NXT: Updating Model for 250MW Contract Win & Recent Capital Raising Activity

Research evidence excerpt

NXT: Updating Model for 250MW Contract Win & Recent Capital Raising Activity

rated hyperscaler under an approximately 15-year contract, with EBITDA Revenue:EBITA, Adj:RevenueUnderlyingexcludingEBITDAinterestas reportedincomeby the company

conversion expected progressively from FY26 through FY30. AllPricedvaluesas ofin priorAUD unlesstradingotherwiseday's marketnoted.close, EST (unless otherwise noted).

• Capital Raising and Liquidity: The Company raised approximately A

$1.5 billion through a fully underwritten 1-for-5.4 pro-rata entitlement

equity offer at A$12.70/sh, alongside a A$1.7 billion Hybrid Securities

commitment from CDPQ. Pro forma liquidity is estimated at

approximately A$5.9 billion, rising to approximately A$8.4 billion with

additional planned senior debt and Wholesale Notes. FY26 capex

guidance was increased by A$300 million to A$2,700 million–A$3,000

million, with FY27 capex forecast at approximately A$5.0 billion, entirely

tied to contracted demand.

• Financing and Capital Structure Strategy: The Company outlined plans

to ring-fence individual assets into separate financing vehicles, with

customer contracts underwritten directly by lenders rather than relying

on NEXTDC's broader balance sheet, an approach similar to ABS-style

or project-finance-style funding expected to support higher leverage

capacity and lower funding costs over time. Capital recycling or JV

structures at S4 and S7 are intended to be pursued once assets are

delivered and cash-generating, with no fixed stake or structural detail

disclosed, ahead of any private capital partnership from 2027.

• Model update: Our FY26/FY27 estimates are mostly unchanged for

revenues of A$485/A$761M million and Underlying EBITDA of A$233/

A$365M. FY26/FY27E total capex increases to A$2,901/A$5,073M,