NEXTDC Limited (ASX:NXT)

NEXTDC announced revised FY27 guidance after delays to Jemena’s electricity network works pushed the next increase in grid supply to its M3 Melbourne data centre into FY28, deferring delivery and billing of contracted customer capacity and creating uncertainty around the contribution from affected M3 contracts for the financial year ending 30 June 2027. As a result, FY27 net revenue guidance was cut to A$475 million to A$500 million from A$615 million to A$640 million, Underlying EBITDA guidance was reduced to A$245 million to A$265 million from A$385 million to A$410 million, and capital expenditure guidance was lowered to A$4.5 billion to A$5.0 billion from A$5.25 billion to A$5.75 billion, with the revised earnings guidance excluding revenue and attributable EBITDA from the affected M3 contracts, including capacity already billing and any potential service level credits. The company said Jemena suspended parts of the required 66kV augmentation works due to community and stakeholder opposition, safety concerns and lack of local council consent, while the Victorian Government’s planning decision for M3 Stages 6 and 7 is now expected only after the 28 November 2026 state election, likely in 2027, further delaying final-stage M3 capacity. NEXTDC said construction of the data halls continues, the deferred capacity remains under contract subject to customer rights, it is assessing contractual implications including possible service level credits, termination rights and force majeure relief, and it will refocus spending on near-term contracted capacity, pause new development projects and land acquisitions, and consider capital recycling opportunities. Despite the setback, NEXTDC reported A$8.675 billion of liquidity at 30 September 2026, said it remained in compliance with financial covenants, and noted its earliest scheduled debt maturity is December 2029, with a potential Convertible Notes holder put option in September 2029.