Shares in data centre boomer, NextDC (ASX:NXT), slipped yesterday after the company produced a mixed result that left some investors perplexed.
The shares were down more than 4% near the close after the company reported a statutory loss after tax of $44.1 million, up from its $25.6 million loss from last year.
However, the Brisbane-based company saw underlying EBITDA rise 5.5% year on year to $204.3 million, exceeding its full-year guidance of $190 million to $200 million.
Revenue grew 11.6% to $404.3 million, meeting its guidance range of $400 million to $415 million.
NextDC guided net revenue of between $340 million and $350 million for FY25. It expects underlying EBITDA in the range of $210 million to $220 million, falling short of early market forecasts of $230.1 million.
Capital expenditure is expected to be between $900 million and $1.1 billion, roughly in line with the market's expectations of around $950 million.
There are no dividends as the company has positioned itself as a U.S.-style tech stock offering growth and capital gains. (The 26% gain so far this year strengthens this argument.)
Capex in the year to June exceeded $1 billion, surpassing its guidance range of $850 to $900 million. This did not concern the market, nor did the increase in 2025's guidance to $900 to $1.1 billion, which aligns with the record pipeline and strong growth in ICT, cloud, and AI demand.
The company said it had $2.7 billion in liquidity at June 30 (in cash of $1.2 billion and $1.5 billion in undrawn debt facilities), giving it the resources to finance another significant year of expansion.
In commentary, NextDC made it clear that it would remain focused on pursuing strategic investments to capitalize on the unprecedented level of customer demand for data centres.
It noted that it would focus on further growth investment in the 2025 financial year with ambitions to build new capacity in line with existing customer orders and expand into new markets.
NextDC CEO Craig Scroggie said, "FY25 will be a landmark year for NextDC as we make strategic investments to expand our platform, positioning us at the forefront of the digital infrastructure boom driven by the fourth industrial revolution."
"As AI and cloud technologies increasingly drive global enterprise, the demand for speed, scalability, and reliability in digital infrastructure will continue to surge," he said.
"NextDC is at a pivotal inflection point, strategically building the foundational systems that will empower hyperscale customers, enterprises, and government agencies to excel in this new era."
