Macquarie Technology Group Ltd (ASX:MAQ), an Australian data centre, cloud, cyber security and telecom company, has seen its share price decline over the past year, while reporting a twelfth consecutive year of EBITDA growth. Macquarie Technology Group Ltd (ASX:MAQ) shares were priced at $52.41, down 2.78% in today’s session, and are down 22.45% over the past year. The company released results for the year ended 30 June 2026 (FY26) on 26 August 2026, which it states were in line with guidance.

For context, the S&P/ASX 200 Info Tech [XIJ] (INDEXASX: XIJ) stood at 1,684.00, down 2.90% (−50.30 points) today as of 6 Oct, and is down 42.73% over the past year. Meanwhile, the S&P/ASX 200 stood at 8,735.70, up 0.57% (+49.30 points) today, and is down 2.74% over the past year.

Business Model and Operational Footprint

Macquarie Technology serves mid to large Business and government customers through data centres, cloud services, cyber security and telecom networks. Its Macquarie Data Centres (MDC) business is focused on Sydney, where 265MW of an estimated total capacity of about 268MW is in the Tier 1 Northern Zone. Macquarie Government provides secure cloud and cyber services, including Essential 8 security products.

Revenue is largely recurring, with 95% coming from contracted monthly recurring revenue. The company’s operating segments are Cloud Services and Government (CS&G) and Telecom, with Telecom serving as a channel for CS&G services. Its data centre development includes IC3 SuperWest and a proposed Macquarie Engineering & Technology Campus (METC) in Macquarie Park.

Sector Dynamics

Data centre capacity in Sydney is shaped by power availability, land acquisition, customer Demand for cloud and AI workloads, and the need for secure, sovereign infrastructure. The company states that customers are requesting larger capacity and faster lead times, and that AI raises cost and security challenges comparable to those in public cloud.

Telecom services face industry pressures, including declining traditional voice and reductions in NBN pricing that are passed to customers. Macquarie’s 22.45% one-year decline compares with a 42.73% decline for the S&P/ASX 200 Info Tech index, and with NEXTDC Ltd (ASX:NXT), down 37.83%, and Megaport Ltd (ASX:MP1), up 38.02%. Today Macquarie shares are down 2.78% at $52.41.

FY26 Results Release

Group EBITDA was $115.9 million, up 2.0% from $113.6 million. Operating Cash Flow was $94.6 million, a cash conversion of 108%. Capital Expenditure was $230.5 million, including growth capex of $193.3 million, of which $186.2 million related to IC3 SuperWest. The company notes that data centre Investment increases financing and Depreciation costs, which affects earnings per share.

The Australian Government invested $200 million through the National Reconstruction Fund Corporation in perpetual, callable, subordinated, unsecured, non-convertible securities, drawn in two series of $100 million (first issued on 1 June 2026, second by 1 March 2027). Undrawn Debt facilities were $496.5 million, with a further $100 million of Hybrid Securities Series 2 available, and cash was $4.9 million.

On 6 August 2026, MDC completed the Acquisition of a roughly 34,200 square metre site in Macquarie Park for $240 million, underpinning a proposed 200MW campus. IC3 SuperWest Phase 1 (6MW) is expected to be completed by September 2026, with Phase 2 (13MW) expedited to June 2027. Negotiations with an anchor customer are described as well progressed.

For FY27, EBITDA is expected to show modest growth, assuming Phase 1 Revenue begins in the second half. Telecom EBITDA is expected to fall by $2 million to $3 million. Total group capex is expected to be $485 million to $506 million, and depreciation and Amortisation $63 million to $67 million.

Growth Catalysts and Critical Operating Risks

Growth catalysts include IC3 SuperWest demand from multiple customers, development of the METC site, expanded cyber security and AI-ready infrastructure, and the Diversification of capital through the NRFC investment. Initial METC construction is estimated to be completed in late calendar 2029, subject to approvals.

Operating risks include a large capital programme, with cash of $4.9 million at 30 June 2026 and funding reliant on undrawn debt facilities and hybrid securities, Holding Costs of $1 million to $2 million a year on the METC site, planning and power approvals, and timing of anchor customer contracts. EBITDA growth of 2.0% was modest, FY27 growth is guided as modest, and Telecom earnings are expected to decline. Higher depreciation and financing costs reduce earnings per share, and the company is considering project finance and new infrastructure investors to fund future data centres.

Where Things Stand

Macquarie Technology reports a twelfth consecutive year of EBITDA growth, a new government-backed funding source and a larger development pipeline, while its shares remain lower over twelve months. Near-term milestones include IC3 SuperWest Phase 1 completion in September 2026 and the outcome of anchor customer negotiations.