NEXTDC lifts contracted utilisation and order book in December update

NEXTDC has ramped up its contracted utilisation and forward order book, flagging ongoing revenue growth over the next several years.

| More on:
A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • NEXTDC's contracted utilisation has surged 30% to 412MW due to new customer wins, with the pro-forma forward order book growing to 301MW.
  • Despite these gains, FY26 financial guidance remains unchanged, reflecting confidence in revenue and EBITDA growth through FY29 as order book commitments convert.
  • NEXTDC continues to lead in operational excellence and sustainability, poised to meet the rising demand for cloud connectivity and IT infrastructure, though shares have declined 22% over the past year.

The NEXTDC Ltd (ASX: NXT) share price is in focus today after the company reported strong progress on its contracted utilisation, jumping 30% to reach 412MW following new customer wins. NEXTDC's pro-forma forward order book also grew significantly, now totalling 301MW.

What did NEXTDC report?

  • Contracted utilisation rose by 96MW (30%) to 412MW since 1 December 2025
  • Pro-forma forward order book increased to 301MW
  • FY26 net revenue, underlying EBITDA and capex guidance remain unchanged
  • Forward order book expected to convert into revenue and EBITDA between FY26 and FY29

What else do investors need to know?

NEXTDC's latest customer contract wins highlight strong demand for its data centre services, underpinning long-term growth potential across Australia and Asia. The company's expanding forward order book is set to progressively boost billings and revenue streams over several years.

NEXTDC continues to focus on operational excellence and sustainable growth, with its Tier IV certified data centres recognised internationally for efficiency and reliability. Its business remains carbon neutral and at the forefront of energy efficiency in the sector.

What's next for NEXTDC?

NEXTDC's unchanged FY26 financial guidance suggests confidence in its growth trajectory, despite a rapidly growing pipeline. With sizeable contracted utilisation and a substantial forward order book, management expects ongoing conversion of these commitments into tangible revenue and earnings over FY26 to FY29.

The company is likely to keep investing in new capacity, innovation, and sustainability as it powers the ever-increasing demand for cloud connectivity and IT infrastructure across the region.

NEXTDC share price snapshot

Over the past 12 months, NextDC shares have declined 22%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

More on Share Market News

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.
Opinions

The pros and cons of buying Zip shares in 2026

There are positive and negative aspects about Zip shares right now…

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Buy, hold, sell: CBA, REA Group, and Xero shares

Morgans has given its verdict on these popular stocks. Let's see if it is bullish on them.

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Share Market News

Here's what Westpac says the RBA will do with interest rates in 2026

Stick or twist? Let's see what the RBA could do with rates this year.

Read more »

A woman stretches her arms into the sky as she rises above the crowd.
Best Shares

Fastest rising ASX 200 share of each market sector in 2025

These shares outperformed their sector peers last year.

Read more »

A couple stares at the tv in shock, with the man holding the remote up ready to press a button.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Buy, hold, sell: Aristocrat, James Hardie, and TechnologyOne shares

Morgans has given its verdict on these popular shares. Is it bullish, bearish, or something in between?

Read more »

Group of entrepreneurs feeling frustrated during a meeting in the office. Focus is on man with headache.
Share Fallers

5 worst ASX All Ords shares of 2025, and why brokers rate 4 of them a buy

The ASX All Ords rose by 7.11% in 2025 but as always, there were losers in the pack.

Read more »

A female soldier flies a drone using hand-held controls.
Best Shares

These 5 ASX All Ords shares were the fastest risers of 2025

The ASX All Ords rose by 7.11% and delivered total returns, including dividends, of 10.56% in 2025.

Read more »