Cloud, cyber and AI demand push Macquarie to continued growth

The megatrends of cloud, cyber and AI are driving financial success for Macquarie Technology Group, with the business reporting its 20th half of pre-tax earning growth in a row, rising 6 per cent to $56.2 million.

Along with the earnings before interest, tax, depreciation and amortisation (EBITDA) result, Macquarie said in its financial report for the six month period ending 31 December that consolidated revenue and other income was up 1 per cent compared to this time last year, to $183.6 million.

Net profit after tax (NPAT) also increased by 21 per cent, from $14.8 million in the previous corresponding period to $17.9 million.

In response to the results, Macquarie chairman Peter James said the group maintained strong EBITDA margins despite a period of increased cost pressures.

On a segment bases, the shining star for the half year was its Data Centre business, which saw an increase in revenue and other income of 15 per cent, to $39.5 million. EBITDA was also up, rising 5 per cent, to $18.1 million.

Macquarie Technology Group chief executive David Tudehope said construction of the business’ IC3 Super West data centre, which was first announced in 2021 and expanded its loan facility to support its expansion in October last year, is “well underway”.

“Complex ground works are complete and the building structure is progressing well,” he said. “Phase 1 of construction is expected to be completed in Q3 2026. Our hybrid design allows for a mix of traditional cloud and direct to chip cooling technologies, making IC3 Super West AI ready.”

Macquarie also said that it was successful in its development plans to increase the facility’s density to 47MW, with access of 63MW of power to be available on opening. Phase 1 construction costs are expected to land around $350 million and is forecast to be on time and on budget.

Additionally, the group is focused on acquiring a new campus in Sydney as part of its growth plans to ensure capacity runway for customers and prospects.

Cloud Services and Government saw comparatively mild growth, with revenue and other income increasing 1 per cent, to $103.9 million, and EBITDA growth of 4 per cent, to $26.5 million.

Meanwhile, Telecom revenue and other income fell 6 per cent, to $57.4 million, yet EBITDA was up 12 per cent, to $12.5 million.

Looking to the next six month period, full year EBITDA is expected to reach between $112 million to $115 million, which includes Data Centres’ EBITDA of $36 million to $37 million.

Meanwhile, Cloud Services and Government EBITDA margin from the first half of the financial year is expected to be maintained through the second half, with the impact of US tech vendors forecast to ease in its financial year for 2026.

Full year revenue for Telecom is expected to decline due to a reduction in NBN business broadband pricing plus a change in mix from high-revenue voice services to low revenue higher margin data services. However, the group added that operational efficiencies will continue to maintain EBITDA margins in the second half of the financial year.