• 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.

• Warning! GuruFocus has detected 12 Warning Signs with ASX:IFT.

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.

Q: Can you clarify the potential impact on CDC's contracted EBITDA if the 300 megawatts are signed pre-Christmas? A: There will be some modest reservation, but we expect the capacity to come online as planned. The EBITDA per megawatt might dip slightly below $2 million but should trend back up over time.

Q: Are there any participation rights for Infratil in the partial sale process for CDC if the price is high? A: We do not have any participation rights in the sale process, but we are closely monitoring the situation.

Q: With the US election outcomes, is there a risk of delay in Longroad Energy's 9.5 gigawatts capacity target by 2027? A: The 9.5 gigawatts target may be high given current yields. We are focusing on value creation per year, and while delays are possible, especially post-election, we are working to mitigate these risks.

Q: Regarding One NZ, is there potential for further efficiencies, and how does the company plan to handle competitive pricing pressures? A: Yes, further efficiencies are possible, particularly through IT transformation. We do not intend to follow the market down on pricing, focusing instead on providing high-quality offerings and maintaining a long-term focus.

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