Infratil Limited

Infratil reported proportionate operational EBITDAF of $989 million, almost $1 billion and in the top half of guidance, with proportionate CapEx of $2.7 billion and total asset value up 13%. CDC delivered a nearly 20% uplift in EBITDAF during the year, completed 350 of the 450 megawatts under construction at the start of the year, and had 572 megawatts under construction at year-end. Longroad EBITDA increased 170% to $121 million and its end-of-year OpCo run rate EBITDAF was USD 367 million. One NZ EBITDAF was up $4 million on the prior period; EonFiber posted its first full year of operation with EBITDAF of $65 million. The dividend was $0.1365, with no imputation credits and a 2% DRP discount. Infratil said available liquidity was $1.1 billion at 31 March, and the S&P BBB+ rating is expected to help lower funding costs, with savings in the order of $10 million per annum in the medium term. Forward guidance: CDC FY27 EBITDAF is $680 million to $720 million, FY28 remains targeted at $1 billion, and FY30 at $2 billion. Longroad FY27 EBITDAF guidance is $120 million to $135 million, with OpCo run rate EBITDAF targeted to approach $500 million over the year and $1 billion by the end of the decade. One NZ guidance was described as an uplift versus the previous year, with CapEx unchanged and medium-term EBITDAF, EBITDA margin, and CapEx intensity targets unchanged.

Jason Boyes framed the year as a strong one for the portfolio, with the big growth engines being CDC and Longroad and with Infratil positioned to keep funding that growth after its new credit rating. He emphasized that CDC is benefiting from AI infrastructure demand and that Longroad is expanding into both renewables and adjacent data center opportunities, including co-located powered land. His tone was upbeat but not complacent: he repeatedly noted that some businesses are under pressure, and that the portfolio is being reshaped through divestments and a more focused strategic direction.

Andrew Carroll highlighted the headline financials: $989 million of proportionate operational EBITDAF, $2.7 billion of proportionate CapEx, and 13% growth in total asset value. He said the S&P BBB+ rating, new banking arrangements, and capital bond issuance are materially improving funding flexibility and should translate into about $10 million per year of interest savings in the medium term, while liquidity stood at $1.1 billion at 31 March. On returns and shareholder distributions, he noted the dividend of $0.1365, the 2% DRP discount, and said medium-term guidance items were largely unchanged apart from the separate corporate cost presentation and higher CapEx guidance tied mainly to CDC.

Analysts focused heavily on CDC valuation, asking how much of the new 555-megawatt contract and the 572 megawatts under construction were reflected in the independent valuation and what CapEx was still needed. Management said the new contract came after 31 March and therefore was not in the valuation, that peer multiples in the mid- to high-teens are a reasonable benchmark for contracted earnings, and that the 572-megawatt build is around one-quarter spent. Questions also probed Longroad’s new data center strategy, with management saying the value is not yet in the independent valuation, the initial land spend is low-single-digit millions, and that the opportunity could create materially more value if powered land is developed or leased out. On Gurin’s Project Vanda, management said the delay is mainly about government-to-government approvals and the Indonesian export license rather than project-specific roadblocks.