NEXTDCs FY25 Results Highlight Strong Growth Amid Heavy Capital Spending

Highlights:

• Revenue rose 6% to $427.2 million, supported by strong demand for data centre services.
• Underlying EBITDA increased 6% to $216.7 million, landing within the company’s guidance.
• NPAT came in at $60.5 million, missing analyst expectations amid elevated capital expenditure of $1.7 billion.

A Decade of Outperformance

NEXTDC Limited (ASX: NXT) has been one of the Australian market’s best performers over the past decade, generating a total return of 585.42% across 10 years and 38.35% over the past five. The company’s growth has been fueled by its role in building and supporting Australia’s digital infrastructure, a sector that continues to expand rapidly with the rise of AI and cloud technologies.

FY25 Performance Snapshot

For the financial year 2025, NEXTDC reported revenue of $427.2 million, a 6% increase, and underlying EBITDA of $216.7 million, also up 6% and within its guidance range. Net profit after tax (NPAT) was recorded at $60.5 million, underperforming analyst estimates. At the same time, capital expenditure surged to $1.7 billion, exceeding prior guidance.

Even with higher spending, the company secured record contracts, including 72.2MW in new sales, and built a forward order book of 134MW—exceeding its existing billing capacity. At the time of writing, NEXTDC shares were trading at $16.45, down 17.08% for the session.

Market Outlook and Growth Drivers

Chief Executive Officer Craig Scroggie emphasized that FY25 not only exceeded net revenue guidance but also set new contracting records, positioning NEXTDC to capture surging demand for cloud and AI capacity across Asia-Pacific. Analysts at Citi project billing utilisation could significantly exceed consensus in FY26 and FY27, suggesting potential EBITDA upgrades of 10% or more.

Looking ahead, NEXTDC has guided to FY26 EBITDA of $230–240 million, with capital expenditure forecast between $1.8 -- 2.0 billion. Investors will be watching how effectively the company converts its growing contracted pipeline into revenue while balancing heavy capital intensity through joint ventures and debt financing.

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