Macquarie Technology Group (ASX:MAQ): FY26 Earnings, Data Centre Expansion and FY27 Investment

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Macquarie Technology Group (ASX:MAQ): FY26 Earnings, Data Centre Expansion and FY27 Investment

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Highlights

Macquarie Technology Group (ASX:MAQ) recorded FY26 EBITDA of AUD 115.9 million, up 2.0%.
Operating cash flow reached AUD 94.6 million, while 95% of revenue was contracted and recurring.
A Macquarie Park site acquired in August 2026 underpins a proposed approximately 200MW campus.
The company projected FY27 capital expenditure of AUD 485 million to AUD 506 million.

Macquarie Technology Group (ASX:MAQ) provides data centre, cloud, cybersecurity and telecommunications services to Australian business and government customers. Its FY26 report, released in August 2026, recorded higher revenue and EBITDA while outlining a substantial expansion of its Sydney data centre footprint. The developments place project delivery, financing requirements and the timing of new capacity at the centre of the company’s next reporting period.

Company Business

Macquarie Technology Group (ASX:MAQ) operates through Cloud Services and Government, Data Centres, and Telecom. Its services span managed and secure cloud infrastructure, cybersecurity, colocation, network connectivity, data services and voice products. The customer base includes corporate organisations and government agencies, with data centre assets situated in Sydney and Canberra.

The segments have different operating economics. Data centres require substantial initial expenditure on buildings, power infrastructure and fit-out before contracted capacity can produce revenue. Cloud and government services are tied to managed technology contracts and security requirements. Telecom supplies connectivity services and can also support relationships across the other divisions.

The company reported that 95% of FY26 revenue came from contracted monthly recurring arrangements. This measure describes its revenue mix, but contract terms and customer concentration remain relevant when assessing how receipts develop over time.

Recent Development

In August 2026, Macquarie Technology Group (ASX:MAQ) confirmed completion of a roughly 34,200-square-metre property acquisition in Macquarie Park for AUD 240 million before associated costs. The site is intended for the proposed Macquarie Engineering & Technology Campus, including a data centre campus of approximately 200MW. Development remains contingent on planning, power, customer requirements and funding approvals.

The company also progressed IC3 SuperWest. Its August announcement anticipated delivery of the initial 6MW phase in September 2026 and a further 13MW phase by June 2027. Those were forward schedules at the reporting date rather than independently confirmed completion milestones. Negotiations with an anchor customer were described as advanced.

Financing arrangements also changed during FY26. A AUD 200 million investment through the National Reconstruction Fund Corporation was structured as perpetual, subordinated, unsecured and non-convertible hybrid securities in two AUD 100 million series. The first was issued in June 2026, with a later issue scheduled subject to the announced terms.

Financial Performance and Sector Context

For the year ended 30 June 2026, Macquarie Technology Group (ASX:MAQ) recorded consolidated revenue of AUD 390.0 million, compared with AUD 369.6 million in FY25, a rise of 5.5%. EBITDA reached AUD 115.9 million from AUD 113.6 million, an increase of 2.0%. Profit attributable to shareholders fell to AUD 32.1 million from AUD 34.9 million.

Segment revenue before eliminations was AUD 235.6 million for Cloud Services and Government, AUD 87.0 million for Data Centres and AUD 105.2 million for Telecom. Segment EBITDA was AUD 55.9 million, AUD 40.0 million and AUD 20.0 million, respectively. The contrasting segment results show how growth in infrastructure and managed services operated alongside lower Telecom earnings.

Operating cash flow was AUD 94.6 million in FY26. Capital expenditure reached AUD 230.5 million, including AUD 193.3 million of growth expenditure, of which AUD 186.2 million related to IC3 SuperWest. The capital-intensive development model makes depreciation, financing costs, contracted utilisation and the commencement of new data centre revenue important to reported profitability.

Risks to Consider

Macquarie Technology Group (ASX:MAQ) faces construction cost, timetable, electricity access and approvals risks associated with major data centre projects. Substantial investment can precede the start of contracted revenue, creating a gap between expenditure and cash receipts. Changes in financing costs or development scope could affect returns on those assets.

The company also faces operating risks from customer concentration, cybersecurity obligations and competitive service pricing. In Telecom, management projected an FY27 EBITDA decline of AUD 2 million to AUD 3 million, citing pricing changes and the continuing reduction in traditional voice activity.

What to Watch Next

Macquarie Technology Group (ASX:MAQ) guided to modest FY27 EBITDA growth, assuming revenue from IC3 SuperWest Phase 1 starts in the second half of the financial year. Its August guidance estimated group FY27 capital expenditure at AUD 485 million to AUD 506 million. The pace of build-out, contracting and financing will influence how the investment program develops.

Future releases may clarify the status of IC3 SuperWest’s phased commissioning, anchor-customer commitments and the proposed Macquarie Park campus. The company estimated annual holding costs for the new site of AUD 1 million to AUD 2 million, excluding finance costs. Progress on approvals and development staging will therefore be relevant before additional construction is undertaken.

Key Insights

FY26 combined higher revenue and EBITDA with lower statutory profit and a significant increase in infrastructure investment. Macquarie Technology Group (ASX:MAQ) has outlined large planned development expenditure, supported by debt facilities and hybrid funding. The next key measures are contracted capacity, project milestones, cash generation and the eventual conversion of completed data centre space into revenue.

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