Infratil hikes earnings guidance as data centre growth accelerates

Infratil raised its earnings outlook as surging demand for data centres boosts growth across its portfolio.

The Infratil Ltd (ASX: IFT) share price is in focus today after the company upgraded its FY27 proportionate EBITDAF guidance on soaring data centre demand. Key highlights include contracted capacity at CDC Data Centres reaching 1.1GW and a step-up in earnings outlook for both CDC and US-based Longroad Energy.

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What did Infratil report?

  • FY27 proportionate EBITDAF guidance lifted to NZ$1,320 million–$1,420 million (previously NZ$1,300 million–$1,400 million).
  • CDC Data Centres' FY27 EBITDAF guidance raised to A$710 million–$750 million (from A$680 million–$720 million) after new contract wins and operating cost savings.
  • CDC now has 1.1GW of contracted capacity, expected to deliver A$2.2 billion annualised EBITDAF when fully deployed.
  • Longroad Energy is scaling up, acquiring a 2.8GW project and targeting a 14GW energy fleet by 2029.
  • One New Zealand continues strong cash generation, growing mobile revenue share and progressing IT simplification.

What else do investors need to know?

Infratil's portfolio now stands at NZ$22 billion in total assets, with data centre investments making up over half that value. The company is actively refining its portfolio, including a sales process for its Qscan radiology business, and ongoing investments in infrastructure optimisation.

Longroad Energy is meeting strong US market demand by ramping up its renewables development, while also exploring data centre co-location at its solar farm sites. In New Zealand, EonFibre has completed its first year as a separated business and is positioned to capture future AI-driven data centre growth.

What did Infratil management say?

Infratil Chief Executive Officer Jason Boyes said:

Our global portfolio provides multiple pathways to grow returns across the AI infrastructure value chain. We're pursuing attractive opportunities adjacent to our core energy and data centre investments, including leveraging our existing platforms across geographically diverse markets, as well as exploring new sectors for future growth.

What's next for Infratil?

Infratil is focused on scaling its core data centre and renewables businesses, maintaining capacity for future growth with a strong BBB+ balance sheet rating. The company is also searching for new verticals and adjacencies that align with its infrastructure expertise and target returns.

Capital management remains a priority, with further divestments planned to fund growth opportunities. Infratil's strategy is underpinned by steady contracted revenue streams and a disciplined approach to deploying capital in high-demand sectors like AI, digital infrastructure, and renewables.

Infratil share price snapshot

Over the past 12 months, Infratil shares have declined 2%, matching the S&P/ASX 200 Index (ASX: XJO), which has also fallen 2% over the same period.

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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.

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