IREN Limited

Good day and thank you for standing by. Welcome to IREN Y2026 results call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. And now I'd like to hand the conference over to your first speaker today, Mike Power, Vice President, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon and welcome to IREN'S FY2026 results presentation. I am Mike Power, VP of Investor Relations, and with me on the call today are Daniel Roberts, Co-Founder and Co-CEO, Anthony Lewis, CFO, and Kent Draper, Chief Commercial Officer. Before we begin, please note that this call is being webcast live with a presentation for those dialed in by phone. You can elect to ask a question through the moderator after our prepared remarks. I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. Those statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to slide two of the accompanying presentation and our SEC filings for more information in that regard. With that, I will turn the call over to Dan Roberts.

Thanks, Mike, and thanks, everyone, for joining us. So Will and I started this business on a pretty simple observation. The digital world scales almost instantly. The physical world does not. Power, land, data centres. These things take years to permit, finance and build. And this was the year that stopped being a thesis and became the defining constraint of the whole industry. So if we look at the chart on screen across eight models tracked by Open Router, weekly token usage across large language models increased nearly 17 times in eight months. Every one of those tokens runs on physical infrastructure. It is very difficult to serve demand shaped like that with infrastructure on three-year lead times. And this is the start of the cycle, not the end. Cheaper compute doesn't make existing things more efficient. It makes new things economic. Infrastructure enables applications. Applications create demand for more infrastructure. Every build-out in history has worked this way. and that's the structural disconnect and it's only getting wider. So let me walk through how we're set up against that backdrop. So we operate across three layers from the bottom up. So first of all, the data centres, the land, the power, the substations, the cooling. Arguably the hardest layer to build and that's where the shortage begins. Then the compute, the GPUs, Storage, networking that go inside the data centres. And then finally, software on top. The managed services and enterprise support. That's where Mirantis lives for us. And just today, Mirantis was named an inaugural NVIDIA certified hypervisor. So we've now got NVIDIA validation at the software layer as well as the hardware. Why own all three? Because each layer makes the one underneath it worth more. A grid connection is worth more with a data center on it. Worth more again with GPUs inside. More again with services wrapped around the customer. Most of this market rents at least one of those layers. We own the entire stack. So here's how the year went. Just move on to highlights, please, operator. Thank you. Four things to take away from this update. and I'll be quick because there's more detail coming a little bit later. So firstly, customers. New multi-cloud contracts including Cohere, Prometheus, Perplexity, Figure AI, Foul AI, Higgsfield AI and separately a leading frontier AI lab whose name we're not able to disclose just yet. Revenue, $4 billion of ARR is now contracted for our 2026 capacity. And 1 billion of that is operating today. This does not include revenue expected to ramp in 2027, such as the $700 million of ARR associated with our NVIDIA Cloud contract. Delivering, Horizon 1 was delivered to Microsoft this month, the first of four 50 megawatt deployments. With Horizon 2 through 4, targeted for the December quarter. And finally, funded. $6.5 billion of GPU financing now in the past three months. With prepayments, that's more than 100% of the associated GPU CapEx funded. And $2.8 billion of it needed no investment grade offtake and still priced in the single digits. So let me start with customers because everything else follows from them. Our 2026 capacity is largely sold out. So the questions we get now are all about 2027 and 2028. We're continuing to contract future capacity deliberately. Every contract opportunity gets weighed on three things. Firstly, Who and what does this counterparty add to the platform? The strategic merit, not just the revenue. Second, what are the economics? Price, prepayment, term, etc. And thirdly, what might it open up longer term for managed services and software? We've been saying this for a while now. Signing deals is not the bottleneck in this market. Bringing GPUs online is. We also don't need an investment grade offtake to fund GPUs anymore. So we're not chasing headline announcements. We're making long-term decisions about where we want this business to be. And when we'll sign, we'll tell you. We're in late stage discussions with a range of new customers over a significant portion of 2027 capacity and 2028 conversations are well underway too, both on customers and financing. Longer term, we want to keep building a deep, diversified base of customers across the AI ecosystem. All who have master service agreements with IREN. Every megawatt we build is scarce. Before every new cluster switches on, we want it in demand from both existing customers and new ones. So not dependent on any one customer, any one negotiation, or any one point in a pricing cycle. and here's who's on the platform today. So as I mentioned earlier, the headline is the new multi-year contract with a leading frontier AI lab. And to be clear, this is a new contract. It's separate from Prometheus, who we can now name as the unnamed AI developer from our July announcement. The most sophisticated buyers of AI infrastructure in the world keep choosing us. It also shows the strategy is working. We started concentrated because big customers with immediate demand with the fastest path to scale. As the platform's grown, we've deliberately broadened. Hyperscalers, enterprises, AI developers, now frontier labs across both training and inference. But honestly, the part we care about most is the third bullet point. existing customers keep coming back. Together AI and Fireworks AI have both renewed and expanded. New logos are proving demand, whereas renewals continue to prove ongoing delivery and ongoing execution. Once we've deployed with a customer, we grow with them across sites, GPU generations and service levels. And in terms of who is signing and growing with us, Prometheus and FIGA are building products for the physical world, robotics, real world automation, and they're contracting