Key Highlights

  • Macquarie Technology reported FY26 EBITDA of $115.9 million, up 2.0%, and operating cash flow of $94.6 million.
  • The company completed a $240 million purchase of a Macquarie Park site for a proposed 200MW campus on 6 August 2026.
  • The National Reconstruction Fund Corporation is investing $200 million in perpetual securities, drawn in two series of $100 million.

Macquarie Technology Group Ltd (ASX:MAQ) shares were priced at $45.99 during the trading session on 19 October 2026, down 0.41%. Macquarie Technology provides data centre, cloud, cyber security and telecom services. On 26 August 2026, the company released its results for the year ended 30 June 2026, which it described as in line with guidance, along with updates on its IC3 SuperWest data centre, a new Macquarie Park site and funding from the National Reconstruction Fund Corporation. The price data relates only to the 19 October 2026 session and is separate from the release date.

FY26 financial results

Group EBITDA was $115.9 million, up 2.0% from $113.6 million, which the company described as its twelfth consecutive year of EBITDA growth. Operating cash flow was $94.6 million, a cash conversion of 108%, and 95% of revenue came from contracted monthly recurring revenue.

Capital expenditure was $230.5 million, made up of growth capital expenditure of $193.3 million (including $186.2 million for IC3 SuperWest), customer growth capital expenditure of $21.6 million and maintenance capital expenditure of $15.6 million. The company said investment in data centres increased financing and depreciation costs, which affects earnings per share.

Funding and the National Reconstruction Fund Corporation

The Australian Government invested $200 million into the company through the National Reconstruction Fund Corporation. The securities are perpetual, callable, subordinated, unsecured and non-convertible, and are being drawn in two series of $100 million, with the first issued on 1 June 2026 and the second due by 1 March 2027.

The company reported an undrawn debt facility of $496.5 million and a $100 million Hybrid Securities Series 2 available to fund further investment.

IC3 SuperWest and the Macquarie Park campus

IC3 SuperWest Phase 1 (6MW) is expected to be completed by September 2026, on time and on budget. Phase 2 (13MW) has been expedited and is expected by June 2027. The company states that the facility has attracted demand from multiple customers and that negotiations with an anchor customer are well progressed.

On 6 August 2026, the company's data centre business completed the purchase of a site of about 34,200 square metres in Macquarie Park for $240 million. The site is intended to support a proposed engineering and technology campus of about 200MW, subject to planning and other approvals. The company estimates total capacity of about 268MW, of which 265MW is in Sydney's Tier 1 Northern Zone. Holding costs for the site are about $1 million to $2 million per year, excluding financing costs.

Sector backdrop

Data centre operators in Australia are expanding capacity to meet demand from cloud, AI and cyber security customers, and the release notes that customers are asking for larger capacity and faster lead times. Developments in this area typically require long lead times for land, power approvals and construction, and operators report capacity in megawatts alongside financial results. Sovereign and government-related investment, such as that from the National Reconstruction Fund Corporation, is one source of capital that sits alongside bank debt and hybrid securities.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

  • EBITDA grew 2.0%, and the company says higher financing and depreciation costs from data centre investment affect earnings per share.
  • The proposed Macquarie Park campus remains subject to planning and other approvals, and designs may change with customer requirements, power approvals, construction staging and funding.
  • FY27 EBITDA growth is described as modest and assumes IC3 SuperWest Phase 1 revenue begins in the second half of FY27.
  • The company's anchor customer negotiations for IC3 SuperWest are described as well progressed but are not concluded.
  • Telecom EBITDA is expected to reduce by $2 million to $3 million in FY27, and traditional voice continues to decline in line with the industry.

What's next

IC3 SuperWest Phase 1 is expected to complete by September 2026 and Phase 2 by June 2027. The second series of NRFC securities is due by 1 March 2027. For FY27, the company expects modest EBITDA growth, modest growth in Cloud Services and Government revenue, depreciation and amortisation of $63 million to $67 million, Group capital expenditure of $485 million to $506 million and continued investment in AI-ready infrastructure. It also states that it is strengthening capabilities to support development of the Macquarie Engineering & Technology Campus.