NXT –2.55%: Released a weaker than expected 1H25 result from an immediate earnings perspective alongside promising forward-looking figures and a solid incentives plan for the CEO.
- Underlying Ebitda $105.4 million, +3.3% y/y, estimate $102.5 million
- Net loss $42.7 million, +98% y/y, estimate loss $15.5 million
- Contracted utilization increased 18% to 176 megawatts (MW) in 1H, consensus expectation was 185.6 MW
NXT’s forward order book currently sits at 83MW and gives us a glimpse into the revenue pipeline beyond FY25 which looks positive. Sentiment toward data-centres has been weak since the release of DeepSeek and NXT has not been the only stock affected; we believe this to be short-term noise.
It’s reassuring that management reaffirmed earnings (Ebitda) guidance in the range of $210m-$220m, with analyst estimates at $213.7m, though we note this adds elevated risk to the full-year result. With continued operational momentum and a long-term growth incentive plan now in place, NEXTDC remains positioned to capitalize on the medium and long-term data center/AI thematic.
MM remains long and bullish NXT
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