Highlights

  • FY27 net revenue guidance revised to A$475m to A$500m from A$615m to A$640m.
  • Underlying EBITDA guidance revised to A$245m to A$265m from A$385m to A$410m.
  • Jemena has suspended grid supply works for M3 Melbourne and does not expect to restart before February 2027.
  • New development projects and land acquisitions are paused, with capital recycling under evaluation.

NEXTDC (ASX:NXT) describes itself as an ASX 100-listed technology company and a Data Centre-as-a-Service provider. In an announcement on 21 October 2026, the company revised its FY27 guidance after network works needed to increase grid power to its M3 Melbourne data centre were suspended by the network operator, Jemena.

What changed in the guidance

According to the announcement, the revised figures exclude the affected M3 Melbourne contracts. Net revenue guidance is now A$475m to A$500m, down from A$615m to A$640m. Underlying EBITDA guidance is A$245m to A$265m, down from A$385m to A$410m.

The company stated that the 27 August guidance had included about A$140m of each of net revenue and Underlying EBITDA from those contracts. The revised guidance excludes the affected contracts, including any potential service level credits.

Jemena works and the timing of supply

NEXTDC said Jemena has suspended parts of the network works required for the next increase in grid supply to M3 Melbourne, citing community and stakeholder opposition and the absence of local council consent. Jemena does not expect to recommence the works before February 2027.

The ASX:NXT announcement indicated that the company expects the next grid supply increase during FY28, with billing of the dependent capacity shortly after. Later increases rely on Brooklyn Terminal Station transformer projects, now expected to finish later than previously planned.

The planning decision on M3 Stages 6 and 7 is also expected in 2027, after the Victorian State election on 28 November 2026.

Capital spending and development pause

FY27 capital expenditure guidance was revised to A$4,500m to A$5,000m from A$5,250m to A$5,750m. The company said the revised range includes about A$500m of reimbursable customer fitout and about A$230m of capitalised interest. These items were excluded from the previous guidance range.

NEXTDC stated that all new development projects and land acquisitions are paused for the foreseeable future. The ASX:NXT spending plan is limited to new contracted customer capacity expected to be delivered in the next 12 to 18 months, or to near-complete works. The Board will evaluate capital recycling, including the potential sale of selected development sites not required in the near term, and ASX:NXT will announce the outcome of its capex review by its AGM on 20 November 2026.

Liquidity and covenants

Liquidity at 30 September 2026 was A$8,675m, made up of A$1,275m of cash and A$7,400m of undrawn senior debt facilities and Hybrid Securities. The company said it was compliant with covenants at 30 June 2026 and expects compliance at 31 December 2026. It also cautioned that its ability to draw the full A$6,700m of undrawn senior debt may be adversely affected if billing profiles change materially.

Key Insights

The announcement confirms revised FY27 guidance, a Jemena suspension that is not expected to end before February 2027, and a pause on new development. These are company statements of current circumstances.

Several matters remain expectations rather than outcomes: the FY28 grid supply increase, the 2027 planning decision and the result of the capex review. The company has also flagged that changes to billing profiles could affect debt drawdown. The timing of each item depends on third parties, including Jemena and planning authorities, which adds uncertainty to ASX:NXT's schedule.