Daily Roundup

Megaport rides the AI wave with nearly $1 billion in new contracts

Megaport Limited is having quite the moment. The infrastructure company just locked in three new AI-focused contracts worth approximately $978.6 million combined, a move that's pushing its annual recurring revenue to around $1.1 billion. These deals span GPU and CPU compute, network, and storage solutions for AI applications—essentially the backbone of what companies need to power their AI ambitions.

The wins are substantial enough that Megaport's upgrading its full-year guidance. The company now expects FY27 revenue between $720 million and $810 million, with EBITDA margins holding steady at 42-44%. Capital expenditure is climbing to $1.78 billion to $1.88 billion to support these new contracts and replenish GPU inventory. The good news? Megaport says it's fully funded for all this, with pro forma liquidity sitting at approximately $362.2 million.

Communications boom at Codan as conflict demand surges

Over at Codan Ltd, the Communications segment is firing on all cylinders. The business is expected to rake in over $400 million in revenue for the first half of FY27, driven largely by strong demand from conflict regions. The segment's maintaining an impressive 40% EBIT margin, which speaks to operational efficiency even amid rapid growth.

The Minelab division isn't lagging either, posting a revenue run-rate that's slightly ahead of where it finished last year. Codan's projecting Group net profit after tax of at least $160 million for H1 FY27. Looking ahead to the full year, the company's targeting 30-40% revenue growth in its Communications segment—a significant acceleration that reflects where the real demand is right now.

Mining and engineering updates

Develop Global Ltd has laid out its FY27 production roadmap. Woodlawn is expected to produce between 775,000 and 875,000 tonnes of ore grading 2.7% copper equivalent, while Pioneer Dome will mine 650,000 to 750,000 tonnes at 1.2% lithium oxide. The Yitirrti project remains under construction with capital allocation between A$367 million and A$406 million. Develop Mining Services is forecasting revenue of A$100 million to A$110 million for the year.

Engineering services firm Lycopodium has landed a contract worth approximately A$42.9 million for engineering and procurement work on Endeavour Mining's Assafou Gold Project in Côte d'Ivoire. The scope includes designing and procuring equipment for a 5.0 million tonne per annum processing plant. It's a solid win for Lycopodium, which has already completed the feasibility studies on this project. That said, full project implementation hinges on Endeavour's final investment decision, expected before year-end 2026.

XReality Group signals changes ahead

Xreality Group Limited, which specializes in military and law enforcement simulation software alongside VR and AR entertainment ventures, has flagged that a revised Appendix 4E will hit the market before trading resumes on 30 September 2026. The company requested a trading halt on 28 September, suggesting some material updates are coming—though details remain under wraps for now.