ASX Stocks Riding The AI wave
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NEXTDC, Infratil and Macquarie Technology have consistently expanded earnings on the back of strong demand for AI, cloud infrastructure and with big contracts secured these companies are solidifying their positions in this sector.
NEXTDC Limited (ASX: NXT)
showed good growth in FY25 with net revenue going up 14% to A$350.2 million and underlying EBITDA climbing 6% to A$216.7 million. Contracted utilisation jumped 42% to 244.8MW and billing utilisation grew 29% to 110.9MW, this was driven by strong demand from AI and cloud rollouts. The company posted a net loss of A$60.5 million mainly because of higher depreciation and finance costs but its balance sheet stayed strong with A$5.5 billion in liquidity and net debt at A$904 million. It also has a record forward order book of 134MW which supports near term revenue growth with about 85% expected to turn into billings by FY27. Expansion plans include Melbourne upgrades, new hyperscale campuses S4 and S7 in Western Sydney through a proposed JV and also overseas projects in Tokyo and Kuala Lumpur. For FY26 the company is guiding revenue of A$390-400 million and EBITDA between A$230–240 million.
Infratil Limited (ASX: IFT)
reported proportionate operational EBITDAF of NZ$986 million for FY25, an increase of 8.6% and almost touching the top end of guidance. The growth mainly came from CDC Data Centres, One NZ and its healthcare investments. CDC was the highlight with EBITDAF jumping 22% to A$330 million and signing more than 230MW of new contracts, which is its biggest till date, all supported by strong demand from AI and cloud. The total portfolio value went up 29% to NZ$18.3 billion while CDC alone is now valued at A$17.3 billion. Infratil also declared total dividends of 20.5 cents per share which is 2.5% higher and it has a dividend reinvestment plan. Looking ahead for FY26 the company has given guidance of EBITDAF between NZ$1.0–1.05 billion backed by more growth from CDC and its renewable energy platforms.
Macquarie Technology Group (ASX: MAQ)
kept its growth run going in FY25. Revenue went up 1.7% to A$369.6 million and EBITDA increased 4.1% to A$113.6 million which makes it 11 years in a row of EBITDA growth. NPAT was higher by 5.7% at A$34.9 million and EPS reached 135.2 cents per share. Data centres stayed the biggest driver with revenue jumping 14.1% to A$79.9 million and EBITDA hitting A$36.6 million backed by strong demand from government. Cash conversion was solid at 115% with cash reserves of A$62.4 million and a completely unused A$450 million debt facility giving it good space for further expansion. Growth capex stood at A$111 million most of which was put into the IC3 SuperWest project that is on track and on budget with first 6MW expected to be done by September 2026. The group also secured a new 150MW+ Sydney campus setting it up for long term growth.
(Source: Company Announcements)
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