Macquarie Technology: Twelve years of EBITDA growth

The Macquarie Technology Group Ltd (ASX: MAQ) share price is on watch after the company reported its twelfth straight year of EBITDA growth, with FY26 EBITDA up 2% to $115.9 million and strong cash flow performance.

What did Macquarie Technology report?

• EBITDA rose 2% to $115.9 million for FY26, marking twelve consecutive years of growth
• Operating cash flow reached $94.6 million with cash conversion of 108%
• 95% of revenue came from contracted monthly recurring revenue streams
• Significant investment in data centre infrastructure, with growth capex of $193.3 million
• Undrawn debt facility of $496.5 million and $100 million Hybrid Securities Series 2 available
• Australian Government invested $200 million from the National Reconstruction Fund Corporation

What else do investors need to know?

Macquarie Technology accelerated development of its IC3 SuperWest data centre and completed the acquisition of a new 34,200sqm site at Macquarie Park, intended for a 200MW engineering and technology campus (METC). Construction on IC3 SuperWest remains on budget and on schedule, with Stage 1 expected to complete by September 2026.

The company’s balance sheet was further strengthened by government investment, and its recurring revenue mix remains robust. Ongoing strategic investments are focused on supporting cloud, AI, and cyber security demand as well as enhancing sustainable infrastructure, including advanced cooling technologies with limited water use.

What did Macquarie Technology management say?

Chief Executive David Tudehope said:

Our capital structure has become increasingly diversified through the introduction of the Australian Government’s NRFC as a strategic investor. Combined with our existing debt facilities, this long-term source of capital provides additional financial flexibility to support the development of sovereign secure digital infrastructure, cyber security services and future growth initiative.

What’s next for Macquarie Technology?

The company expects modest FY27 EBITDA growth, assuming revenue from IC3 SuperWest Phase 1 begins in the second half. Investment will ramp up in people, AI-ready infrastructure, and product development to support anticipated growth across cyber security, cloud, and networking.

Macquarie Technology’s focus remains on expanding capacity, finalising customer agreements for major data centre projects, and supporting innovation in AI and cloud for business and government clients. The METC project is progressing, with community features and academic partnerships planned, although major construction is still subject to approvals.

Macquarie Technology share price snapshot

Over the past 12 months, Macquarie Technology shares have declined 9%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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