NextDC Slashes FY27 Guidance, Pauses New Data Center Builds; Shares Plunge 44%
NXDCF sits 31% above its 52-week low of $5.081 on light trading volume (0.1× avg).
Summary
NextDC cut FY27 net revenue guidance to A$475M-A$500M from A$615M-A$640M and underlying EBITDA to A$245M-A$265M from A$385M-A$410M, a roughly 35% reduction at the midpoint of both ranges. The cause is a delay in electricity network upgrades at its M3 Melbourne data center, which pushes the next power supply increase into FY28 and defers revenue from already-contracted customer capacity. Management also paused new development projects and land acquisitions and trimmed FY27 capex to A$4.5B-A$5B from A$5.25B-A$5.75B. Shares fell as much as 44% on the news, a severe repricing for a company whose growth case rests on capacity coming online on schedule. The power constraint at its flagship Melbourne site is the key issue: it hits contracted revenue, not speculative demand, and the pause on new builds raises questions about the pace of the expansion pipeline.
At the time of this announcement, NXDCF was trading at $6.63 on OTC in the Technology sector, with a market capitalization of approximately $5B. The 52-week trading range was $5.08 to $12.29. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Seeking Alpha.