Infratil Ltd (ASX:IFT) Half Year 2025 Earnings Call Highlights: Strong Performance Amid Market ...

In This Article:

  • Proportionate EBITDAF: $506 million for the half, a 7% increase on a like-for-like basis compared to the previous period.

  • Proportionate Development EBITDAF: Loss of $28 million.

  • Proportionate CapEx: Increased by 50% to $1.2 billion.

  • Interim Dividend: $0.0725 per share, unimputed.

  • CDC EBITDAF: On track, with significant demand growth and customer negotiations.

  • One NZ EBITDAF: $304 million, a 9% increase from the prior period.

  • One NZ EBITDAF Margin: 32%, up from 30% in FY24.

  • One NZ Operating Free Cash Flows: $117 million, up $21 million from the comparable period.

  • Longroad Energy EBITDAF: Down compared to the same half last year due to previous high prices.

  • Diagnostic Imaging Earnings Growth: On track for double-digit growth despite cost pressures.

  • CapEx Guidance: Revised to $2.4 billion to $2.8 billion.

  • Debt Facilities and Liquidity: Improved financial flexibility following the June equity raise.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Infratil Ltd (ASX:IFT) reported a strong operating performance across its portfolio, despite challenging market conditions.

  • CDC Data Centres, the company's largest investment, continues to experience significant demand growth, leading to ongoing investment in construction and securing power and land for future projects.

  • One NZ performed well, aligning with guidance and making substantial progress on strategic priorities, contributing to a 9% increase in EBITDAF.

  • The merger of Manawa Energy and Contact Energy was announced at a significant premium, with expected strong benefits for both companies.

  • Infratil Ltd (ASX:IFT) completed a successful equity raise in June, enhancing balance sheet flexibility to support growth and shareholder value creation.

Negative Points

  • Uncertainty from the US election results poses a potential headwind for Longroad Energy, particularly concerning tariffs and green policies.

  • The investment in Console Connect was canceled, which was disappointing as the company remains positive about global next-generation connectivity platforms.

  • Proportionate development EBITDAF reported a loss of $28 million, highlighting challenges in development expenditure.

  • CDC Data Centres is trending towards the lower end of its guidance range due to shifts in project timelines.

  • The Commerce Commission charges against One NZ could pose legal and financial challenges, although the company intends to challenge the charges vigorously.

Q & A Highlights

Q: Regarding CDC, has the timeline for the 388 megawatts online by the end of FY26 changed, and does this affect the EBITDA outlook? A: The timeline for the 388 megawatts remains unchanged, and we still expect strong EBITDA growth in FY26. Some workloads have shifted, but the overall completion timeline is intact.