centres segment delivered revenue of $87.0m, up 8.9%, and EBITDA of $40.0m, up 9.3%, at an EBITDA margin of 46.0%. The reported margin was impacted by data centre development activity costs and increased power consumption by hyperscalers. Excluding these factors, the underlying margin remained flat. The segment counts 2 of 3 major hyperscalers as customers.
Cloud Services & Government
Cloud Services & Government recorded revenue of $235.6m, up 11.2%, with EBITDA of $55.9m, up 5.5%. Macquarie is Australia’s largest managed sovereign private cloud provider, operating 7 zones across Sydney, Canberra and Perth.
The segment successfully delivered the largest Security Service Edge (SSE) deployment for the Australian Taxation Office. It counts 42% of Australian Government agencies as customers and monitors over 600 billion events per month.
Telecom
Telecom revenue declined 6.6% to $105.2m, with EBITDA down 16.7% to $20.0m. The decline reflected structural NBN pricing and mix changes, including the transition from higher-margin voice services toward lower-margin data services. Telecom continues to serve a strategic role as a channel for CS&G services and secure networking growth through SD-WAN and SASE.
What is sovereign data centre infrastructure?
A sovereign data centre keeps sensitive Government and critical-infrastructure data physically onshore and under Australian control, an increasingly important requirement as cyber threats grow. Certification to defined security standards demonstrates a facility meets the frameworks needed to host this data.
The term “hyperscaler” refers to the largest global cloud providers, whose workloads, particularly AI, require purpose-built high-density facilities. IC3 SuperWest, for example, is designed with a mix of direct-to-chip liquid and air cooling to support these deployments.
The investment significance is clear from a competitive standpoint. Macquarie remains the only company to have both its cloud and data centre services certified to ‘strategic’ level by the Department of Home Affairs.
Commonwealth Government backs Macquarie with $200m NRFC investment
The Australian Government invested $200 million into Macquarie via the National Reconstruction Fund Corporation (NRFC), a sovereign investment fund supporting nationally significant technological innovation, digital infrastructure, defence and national security. The investment represents a notable validation of the Group’s sovereign infrastructure role.
The capital is structured as perpetual, callable, subordinated, unsecured and non-convertible securities, drawn in two series of $100 million. The first issuance was completed on 1 June 2026, with the second by 1 March 2027.
The NRFC hybrid investment is structured with a fixed distribution rate of 6.00% per annum, equating to an effective return of approximately 8.57% when franking credits are included, a pricing outcome the company described as competitive for its cost of capital.
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Non-dilutive: No equity dilution.
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$200m: Hybrid investment.
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2 x $100m: Tranches to March 2027.
The Group described the capital as efficient and non-dilutive, enhancing balance sheet flexibility and diversifying its funding sources to support the development of sovereign, secure digital infrastructure.
Building for the AI era — IC3 SuperWest and the new Macquarie Park campus
The Group’s data centre expansion forms the core of its forward growth thesis.
IC3 SuperWest on track for September 2026
Construction of IC3 SuperWest remained on time and on budget, with an initial 6MW of Phase 1 capacity to be commissioned and completion expected by September 2026. Long lead-time equipment has been secured to support a further 13MW, providing visibility to 19MW of deployed capacity ahead of customer contracts.
The facility has a design capacity of 47MW, lifting the Macquarie Park campus to 65MW. Negotiations with an anchor customer were described as well progressed.
New $240m Macquarie Park site — the METC
On 6 August 2026, after period-end, Macquarie completed the acquisition of a ~34,200sqm site in Macquarie Park for a purchase price of $240 million plus transaction costs (total land cost stated as $254 million in the FY27 outlook).
The site underpins the proposed ~200MW Macquarie Engineering & Technology Campus (METC), bringing MDC’s total capacity to an estimated ~268MW, of which 265MW is located within Sydney’s Tier 1 Northern Zone. The campus builds on Macquarie’s partnership with Macquarie University, with initial construction estimated for completion in late calendar year 2029, subject to planning and other approvals.
The Macquarie Park campus acquisition remains partially financed at the land stage, with construction funding options including capital recycling of existing assets and development partnerships still under evaluation ahead of the late 2029 targeted completion.
Balance sheet strength and funding capacity
The Group ended FY26 well-positioned to fund its capital programme. It held cash of $4.9m, an undrawn debt facility of $496.5m, and $100m of Hybrid Securities Series 2 available for growth initiatives. Total equity grew to $620.0m, up from $487.0m.
FY26 capital spend totalled $230.5m, comprising Growth Capex of $193.3m (including $186.2m for IC3 SuperWest), Customer Growth Capex of $21.6m, and Maintenance Capex of $15.6m.
Company Purpose
“To make a difference in markets that are underserved and overcharged.”
FY27 outlook — a year of strategic investment
Management provided the following forward guidance as company disclosure. Group EBITDA is expected to see modest growth in FY27, assuming IC3 SuperWest Phase 1 revenue commences in 2H FY27.
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CS&G revenue is expected to grow modestly, with FY26 margins likely to be maintained.
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Telecom EBITDA is expected to reduce by $2m–$3m, with margins anticipated at mid-to-high teens levels after the NBN pricing reduction has been passed to customers.
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Group capex is expected to be $485m–$506m in FY27.
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METC holding costs are estimated at approximately $1m–$2m per annum (excluding financing costs).
The company framed FY27 as a year of strategic investment, establishing the foundations for the next phase of growth across CS&G AI, cyber security and cloud, and Telecom secure networking solutions.
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