our compute to do it. AI is moving well beyond chat. This is the thing we keep telling people. You cannot size this market off today's usage. And that is exactly why the market keeps getting caught structurally short of compute. Now let's move on to pricing. So pricing has moved a lot. Three-year contract pricing is up about 125% since November. Five-year is up about 70. Recent three-year contracts are pricing in excess of $20 million per megawatt of IT load, paying back the compute investment in around two years, while active discussions are now at around $25 million per megawatt. Recent customer prepayments are funding 45% to 55% of the GPU capex. What's behind that? The market's tightened, no question, but it's also who we're signing, how the deals are structured, and what we attach on top in managed services, which Mirantis keeps expanding. Shorter duration and on-demand sit above that as further upside in due course. Revenue per megawatt is shorthand, by the way. We look at the whole return. Price, Term, Pre-payment, Utilisation, Customer Quality and Expansion Opportunity. And to be clear about what we're not doing, we're not sitting on capacity to time a spot price. We allocate capacity to build the customer base and the platform as we see fit. The pricing follows that. Okay, so from customers to what we're building. The targets, roughly 300 megawatts of IT load delivered in 2026 and another half a gigawatt in 2027. That'll take the platform to around 1.2 gigawatts in 2027 of gross capacity. And we're continuing to build across Texas, British Columbia, Oklahoma, South Australia and Spain. and right now today there are more than 4,000 people mobilized across our active sites. The best example of that today is Horizon One. So as we announced earlier, Horizon One was delivered to Microsoft. First of four 50 megawatt liquid cooled deployments at Childress and it achieved NVIDIA exemplar cloud status on GB 300 NVL 72. which matters because it proves we can integrate and operate the full platform, hardware, networking, and software, not just build the shell. The delivery matters, but the template matters more. Every Horizon uses the same design, the same supply chain, the same site team, and each phase carries the lessons of the last. Horizon 2 is in the process of working towards commissioning. 3 and 4 are in late construction. So all three are targeting delivery in the December quarter. And that approach is running at every site. So quickly on 2026. At Childress, retrofit work and GPU installs are running in parallel on the air-cooled calls. At McKenzie, GPUs are being racked across the first two buildings. At Prince George, the air-cooled fleet is now fully commissioned. and liquid cooled installation is underway. All of that remaining capacity is targeted for the December quarter. In 2027, Sweetwater 1 is in full swing now. First building is going up. The primary substation is progressing. At Childress, Horizons 5 and 6, Civils are now moving and underway. and another 250 megawatts of air cooled conversion progressing. And it's also worth mentioning in terms of canal flats, we've now decided to convert all of that to liquid cooling for GB300s. And that will deliver more value from power and a site we already own. But beyond that, the pipeline steps up again. Sweetwater II and Kia are in the US, Bundine in South Australia, and Badajoz in Spain, roughly 300 megawatts and the flagship of the Nostrum portfolio of sites we closed during the quarter. All up more than five gigawatts announced with a multi-gigawatt development pipeline behind it, including more Texas power where a tighter interconnection process should favour real and well-capitalised projects. And then a quick word on design because it answers a question we're starting to get a lot. So the bare case we hear on this industry is that AI data centres get rebuilt in 10 years. We've spent this year making sure that ours don't. Sweetwater One is becoming the reference design for Sweetwater Two, Kiowa, Bundy, and what follows after those. Common layouts, common equipment, more modularisation and prefab. Each project is inheriting the last one's lessons instead of starting from zero. and the design is built for successive GPU generations, evolving cooling, including 800 volt DC, all of which has been developed in collaboration with Nvidia. So we know compute changes faster than buildings and ours have been designed to adapt to that. But we're also getting more out of what we already own. Our existing sites have spare power beyond current deployment plans. That headroom can support more GPUs and more revenue without the need for any new grid capacity. And new grid capacity is the scarcest input in this entire industry. So revenue that doesn't need it is about the highest quality growth there is. First up, new liquid cooled installs at McKenzie, Canal Flats and Prince George in 2027. And over time, tools like NVIDIA Max LPS, which smooths GPU power draw, let us safely run more compute inside the same electrical envelope. But none of this happens without people. Our head count nearly tripled in FY26, including hundreds of colleagues who joined through Mirantis and Nostrum, and we expect similar growth again in FY27. Five C-suite appointments across development and other leading data centre operators. So building our organisation ahead of the revenue is obviously deliberate. It costs money before it makes money, but this is where we're going. One last piece before I pass off to Anthony is how we're funding this growth. GPU financing first, because now the model is proven at both ends of the credit spectrum. For the Microsoft contract, we raised $3.6 billion of investment grade GPU financing at a weighted average of about 6%. With customer prepayments, that funded about 96% of the associated GPU capex. Now, here's where it gets really interesting. For non-investment grade deployments, so the rest of the AI ecosystem, we just closed $2.8 billion of equipment financing. That includes $2.4 billion at a 9% fixed rate for McKinsey, led by Blue Hour and funds managed by PIMCO. A delayed draw term loan alongside senior secured notes funding 90% of that GPU capex. add prepayments of 45 to 55% on recent deals and total funding well exceeds the cost of the underlying GPUs, which is good because that excess is now helping to support data center CapEx on those same and future deployments. And today, talking about data center CapEx, we have deliberately kept 100% of our data centers unencumbered. which is a growing asset base we can finance when the timing is right. So on that note, Anthony will take you how that funds the plan and the results. Thank you, Anthony.