DXN Reports $16M Revenue with $2.3M Loss Amid Strategic Expansion

Robust Revenue Growth Amid Operational Challenges

DXN Limited has delivered a notable 49% increase in revenues for the fiscal year ended 30 June 2025, reaching $16 million, propelled largely by its Modular Division’s strong contract wins and execution. This growth reflects the company’s expanding footprint in the prefabricated modular data centre (PMDC) market, including significant projects such as the East Micronesia Cable System and the Pilbara Ports Project.

However, despite the revenue surge, the company recorded a slight increase in its net loss to $2.31 million, up 0.5% from the prior year. Gross profit declined by 7.9%, impacted by cost variations on key projects and the expiration of an exclusive distribution agreement, which the company views as an opportunity to reset its international strategy with greater flexibility.

Strategic Expansion and New Business Models

FY25 marked the establishment of DXN’s Data Centre as a Service (DCaaS) division, a capital-light model offering design, engineering, and deployment of data centres and ground stations. The division secured its inaugural contract valued at approximately $3.6 million over five years with a US-based global satellite earth station provider, signaling the company’s move toward recurring revenue streams and smoother revenue profiles.

Further strengthening its infrastructure base, DXN acquired the Secure Data Centre (SDC) Darwin property for $2.1 million, independently valued at $10 million, enhancing long-term scalability and delivering an immediate uplift in net assets. The company also completed a successful exit from its Sydney data centre lease, contributing to ongoing cost savings.

Financial Performance and Operational Efficiency

EBITDA for the year dropped sharply to $5,769 from $643,944 in FY24, while underlying EBITDA, which adjusts for non-operating and non-cash items, stood at $814,526. This reflects transitional challenges as DXN invests in new divisions and navigates project cost pressures. The company reported cash reserves of $3.1 million at year-end and improved net tangible assets per share to 0.67 cents, signaling a strengthened balance sheet.

Cost reduction initiatives and supply chain enhancements were realised during the year, particularly within the Modular Division, which also secured $12 million in new contracts in the final quarter of FY25. These wins span mission-critical infrastructure, AI, hyperscale markets, and logistics, underscoring DXN’s reputation for rapid deployment and quality in demanding environments.

Outlook and Growth Prospects

Looking ahead to FY26, DXN is positioned for profitable growth supported by a $12 million backlog and a robust pipeline of approximately 70 potential projects. The company is targeting expansion across the Asia-Pacific region, capitalising on the region’s rapid edge data centre market growth driven by AI, machine learning, and subsea cable deployments.

DXN’s strategic focus includes further cost efficiencies, growing recurring revenues through DCaaS, and leveraging its modular solutions’ speed and quality advantages. While the company faces risks from competitive pressures, technological shifts, and customer insolvencies, its strengthened capital structure and diversified operations provide a solid foundation for future performance.