NEXTDC (NXT) Investor update summary

M3 power and planning

• Jemena suspended parts of the 66kV network works in September 2026 amid safety, access and consultation issues; work is not expected to restart before February 2027, with the next grid supply increase expected in FY28.

• Planning approval for M3 Stages 6 and 7 remains pending and is expected after the Victorian election on 28 November 2026, in 2027.

• Power options include additional supply through existing connections, alternative or temporary pole routes and locations, and possible underground sections; undergrounding is not an immediate solution.

• M3 hall construction and handovers continue; a revised power ramp is being discussed with the customer, with available power managed to support deployment.

• Affected capacity remains contracted subject to customer rights; service-level credits or termination may apply in some circumstances, while force majeure relief is assessed. Later Brooklyn Terminal Station works defer some capacity expected to bill after FY28.

FY27 trading guidance

• Net revenue guidance is A$475m–A$500m, down from A$615m–A$640m, excluding affected M3 contracts, including capacity already billing and potential service-level credits.

• Underlying EBITDA guidance is A$245m–A$265m, down from A$385m–A$410m; August guidance included ~A$140m each of net revenue and Underlying EBITDA from affected M3 contracts.

• FY27 actuals will include affected M3 contributions; service-level credits could take Underlying EBITDA below revised guidance, with outcomes dependent on an agreed power ramp and delivery program.

• The rest of the business is tracking in line with August forecasts, and the Sydney S4 250MW delivery program remains on track.

• M3 completion timing and costs may affect investment property fair value, to be reflected in results for the half year ending 31 December 2026.

Capital expenditure and investment priorities

• FY27 CapEx guidance is A$4.5bn–A$5.0bn, down from A$5.25bn–A$5.75bn; revised guidance includes ~A$230m capitalised interest and A$500m reimbursable customer fitout.

• The reduction is A$750m, or 13%–14%; excluding capitalised interest, CapEx is ~A$4.27bn–A$4.77bn, a like-for-like reduction of ~A$980m, or 17%–19%.

• Non-contracted projects and further land acquisitions are paused; spending is prioritised for contracted capacity due within 12–18 months and advanced development works, pending a CapEx review due 20 November 2026.

• No equity raise is planned; options include further CapEx savings, land sales and the S4 JV. The forward order book is estimated to require ~A$7bn total CapEx to deliver.

• S4 JV discussions continue; a completed, stabilised asset and customer commitments for the remaining 115MW could support better pricing, while the first 250MW is also under consideration for capital recycling.