NEXTDC Cuts FY27 Guidance on M3 Melbourne Power Delay

NEXTDC (ASX:NXT) has cut its FY27 guidance after Jemena suspended parts of the electricity network works needed to lift grid supply to its M3 Melbourne data centre, deferring delivery and billing of contracted capacity.

Jemena has told NEXTDC it does not expect to recommence the works before February 2027, and NEXTDC now expects the next increase in grid supply during FY28. Revised FY27 guidance, which excludes the affected M3 contracts, is net revenue of A$475 million to A$500 million, down from A$615 million to A$640 million, and Underlying EBITDA of A$245 million to A$265 million, down from A$385 million to A$410 million. The August guidance included approximately A$140 million of each from those contracts. Capital expenditure guidance falls to A$4,500 million to A$5,000 million from A$5,250 million to A$5,750 million, and now includes approximately A$230 million of capitalised interest. All new development projects and land acquisitions are on hold. Liquidity was A$8,675 million at 30 September 2026, and the company remains in compliance with its financial covenants.

NEXTDC cannot yet reliably estimate the contracts' FY27 contribution. Service level credits could reduce Underlying EBITDA below the revised range, the contracts give the customer termination rights in some circumstances, and the investment property fair value effect is not quantified.