DXN sales jump 380% to $3.4M in Q1 FY27

Full story: https://grafa.com/en/news/australia/dxn-sales-jump-380-to-3-4m-in-q1-fy27

Key points

• DXN recorded Q1 FY27 revenue of approximately $3.4 million, representing a 380% surge compared to the prior corresponding period.

• Following the quarterly announcement, DXN shares plunged 50% to $0.133 in trading.

• The company is expanding production at its Seven Hills facility while pivoting to build new artificial intelligence deal opportunities.

DXN (ASX:DXN) delivered Q1 FY27 revenue of approximately $3.4 million as previously deferred modular projects progressed through manufacturing and delivery.

The revenue figure represents a 380% increase over the $0.7 million recorded in the prior corresponding period.

The company secured over $19 million of new contracts and variations during the quarter, including a $12.2 million deal for a 2MW turnkey AI modular data centre.

Shalini Lagrutta, Managing Director of DXN, commented, “We secured a $12.2 million AI HPC contract, won a flagship edge data centre for Melbourne Airport and continued to build our footprint in Pacific subsea cable infrastructure.”

DXN faced a setback after quarter-end as its maiden US-listed customer signalled plans to cancel an $8.8 million AI contract, though DXN expects to recognise $4.2 million of that value.

The company stated that it expects to achieve $11 million in H1 FY27 revenue, supported by production at its temporary manufacturing facility in Seven Hills.

Following the announcement, the DXN share price was down at $0.12.

DXN operates as a vertically integrated specialist in prefabricated modular data centres across Australia and international markets.

The business maintained an adjusted total backlog of $30.8 million as of Sept. 30 while growing its AI pipeline opportunities to 28%.