Australia's Megaport signs $687 million AI infrastructure deals, lifts annual forecast

Sept 29 (Reuters) - Australian IT firm Megaport MP1.AX said on Tuesday that it signed three new AI Infrastructure contracts worth a combined A$978.6 million ($686.78 million) and upgraded its earnings forecast for 2027.

Here are some more details:

• The three contracts, with undisclosed customers, cover GPU and CPU compute, networking and storage for AI applications and inference workloads.

• The agreements are expected to generate about A$232.4 million in annual recurring revenue.

• The deals follow four similar AI infrastructure contracts worth A$458.9 million secured in early June, further advancing the company's expansion into AI infrastructure.

• Megaport now sees its full-year group revenue forecast between A$720 million and A$810 million, higher than its previous estimate of A$620 million to A$730 million.

• The company raised its EBITDA margin forecast to 42%-44% from 38%-40%.

• Shares rose as much as 20.5% to their highest level since mid-August and were among the top gainers in the benchmark .AXJO, which was down 0.1%.

($1 = 1.4249 Australian dollars)