Highlights:

• Proportionate operational EBITDAF rose by 11% year-on-year to NZ$989 million in FY26, driven by solid growth across Infratil’s data centre and renewable energy investments.
• Capital expenditure rose 17% to NZ$2.7 billion, while total asset value expanded 13% to NZ$20.6 billion.
• FY27 earnings guidance of NZ$1.3 billion to NZ$1.4 billion points to further growth as major portfolio investments continue to scale.

Strong FY26 Result Marks a Turning Point

Infratil Limited (ASX: IFT) delivered a strong financial performance for the year ended 31 March 2026, with its annual results released on 26 May 2026. The infrastructure investor generated proportionate operational EBITDAF of NZ$989 million in FY26, representing an 11% increase from NZ$895 million in FY25. The company also recorded a net parent surplus of NZ$550 million, reversing the NZ$295 million loss reported previously. Meanwhile, its total asset value grew 13% to NZ$20.6 billion, reflecting continued investment and expansion across its portfolio.

Data Centre Demand Powers Growth

Data infrastructure emerged as a major contributor to Infratil's FY26 momentum. Its Australasian data centre business, CDC, benefited from increasing demand for large-scale digital infrastructure, particularly as artificial intelligence applications drive greater computing requirements.In early May, CDC entered into a landmark data centre agreement in Australasia, strengthening its contracted development pipeline. The business has now secured more than 1GW of contracted capacity and is forecasting EBITDAF growth of over 150%, with earnings expected to surpass AU$1 billion by FY28.In the United Kingdom, Kao Data also expanded its position by securing a 10-year, 22MW neocloud agreement and acquiring an additional site in West London.

Longroad Expands Renewable Energy Platform

Infratil's US renewable energy business, Longroad Energy, recorded particularly strong growth, with EBITDAF rising 170% to US$121 million. The platform had a record 2GW of solar and battery projects under construction, alongside 3.5GW already operating. Infratil committed an additional US$300 million to support Longroad's expansion, with the business targeting US$1 billion in run-rate EBITDAF by CY29/30.

Portfolio Strength and Capital Recycling

Other businesses also contributed to the result. One NZ more than doubled its distributions to NZ$180 million, while Qscan delivered 12% growth. Wellington Airport increased EBITDAF by 2% despite airline fleet constraints. The company also continued recycling capital, selling a NZ$495 million stake in Contact Energy and identifying potential future divestments exceeding NZ$1 billion.

Outlook and Dividend

For FY27, Infratil expects proportionate operational EBITDAF of between NZ$1.3 billion and NZ$1.4 billion, supported by continued investment. Capital expenditure is forecast at NZ$3.8 billion to NZ$4.4 billion. The company declared a final dividend of 13.65 cents per share, taking the FY26 total to 20.9 cents per share, with payment scheduled for 29 June 2026.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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