NEXTDC caps largest contracting year in its history with FY26 revenue and earnings above guidance
In its FY26 full-year results, NEXTDC reported the largest contracting year in the company’s history, with net revenue and Underlying EBITDA both landing above guidance for the year ended 30 June 2026.
Net revenue rose 16% to A$405.0m, ahead of guidance of A$390m to A$400m, while Underlying EBITDA (a non-statutory measure) increased 15% to A$248.8m, above the guided A$230m to A$240m range.
The headline driver was contracted utilisation, which surged 202% to a pro forma 740.1MW (as disclosed on 21 July 2026). A record Forward Order Book of 565MW now underwrites revenue and earnings growth through to FY30.
Management guided FY27 net revenue and Underlying EBITDA to grow by more than 50%, positioning NEXTDC with a binding, contracted growth runway rather than an aspirational one.
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FY26 financial results outperform on every headline metric
The FY26 result marked a return to statutory profit after tax of A$82.1m, compared with a loss of A$60.5m in FY25. This swing includes a non-cash A$128.8m fair value gain on investment property recognised in profit or loss, so the improvement should not be read as purely operational.
Underlying EBITDA growth of 15% offers a cleaner view of operating performance, as it is calculated without the fair value gain. Billing utilisation, the capacity currently generating revenue, rose 58% to 175.0MW.
| Metric | FY26 (A$m) | FY25 (A$m) | Change A$m | Change % |
|---|---|---|---|---|
| Total revenue | 496.5 | 427.2 | 69.3 | 16% |
| Net revenue | 405.0 | 350.2 | 54.8 | 16% |
| Underlying EBITDA | 248.8 | 216.7 | 32.1 | 15% |
| Profit / (loss) after tax | 82.1 | (60.5) | 142.6 | nmf |
Cost growth reflects investment ahead of expansion
Operating costs rose across the board, framed by management as investment ahead of more than 400MW of built capacity growth planned across FY27 and FY28.
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Direct costs up 19%, driven by customer energy consumption in line with increased billing capacity.
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Facility costs up 17%, reflecting land acquisitions, higher headcount across new and expanded facilities, and maintenance on built capacity.
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Corporate costs up 17%, as NEXTDC invested in systems and people to support new site expansion and accelerating deployments.
Understanding the Forward Order Book — why 565MW matters
For investors weighing the growth story, three terms are central. Contracted utilisation represents binding customer contracts. Billing utilisation is the capacity already generating revenue. The Forward Order Book is the gap between the two: capacity that is contracted but not yet billing.
As capacity is built and customers move in, that Forward Order Book converts into billing revenue. In the company’s words:
“Every MW in the Forward Order Book is a binding customer contract.”
NEXTDC stated that its 565MW Forward Order Book, combined with existing billing, is expected to generate Contracted EBITDA in excess of A$1.0bn from existing contracted utilisation. This is a forward-looking, non-statutory management estimate and remains subject to risks and assumptions.
The mechanism gives investors visibility on revenue years in advance, helping to de-risk the growth trajectory.
The 250MW contract win in Q3 FY26 was the single largest quarterly addition in NEXTDC’s history, lifting pro forma contracted utilisation to 667MW and pushing the Forward Order Book to 544MW before the final tranche of FY26 contracts brought the year-end figure to 740MW.
Conversion timeline to FY30
The 565MW Forward Order Book is expected to convert to future billing as follows:
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FY27: 197MW
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FY28: 221MW (74% of the order book converts within two years)
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FY29: 80MW
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FY30: 67MW
A$10.2bn balance sheet and A$8.7bn liquidity fund the pipeline
The scale of NEXTDC’s capital formation is the funding engine behind its contracted growth. Total assets reached A$10.2bn, with pro forma available liquidity of A$8.7bn, comprising A$876m in cash, A$7,100m of undrawn senior debt facilities, and the A$700m Hybrid Securities B Delayed Draw Series.
Gearing stood at 11% excluding Subordinated Capital, or 29% including it, so both figures warrant attention rather than a single headline number.
All drawn senior debt and subordinated capital was hedged as at 30 June 2026, and NEXTDC reported no debt maturities until FY30 (December 2029).
The A$1.8 billion senior debt commitment secured in May 2026 from a syndicate of eight major banks, including all four major Australian banks, was a key component of the A$5.8 billion total senior debt raised across FY26, and its Financial Close in July 2026 contributed directly to the A$8.7 billion pro forma liquidity position reported at year end.
A$9.75bn raised across FY26
NEXTDC raised a total of A$9.75bn of new capital on a pro forma basis during FY26 to support its record contracted commitments and development pipeline:
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Senior debt: A$5.8bn across two transactions, announced in August 2025 and July 2026.
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Subordinated Notes: A$750m, announced in April 2026, swapped to an effective fixed rate of 8.2%.
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Hybrid Securities: A$1.7bn across two tranches, announced in April 2026.
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Equity: a A$1.5bn pro rata entitlement offer completed in May 2026, with 98% institutional and 85% retail take-up.
The company continues to evaluate partnering with third party capital through a JVCo structure for S4, S7 and M5 as those projects secure new customer commitments and advance through development milestones, a pathway management frames for the 2027+ period.
Operational scale — 740MW contracted, 537MW in construction, 5GW+ pipeline
NEXTDC ended the period with 288MW of built capacity, having delivered 80MW during FY26, and 537MW currently in construction. Contracted utilisation represented 257% of built capacity, underscoring the demand ahead of delivery.
The demand mix continues to shift toward large-scale deployments. More than 70% of billing now comes from hyperscale, 95% of contracted MW is drawn from Cloud & AI, and 75% of contracted MW sits at a power density above 9kW. Hyperscale developments are targeting a Yield on Cost above 10%.
Network expansion progressed across M3, M2 and S4, while international sites advanced with KL1 open and holding a foundation customer, TK1 excavation and retaining works in progress, and AK1’s resource consent lodged.
5GW+ development pipeline
NEXTDC’s regional development pipeline, all subject to approvals, acquisitions and partnerships, spans:
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Sydney Region: 1.5GW+
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Melbourne Region: 2GW+
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Rest of Australia: ~500MW
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International: 1GW+
FY27 guidance points to more than 50% growth
The FY27 outlook reflects the contracted book beginning to convert. NEXTDC guided FY27 net revenue to a range of A$615m to A$640m (FY26: A$405.0m) and Underlying EBITDA to A$385m to A$410m (FY26: A$248.8m), both representing growth of more than 50%.
Capital expenditure was guided to A$5,250m to A$5,750m (FY26: A$3,397m), including up to A$500m of reimbursable customer fitout.
The primary driver is the 197MW of billing conversion expected in FY27, with operating leverage anticipated to accelerate as the Forward Order Book converts. Guidance excludes fair value movements on investment property and is prepared on a constant currency basis.
“Every MW in the Forward Order Book is a binding customer contract.”
ESG and safety progress alongside growth
Alongside its operational scaling, NEXTDC reported progress across sustainability and safety measures:
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Targeting net zero Scope 1 and 2 emissions by 2050, and published its first Sustainability Report under Australian Sustainability Reporting Standard AASB S2.
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M3 Stages 2 and 4 currently at ~27% lower embodied carbon than the Stage 1 baseline.
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Construction safety of 0.3 LTIFR and 3.5 TRIFR, remaining below industry benchmarks.
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A 31% female workforce and 38% female representation at Board level.
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