NextDC shares slump 40% after guidance cut over stalled Melbourne data centre project
NextDC cut its FY27 revenue and EBITDA guidance after Jemena suspended grid connection works for its M3 facility. According to MarketIndex, the shares fell another 40%.
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what happened
According to MarketIndex, shares of Australian data centre developer NextDC (NXT) dropped about 40% again after trading resumed. The company lowered its FY27 outlook after Jemena suspended grid connection works for its M3 Melbourne data centre. The AFR reported that Jemena cited safety concerns and community opposition at work sites.
FY27 net revenue guidance was cut to $475m–$500m from $615m–$640m, and underlying EBITDA to $245m–$265m from $385m–$410m. Capital expenditure guidance fell to $4.5bn–$5.0bn. NEXTDC also warned the delays could affect its ability to draw on $6.7bn of undrawn senior debt.
why it matters
MarketIndex estimates NextDC now trades at about 37x forward EV/EBITDA, up from 26x before the downgrade and versus a peer average of 22x. The same source puts short sellers' gain at roughly $250 million.
market impact
Australian data centre sector: project delays and heavy debt weigh on NextDC shares and sector sentiment
tags
instruments
sources
- Why NextDC is still expensive after a 40% one-day crash — marketindex.com.au, 21 October 2026 at 00:26 UTC
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