Company Reports

Macquarie Technology delivered a 2% increase in fiscal 2026 EBITDA to AUD 116 million, comfortably within guidance. The outlook is for similar "modest growth" in fiscal 2027, while data center expansions are on track to significantly elevate earnings longer term.

Customer service is Macquarie Technology’s key focus across its three segments of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator and competitive advantage. On this metric, the group has improved to 87 in fiscal 2025 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs, and carefully targeting customers (not too big and demanding, not too small justify the servicing).

Data center, or DC, histrionics inundate financial media daily. From start-ups enjoying rising valuations with opaque revenue outlook to firms buoyed by "AI-powering, picks-and-shovels" narratives, the data center thematic is captivating investors. We assess its relevance to Macquarie Technology.

Customer service is Macquarie Technology’s key focus across its three divisions of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator and competitive advantage. On this metric, the group has improved to 87 in fiscal 2025 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs, and carefully targeting customers (not too big and demanding, not too small justify the servicing).

Customer service is Macquarie Technology’s key focus across its three segments of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator and competitive advantage. On this metric, the group has improved to 87 in fiscal 2025 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs, and carefully targeting customers (not too big and demanding, not too small justify the servicing).

Macquarie Technology's first-half fiscal 2026 EBITDA grew 3% to AUD 58 million, on a revenue lift of 5% to AUD 193 million. However, net profit of AUD 16 million was down 9%, dragged lower mostly by higher interest costs as the group continues its "on-track, on-budget" data center developments.

The New South Wales Treasurer recently poured the final concrete on Macquarie Technology's new IC3 SuperWest data center project. The phase 1 AUD 350 million investment is on time and on budget, with 6 megawatts of capacity set to be ready for service from September 2026.

Customer service is Macquarie Technology’s key focus across all its three units of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator and competitive advantage. On this metric, the group has improved to 87 in fiscal 2025 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs and careful targeting of customers (not too big and demanding, not too small justify the servicing).

Macquarie Technology's fiscal 2025 EBITDA grew 4% to AUD 114 million, and net profit rose 6% to AUD 35 million. Mid-single-digit earnings growth was delivered by cloud services and government, as well as data centers, while the telecom unit delivered a 1% increase. No dividends were declared.

Customer service is Macquarie Technology’s key focus across all its three divisions of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator. On this metric, the group has improved to 87 in fiscal 2025 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs and careful targeting of customers (not too big and demanding, not too small justify the servicing).

Reserve Bank of Australia modelling suggests US tariffs could wipe around one percentage point from Australian GDP growth over the next few years. While the chance of a recession is higher, its impact and duration may be mitigated by monetary and/or fiscal responses deployed.

Customer service is Macquarie Technology’s key focus across all its three divisions of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator. On this metric, the group has improved to 86 in fiscal 2024 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs and careful targeting of customers (not too big and demanding, not too small justify the servicing).

Macquarie Technology's fiscal 2025 interim EBITDA grew by 6% to AUD 56 million. Margin performance was again impressive at 30.6%, from 29.2% a year ago, despite various cost and structural issues. The balance sheet is pristine, as the group progresses its data center field of dreams.

Customer service is Macquarie Technology’s key focus across all its three divisions of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator. On this metric, the group has improved to 86 in fiscal 2024 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs and careful targeting of customers (not too big and demanding, not too small justify the servicing).

We initiate coverage on no-moat Macquarie Technology with a fair value estimate of AUD 73 per share and a High Uncertainty Rating. Shares are currently trading at a 21% premium to our intrinsic assessment, buoyed by bullish market expectations on the group’s aggressive data center aspirations.

Customer service is Macquarie Technology’s main focus across all its three divisions of telecom, cloud services and government, and data centers. Management considers its long track record of peer-leading net promoter score as a key differentiator. On this metric, the group has improved to 86 in fiscal 2024 from 56 in fiscal 2015, compared with the benchmark range of 50-60. Macquarie Technology achieves this by maintaining local call centers, providing prompt resolution of issues, delivering proactive solutions to serve customer needs and careful targeting of customers (not too big and demanding, not too small justify the servicing).