Macquarie Technology Group (MAQ) H2 2025 earnings summary

Executive summary

• Achieved eleven consecutive years of EBITDA growth, with a 3-year EBITDA CAGR of 8.7% and FY25 results in line with guidance.

• 97% of revenue is from contracted monthly recurring revenue, supporting stable cash flows.

• Continued execution of digital infrastructure strategy, supporting cloud and AI growth in Australia.

• Maintained strong EBITDA margins despite increased cost pressures.

• Major investments in data centre expansion, including IC3 SuperWest and a new Sydney campus.

Financial highlights

• FY25 revenue was $369.6m, up 1.7% year-over-year; EBITDA reached $113.6m, up 4.1%.

• NPAT was $34.9m, up 5.7% from FY24; EPS was 135.2 cents.

• Operating cash flow was $109.9m after income tax payments for FY24 and FY25; EBITDA to cash conversion at 115%.

• Strong balance sheet with $62m in cash and deposits, and an undrawn $450m debt facility.

• FY25 EBITDA per MW sold for MDC was ~$1.8m.

Outlook and guidance

• Marginal EBITDA growth expected in FY26, with continued investment in people and AI capabilities.

• IC3 SuperWest Phase 1 (6MW) on track for completion by September 2026; total capex for FY26 expected between $206m and $234m, with $170–$190m allocated to IC3 SuperWest.

• New Sydney data centre campus planned, targeting over 150MW IT load in three stages.

• Cloud Services & Government revenue to grow in FY26, but margins to decline due to product investments and cost pressures.

• Telecom EBITDA expected to return to FY23 levels or ~$20m in FY26, with margins in the high teens.