Macquarie Technology Group has reported its eleventh consecutive year of EBITDA growth, driven by strategic investments in data centre infrastructure and AI capabilities. The company is advancing its IC3 SuperWest project and has secured land for a new Sydney data centre campus.
- Eleven consecutive years of EBITDA growth, reaching $113.6 million in FY25
- Capital expenditure of $150.1 million, including $106 million for IC3 SuperWest data centre
- Strong balance sheet with $450 million undrawn debt facility and $62 million cash reserves
- New land option secured for a large Sydney data centre campus with over 150 MW planned capacity
- FY26 outlook includes marginal EBITDA growth and continued investment in AI and cloud infrastructure
Consistent Growth Amid Digital Infrastructure Expansion
Macquarie Technology Group Ltd (ASX – MAQ) has announced its financial results for the year ended 30 June 2025, marking its eleventh consecutive year of EBITDA growth. The company reported an EBITDA of $113.6 million, reflecting steady progress aligned with its digital infrastructure strategy. Chairman Peter James highlighted the company’s consistent execution as the foundation for this sustained growth.
The company’s operating cash flow stood strong at $109.9 million, supported by effective tax management and a robust conversion rate of EBITDA to cash flow. This financial strength is further underpinned by a solid balance sheet, featuring an undrawn debt facility of $450 million alongside approximately $62 million in cash and deposits, positioning Macquarie Technology well for future investments.
Strategic Investments in Data Centres and AI
Capital expenditure reached $150.1 million in FY25, with a significant portion; $106 million; allocated to the IC3 SuperWest data centre project. This facility, located at the Macquarie Park Data Centre Campus, is designed to meet the growing demand for high-density AI and cloud infrastructure, with phase 1 construction on track for completion by September 2026. The project will deliver 6 MW of IT load initially, with a total approved capacity of 47 MW.
In addition to IC3 SuperWest, Macquarie Technology has secured a put and call option to purchase a large parcel of land in Sydney for a new data centre campus. Subject to regulatory and board approvals, this campus is planned to be developed in three stages, ultimately providing over 150 MW of IT load capacity. This move signals the company’s commitment to expanding its footprint in Australia’s critical digital infrastructure landscape.
Navigating Market Pressures and Future Outlook
Looking ahead to FY26, the company anticipates marginal EBITDA growth, reflecting a cautious but optimistic stance amid ongoing market pressures. The Corporate, Security & Government (CS&G) segment expects revenue growth but faces margin compression due to new product investments and cost pressures. Meanwhile, the Telecom segment is forecast to return to FY23 EBITDA levels, with margins stabilizing after adjustments to pricing structures.
Macquarie Technology is also investing heavily in AI capabilities, both to support its customers’ evolving needs and to enhance internal operational efficiencies. This dual focus on external service innovation and internal optimisation positions the company to capitalize on the accelerating demand for AI-driven solutions.
Capital expenditure for FY26 is projected between $206 million and $234 million, including $170 million to $190 million for IC3 SuperWest. The company plans to fund these investments through its strong cash reserves and debt facilities, maintaining financial flexibility as it scales its infrastructure.
Bottom Line?
Macquarie Technology’s steady growth and strategic investments set the stage for a transformative expansion in Australia’s data centre landscape.
Questions in the middle?
- How will regulatory approvals impact the timeline for the new Sydney data centre campus?
- What competitive advantages will IC3 SuperWest offer in the rapidly evolving AI infrastructure market?
- How might margin pressures in the CS&G segment affect overall profitability beyond FY26?