NEXTDC Surges Past FY25 Targets with Record Sales and $5.5B Liquidity Boost
NEXTDC has delivered record FY25 financial results, surpassing revenue and EBITDA guidance while aggressively expanding its data centre footprint across Australia and Asia-Pacific. The company’s strengthened liquidity and strategic investments position it to capitalise on soaring AI and cloud demand.
- FY25 net revenue of A$350.2 million, exceeding guidance
- Record contracted sales of 72.2MW and forward order book of 134MW
- Capital expenditure hits A$1.7 billion, supporting major expansions
- New A$3.5 billion debt facility increases liquidity to A$5.5 billion
- Plans joint venture for Sydney data centres and Tokyo international expansion
Robust Financial Performance
NEXTDC Limited has reported a standout financial year for FY25, with total revenue climbing 6% to A$427.2 million and net revenue reaching A$350.2 million, comfortably above its guidance range. Underlying EBITDA also rose 6% to A$216.7 million, reflecting operational efficiency amid rapid growth. These results underscore NEXTDC’s ability to convert strong demand into solid financial outcomes.
Record Contracting and Capacity Expansion
The company achieved a record 72.2MW of new contracted sales during FY25, including a landmark 10MW hyperscale order at its KL1 Kuala Lumpur facility. Its forward order book now stands at 134MW, exceeding current billing utilisation by 21%, signalling robust future revenue streams. Capital expenditure surged to a record A$1.7 billion, funding the commissioning of 42.7MW of new capacity and advancing over 121MW of capacity under development across Australia and internationally.
Strategic International and Domestic Growth
NEXTDC is expanding its footprint with new data centres in key markets. Notably, it secured a site in Tokyo (TK1) in partnership with CBRE I.M., targeting completion by FY30, marking a significant step into the Asian market. Domestically, upgrades and expansions at Sydney and Melbourne sites are underway, including increased capacities at S5 Sydney and M3/M4 Melbourne. The company also opened new facilities in Darwin and Adelaide, and is progressing developments aligned with major initiatives like Google’s Australia Connect subsea cable project.
Financial Strength and Capital Strategy
In August 2025, NEXTDC secured a substantial A$3.5 billion increase in its senior debt facilities, boosting pro forma liquidity to A$5.5 billion. This refinancing improved borrowing costs and extended loan maturities, providing a strong financial foundation for ongoing expansion. The company’s leverage profile has improved, with only two financial covenants now applicable, reflecting its enhanced credit standing. NEXTDC is also exploring a joint venture to develop and operate its S4 and S7 Sydney data centres, aiming to unlock private equity capital and optimize capital structure while retaining operational control.
Outlook and Market Positioning
Looking ahead to FY26, NEXTDC projects net revenue between A$390 million and A$400 million and underlying EBITDA of A$230 million to A$240 million, driven by the conversion of its forward order book and continued demand from AI, cloud, and hyperscale customers. Capital expenditure is expected to rise further to between A$1.8 billion and A$2 billion, supporting accelerated capacity expansions. CEO Craig Scroggie emphasised NEXTDC’s role as a critical enabler of the digital economy, positioning the company at the forefront of the data centre boom fueled by the fourth industrial revolution.
Bottom Line?
NEXTDC’s record FY25 performance and strategic investments set the stage for accelerated growth amid rising digital infrastructure demand across Asia-Pacific.
Questions in the middle?
- How will the proposed joint venture for Sydney data centres impact NEXTDC’s capital structure and control?
- What are the risks and timelines associated with the international expansion into Tokyo and Kuala Lumpur?
- How will rising AI and cloud demand influence NEXTDC’s pricing power and margin expansion in FY26 and beyond?
