Nextdc Ltd (ASX: NXT) shares are on the move on Friday morning.
At the time of writing, the ASX 200 AI stock is up 18% $17.39.
This follows the release of the data centre operator's FY 2025 results.
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ASX 200 AI stock rocket on results
For the 12 months ended 30 June, NextDC reported a 6% increase in total revenue to $427.2 million and a 14% lift in net revenue to $350.2 million. The latter was a touch ahead of its guidance range of $340 million to $350 million.
This was underpinned by a record level of new contracted sales (72.2MW), including the first 10MW foundational hyperscale order at KL1 Kuala Lumpur.
Commenting on its outperformance, NextDC's CEO and managing director, Craig Scroggie, said:
FY25 exceeded net revenue guidance and set new contracting records. Our Forward Order Book is greater than the entire billing footprint today, and with a strong liquidity position we are rapidly bringing capacity forward to turn contracted commitments into revenue and cash flow while scaling for extraordinary AI and cloud demand across Asia-Pacific.
NextDC also delivered on its earnings guidance. It reported a 6% increase in underlying EBITDA to $216.7 million. This is at the upper end of its guidance range of $210 million to $220 million.
The ASX 200 AI stock's capital expenditure came in at $1,699 million for the year. While this was ahead of its guidance range of $1,400 million to $1,600 million, management thinks it will be worth it. It highlights that this record capex spend will help it "take advantage of the unprecedented level of customer demand."
It has commissioned (added) 42.7MW of built capacity during FY 2025 with a further 121MW of capacity in progress at 30 June 2025.
Outlook
Management expects that its recent record sales will begin to convert into revenue and earnings in FY 2026.
As a result, it is guiding to net revenue of $390 million to $400 million, which represents an increase of 11.3% to 14.2% year on year.
Similar growth is expected for its earnings, with underlying EBITDA guidance of $230 million to $240 million for FY 2026. This would be an increase of 6% to 11%.
Commenting on the year ahead, Mr Scroggie said:
FY26 will be a landmark year for NEXTDC as we make strategic investments to expand our platform, positioning us at the forefront of the digital infrastructure boom driven by the fourth industrial revolution. As data centres become the factories of the future, transforming data into actionable insights, our focus is on capitalising on this historic technological transformation. These investments will reinforce our role as a critical enabler of innovation, where robust digital infrastructure is the foundation of tomorrow's enterprises.
As AI and cloud technologies increasingly drive global enterprise, the demand for speed, scalability, and reliability in digital infrastructure will continue to surge. NEXTDC is at a pivotal inflection point, strategically building the foundational systems that will empower hyperscale customers, enterprises, and Government agencies to excel in this new era. We are confident that these targeted investments will not only fuel significant growth but also position NEXTDC as a central pillar in the digital infrastructure landscape across the Asia Pacific region.
