NEXTDC cuts FY27 revenue guidance on Melbourne delays

Full story: https://grafa.com/en/news/australia/nextdc-cuts-fy27-revenue-guidance-on-melbourne-delays

• NEXTDC lowered its FY27 net revenue guidance to $475–$500 million due to electricity supply delays at its M3 Melbourne data centre.

• Revised FY27 underlying EBITDA fell to $245-$265 million, while capital expenditure guidance was cut by $750 million.

• Electricity network operator Jemena suspended grid upgrade works at M3 following opposition from local community stakeholders.

NEXTDC (ASX:NXT) reduced its FY27 net revenue forecast to $475–$500 million after electricity connection delays halted expansion plans at its M3 Melbourne data facility.

The revised figure compares with prior full-year net revenue guidance of $615–$640 million issued by the company in August.

Network provider Jemena Electricity Networks (Vic) suspended parts of its power works following community and stakeholder opposition.

NEXTDC CEO and Managing Director, Craig Scroggie, said, “Jemena has attributed the suspension to community and stakeholder opposition to the works and to the absence of local council consent pending further consultation. On Jemena’s current indicative estimate, we expect that increase during FY28.”

The company reduced its FY27 capital expenditure guidance from $4.50 billion to $5 billion, and conformed total liquidity stood at $8.68 billion as of Sept. 30.

NEXTDC stated that the next grid supply increase for M3 is expected in FY28, deferring billing on affected customer contracts.

Following the announcement, the NEXTDC share price was unchanged at $9.18 after entering a trading halt.

The group stated that it remains in full compliance with all financial debt covenants, with its earliest scheduled debt maturity falling in December 2029.