DXN sees key financial figures fall in H1 FY26

ASX-listed modular and prefabricated data centre provider DXN has reported its results for the half-year ended 31 December 2025 (H1 FY26), with numbers down across the board.

Group revenues fell by  65.5% from H1 FY25, impacted by customer-driven project deferrals.

Project activity has subsequently resumed on two of the three delayed projects, with revenue expected to strengthen as deferred work is delivered.

Gross profit declined by 78.6% compared to the prior corresponding period, coming in at $491,130.

As a result, the group recorded a loss after income tax of $3.4 million; that was significantly increased from the $1.4 million loss recorded in H1 FY25.

EBITDA also amounted to a loss of $2.6 million, compared to a loss of $224,148 in H1 FY25.

Modular backlog orders increased to $10.1 million, contributing to a total backlog of $14.5 million, supported by what the company described as a "robust pipeline" of 80 identified projects.

In a positive, however, the company saw the first recurring revenue from its Data Centre as a Service (DCaaS) segment received in the half, marking the establishment of a new capital-light revenue stream with initial service fees commencing.

The company also signed a Memorandum of Understanding (MOU) and Shareholder Agreement with Super Sistem Indonesia (SSI) to form a Joint Venture (JV) targeting Indonesia's data centre market, with potential revenue opportunity of approximately US$7 million over the next three years.

Future establishment of localised manufacturing in Jakarta via the JV to bypass import tariffs and capture demand driven by Indonesia's digital infrastructure growth was identified as a priority, as was a continued focus on APAC expansion, leveraging the global customer portfolio into Southeast Asian markets (Singapore, Malaysia, Indonesia) across Modular and DCaaS segments.

DXN continued its execution on its growth strategy in the prefabricated modular data centre sector during the half as the division delivered approximately 50% of revenue.

2025 saw DXN awarded contracts by an unnamed global comms and IT services provider; APTelecom; Ventia; Globalstar; and DP World.

Shalini Lagrutta, MD of DXN, said while project deferrals have delayed revenue recognition in the first half, the company's growing backlog of $14.5 million and expanding pipeline provide strong visibility for underlying demand.

"The JV with SSI is a transformative step in executing our Asia-Pacific strategy, unlocking access to one of Southeast Asia's fastest-growing markets and establishing localised operations for sustainable growth," she said.

"With new recurring DCaaS revenue now flowing and key projects advancing, we remain confident in delivering revenue growth this financial year.”

DXN is targeting revenue growth in FY26, weighted toward 2HFY26 as backlog converts and new initiatives ramp up.

The company also continues to pursue opportunities in mission-critical infrastructure, edge computing, AI, and hyperscale applications across the Asia-Pacific region.