NEXTDC shares fell 41.72% on Wednesday after the Australian data center operator cut its fiscal 2027 forecasts, as a delayed grid upgrade pushed back power for contracted capacity at its Melbourne M3 facility.
The stock closed at A$5.35 on the Australian Securities Exchange, according to market data.
In a filing to the Australian Securities Exchange, NEXTDC lowered its fiscal 2027 net revenue forecast to A$475 million to A$500 million from A$615 million to A$640 million. Its Underlying EBITDA forecast fell to A$245 million to A$265 million from A$385 million to A$410 million.
The company’s August guidance included about A$140 million in each category from M3 contracts affected by the power delay. NEXTDC excluded the affected M3 contracts from its fiscal 2027 guidance because it cannot reliably estimate their contribution, including revenue from capacity already billing.
NEXTDC said Jemena Electricity Networks (Vic) Ltd suspended parts of its 66-kilovolt line work in September and does not expect to resume before February 2027. NEXTDC said Jemena linked the stoppage to safety concerns and restricted access amid community and stakeholder opposition. The work also awaits local council consent while consultations continue.
NEXTDC now expects the next increase in M3’s grid supply in fiscal 2028. It said customer agreements remain in place, subject to contractual rights, and construction of new data halls is continuing. The agreements can provide for service credits if capacity arrives late or lacks full power, and for termination in some circumstances.
The company also cut its fiscal 2027 capital spending guidance to A$4.5 billion to A$5 billion from A$5.25 billion to A$5.75 billion. It said it was directing spending toward capacity already contracted by customers.
NEXTDC plans to update investors at its Nov. 20 annual meeting. It expects the Victorian government’s planning decision on M3 Stages 6 and 7 only after the state’s Nov. 28 election.
