DXN (ASX:DXN), a specialist in prefabricated modular data centres, has released its half-year results for the period ended Dec. 31, 2025, highlighting a period of significant strategic transition despite a sharp decline in top-line revenue.
The company reported revenue of $2.7 million, a 65% decrease attributed primarily to customer-driven project deferrals.
However, DXN maintains a robust outlook with a total backlog of $14.5 million, including $10.1 million in modular orders and a pipeline of 80 identified projects.
A major milestone for the half was the commencement of the company's first recurring revenue from its Data Centre as a Service model, marking the successful launch of a capital-light revenue stream.
The modular division contributed approximately 50% of the period's revenue, driven by key progress on projects for Globalstar and APTelecom.
The company signed a memorandum of understanding and shareholder agreement with Super Sistem Indonesia to form a joint venture.
The partnership targets Indonesia's digital infrastructure growth, with a potential revenue opportunity of US$7 million over the next three years.
A key component of this JV is the establishment of a localised manufacturing facility in Jakarta, designed to bypass import tariffs and comply with local data sovereignty regulations.
DXN expects liquidity to strengthen as milestone payments from its $1.8 million APTelecom and $1.4 million Edge Data Centre contracts are received through June.