Macquarie Technology Group (MAQ) H1 2025 earnings summary

Executive summary

• Achieved 20 consecutive halves of EBITDA growth, with 1H FY25 EBITDA up 6% year-over-year to $56.2m, driven by cloud, cyber, and AI megatrends.

• Net profit after tax for 1H FY25 rose 21% to $17.9m, with EPS up 14% to 69.6c per share.

• Revenue increased 1% year-over-year to $183.6m, with over 97% from contracted monthly recurring revenue.

• Maintained strong EBITDA margins and balance sheet, with $91m in cash/deposits and $450m undrawn debt facility.

• Construction of IC3 SuperWest data centre progressing on schedule, with Phase 1 completion expected Q3 2026.

Financial highlights

• Revenue: $183.6m (+1.3% YoY); EBITDA: $56.2m (+6%); EBIT: $28.7m (+21.2%).

• NPAT: $17.9m (+21%); EPS: 69.6c (+14%).

• EBITDA margin at 30.6% in 1H FY25; cash conversion at 105%.

• Revenue CAGR over 3 years: 7.1%; EBITDA CAGR: 11.5%.

• Capital expenditure for 1H FY25 was $58.9m, mainly due to IC3 SuperWest investment.

Outlook and guidance

• FY25 EBITDA expected at $112–$115m, with Data Centres contributing $36–$37m.

• FY25 total capex forecasted at $162–$181m, with $120–$135m for IC3 SuperWest.

• Ongoing investment in data centre capacity, including IC3 SuperWest, with phase 1 completion expected Q3 2026.

• Telecom revenue to decline due to NBN pricing and product mix shift, but EBITDA margins to be maintained.

• Sufficient liquidity for growth: $450m undrawn debt and ~$91m cash/deposits.