Infratil’s EBITDAF Rises 7% to NZ$514m, Fortysouth Stake Sold for $200m+

Earnings Growth Driven by Diversified Portfolio

Infratil Limited has reported a solid 7% increase in its proportionate operational EBITDAF, reaching NZ$514 million for the six months ended 30 September 2025. This growth was primarily fueled by strong earnings momentum from its key investments in Longroad Energy in the United States and CDC Data Centres in Australasia.

Despite a subdued economic environment in New Zealand, Infratil’s geographically and sector-diverse portfolio enabled it to navigate market and regulatory challenges effectively. The company’s strategic focus on digital infrastructure and renewable energy has positioned it well to capitalize on rising demand, particularly in data centre capacity and clean energy projects.

Portfolio Refinement and Divestments

In line with its strategy to streamline and strengthen its portfolio, Infratil announced the conditional sale of its 20% stake in Fortysouth to InfraRed Capital Partners and Pantheon for proceeds exceeding NZ$200 million. Additionally, the sale of a legacy property asset in Auckland for NZ$55 million was confirmed. These transactions advance Infratil’s medium-term divestment target of NZ$1 billion, with over half already achieved when combined with the earlier sale of RetireAustralia.

These divestments allow Infratil to reallocate capital towards high-conviction growth platforms such as CDC and Longroad Energy, which continue to deliver robust earnings and development pipelines. The company also announced a strategic review of its 57% shareholding in Australian medical imaging business Qscan, signaling ongoing portfolio optimization.

Strong Financial Position and Dividend Stability

Infratil’s net parent surplus surged to NZ$606 million, a significant turnaround from a loss of NZ$247 million in the prior comparable period. This improvement reflects asset valuation uplifts, notably in CDC, and gains from the sale of Manawa Energy. Proportionate capital expenditure decreased by NZ$52 million to NZ$1,139 million, reflecting timing differences in project investments.

The company declared an interim dividend of 7.25 cents per share, consistent with the previous half-year, accompanied by a dividend reinvestment plan offering a 2% discount. This balance underscores Infratil’s commitment to delivering shareholder returns while maintaining financial flexibility for growth.

Growth Outlook and Sustainability Focus

Looking ahead, Infratil plans to invest an additional A$250 million in CDC to accelerate data centre construction and meet surging demand driven by AI and cloud computing growth. CDC’s recent contract wins, including a 40MW deal with neocloud provider Firmus Technologies, support its target to double FY25 EBITDAF by FY27.

Longroad Energy continues to expand its renewable energy portfolio, with 3.5GW operational and 1.6GW under construction, including the 1000 Mile solar project supporting Meta’s data centre operations. Gurīn Energy in Asia is poised for growth pending regulatory approvals for Project Vanda, a large-scale solar-plus-battery project.

Sustainability remains a core pillar of Infratil’s investment approach, with the group achieving a 94/100 score in the 2025 GRESB Infrastructure Fund Benchmark and notable ESG recognitions for portfolio companies like One NZ and Wellington Airport.