Highlights

  • Macquarie Technology Group (ASX:MAQ) reported FY26 revenue of $390.0m, up 5.5%, and EBITDA of $115.9m, up 2.0%
  • Data Centres segment EBITDA rose 9.3% to $40.0m, while Telecom EBITDA fell 16.7% to $20.0m
  • FY27 group capex guidance of $485–506m includes $254m for the Macquarie Park campus land
  • IC3 SuperWest Phase 1 (6MW) had been scheduled for completion in September 2026, with Phase 2 (13MW) targeted by June 2027

Macquarie Technology Group is an Australian data centre, cloud, cyber security and telecom company serving mid-to-large businesses and government.

Company Business

The group operates through three segments. Cloud Services and Government delivers managed cloud, cyber security and sovereign services to public sector and enterprise clients. Data Centres, operating as Macquarie Data Centres, provides wholesale and colocation infrastructure. Telecom supplies voice, data and mobile services to corporate customers. According to its FY26 results release, around 95% of revenue came from contracted monthly recurring revenue, and the group's data centre footprint covers about 268MW of capacity, of which 265MW sits in Sydney's Tier 1 Northern Zone.

The company has described its current phase as one of significant capital-intensive growth, with the board declaring no interim or final dividend for FY26 while funding is directed towards new data centre capacity.

Recent Development

In early August 2026, Macquarie Technology Group (ASX:MAQ) confirmed completion of its acquisition of a land parcel in Macquarie Park, Sydney. The FY26 results release stated that the roughly 34,200 square metre site was purchased for $240 million and is intended to underpin a proposed campus of around 200MW, known as the Macquarie Engineering and Technology Campus. Initial construction is estimated for late calendar 2029, subject to approvals, with annual holding costs of about $1–2 million excluding financing.

Construction of IC3 SuperWest has continued, with the company describing the project as on track and on budget. Phase 1, providing 6MW, had been scheduled for completion in September 2026, and Phase 2, adding 13MW, is expected by June 2027. Management noted that IC3 SuperWest has attracted demand from multiple customers and that negotiations with an anchor customer were well progressed at the time of the results.

On the funding side, the Australian Government, through the National Reconstruction Fund Corporation, is investing $200 million in perpetual, subordinated, non-convertible securities in two $100 million series. The first series was completed on June 1, 2026, and the second is due by March 1, 2027.

Financial Performance and Sector Context

For the year ended June 30, 2026, ASX:MAQ reported revenue and other revenue of $390.0 million, up 5.5% on the prior year. EBITDA rose 2.0% to $115.9 million, which the company said marked twelve consecutive years of EBITDA growth. The EBITDA margin was 29.7%, compared with 30.7% a year earlier. Net profit after tax attributable to members was $32.1 million, down 7.8%, and basic earnings per share was 124.6 cents. The company noted that its data centre investment adds to financing and depreciation costs, which affects earnings per share.

Segment results were mixed. Cloud Services and Government revenue increased 11.2% to $235.6 million, with segment EBITDA up 5.5% to $55.9 million. Data Centres revenue rose 8.9% to $87.0 million and EBITDA grew 9.3% to $40.0 million. Telecom revenue declined 6.6% to $105.2 million and EBITDA fell 16.7% to $20.0 million.

Operating cash flow was $94.6 million, representing cash conversion of 108%. Total capex for FY26 was $230.5 million, including $186.2 million directed to IC3 SuperWest. At June 30, 2026, the group held $4.9 million in cash and had $496.5 million in undrawn debt facilities, along with $100 million available from the second hybrid securities series.

Demand for data centre capacity in Australia continues to be shaped by cloud adoption, sovereign data requirements and artificial intelligence workloads, which places a focus on power availability and build timelines across the sector.

Risks to Consider

The scale of planned investment is a central consideration. FY27 group capex guidance of $485–506 million is more than double the FY26 figure, and higher financing and depreciation charges may weigh on reported profit while new capacity is being filled. Revenue from IC3 SuperWest depends on securing customer contracts, and the anchor customer negotiations had not been finalised at the time of the results. The Macquarie Park campus remains subject to planning approvals, with construction not expected to begin for several years. The Telecom segment also continues to face declining revenue, with management guiding to a further $2–3 million reduction in Telecom EBITDA in FY27.

What to Watch Next

Investors following Macquarie Technology Group (ASX:MAQ) may look for confirmation that IC3 SuperWest Phase 1 has been completed and for any announcement of an anchor customer agreement. Progress on the second $100 million NRFC series, due by March 2027, and on planning steps for the Macquarie Park campus are also relevant. The company has guided to modest EBITDA growth in FY27, assuming IC3 SuperWest Phase 1 revenue begins in the second half, with D&A expected at $63–67 million. The half-year result for the period to December 2026 will provide the next detailed update.

Key Insights

Macquarie Technology Group delivered modest revenue and EBITDA growth in FY26, supported by its Cloud Services and Government and Data Centres segments, while Telecom contracted. The business is entering a heavy investment phase centred on IC3 SuperWest and the Macquarie Park site, funded through undrawn debt and government-backed hybrid securities. Customer contracting at IC3 SuperWest and execution on capex are likely to shape the group's FY27 performance.