Investing.com -- Nextdc (ASX:NXT) shares plunged to a near nine-year low on Wednesday after the Australian data centre operator sharply cut its fiscal 2027 earnings outlook, citing delays to power infrastructure at its M3 Melbourne facility that will defer the delivery and billing of contracted capacity.
Shares fell 42.1% to A$5.32, their lowest level since January 17, 2018, while the broader S&P/ASX 200 was little changed.
NextDC now expects FY27 net revenue of A$475 million to A$500 million, down from its previous forecast of A$615 million to A$640 million. Underlying earnings before interest, taxes, depreciation and amortisation are forecast at A$245 million to A$265 million, compared with the earlier range of A$385 million to A$410 million.
The revisions follow delays to electricity network works by Jemena Electricity Networks, which has suspended parts of the project because of community and stakeholder opposition. The next increase in grid supply to M3 is now expected in FY28, pushing back the delivery and billing of contracted capacity.
NextDC said the revised FY27 guidance excludes revenue and underlying EBITDA from affected M3 customer contracts, including capacity already billing, because the existing grid supply cannot be relied upon to support the full contracted power ramp.
The affected contracts remain in place, but the company is assessing potential service-level credits, termination rights and whether contractual relief may be available.
The company also cut FY27 capital expenditure guidance to A$4.5 billion to A$5 billion from A$5.25 billion to A$5.75 billion.
It has put new development projects and land acquisitions on hold while reviewing spending priorities, with the board expected to announce the outcome by its annual general meeting on November 20.
Planning decisions for later stages of the Melbourne project are also delayed until 2027, as Victoria enters a caretaker period ahead of its November 28 state election.
Original Article
NextDC shares plunge 42% to a near nine-year low after outlook cut
Align Partners discloses 1.5% stake in SK, flags 75% valuation discount - report
