DXN (DXN) H2 2026 earnings summary

Executive summary

• Entered FY27 with a record backlog of $40.9m as of August 30, 2026, driven by strong demand in AI infrastructure and modular data centres.

• Secured maiden and second AI HPC contracts, validating the modular platform and opening a pathway to a potential $200m+ follow-on opportunity.

• Expanded manufacturing footprint with a new facility in Johor, Malaysia, and proposed East Coast Australian facility, both targeting Q2 FY27 production.

• Completed a $7.0m capital raise in June 2026 to fund capacity expansion.

• Divested non-core Hobart data centre, resulting in a $0.55m loss from discontinued operations.

Financial highlights

• FY26 revenue declined 33% year-over-year to $10.1m due to customer project deferrals in 1H FY26, with partial recovery in 2H FY26.

• Gross profit fell to $1.8m, a 63% decrease from FY25, with margin pressure from underutilized capacity and elevated project costs.

• EBITDA from continuing operations was $(4.4)m; underlying EBITDA was $(3.7)m, excluding restructuring and non-cash items.

• Cash and cash equivalents increased to $11.0m, supported by the capital raise.

• Net assets improved to $5.4m, up from $4.9m in FY25.

Outlook and guidance

• Entering FY27 with a strengthened balance sheet and a strong backlog, with 45% of backlog expected to convert to revenue in 1H FY27.

• Near-term focus on successful delivery of the AI HPC pilot, a key catalyst for a potential US$200m+ follow-on opportunity.

• Malaysian and East Coast Australian facilities expected online in Q2 FY27 to support growth and increase monthly production capacity.

• Pipeline includes 99 projects as of July 2026, with about 21% related to AI infrastructure.