Core Insights - DXC Technology has launched a new AI Center of Competence in Warsaw, Poland, expanding its global network of AI centers [1][2] - The center employs 500 data and AI experts who assist companies in leveraging AI for innovation, operational efficiency, and cost reduction [2][3] - Ferrovial, a global infrastructure company, is collaborating with DXC to develop the AI Workbench platform, enhancing its operational management and safety standards [2][3] Company Strategy - The AI Center of Competence focuses on three strategic pillars: resilient cloud infrastructure, intuitive AI interfaces, and a centralized hub for Research & Development [3] - The center aims to create a global ecosystem for continuous learning, collaboration, and innovation, ensuring that AI solutions are practical and impactful [4] - DXC's global AI network includes centers in Bulgaria, India, the Philippines, and Spain, reinforcing its leadership in enterprise-scale AI and data modernization [4] Customer Impact - Ferrovial is utilizing the AI Workbench to optimize decision-making and improve safety through real-time operational management [3] - The collaboration with DXC allows Ferrovial to leverage over 30 intelligent agents for swift responses to changing conditions and regulations [3] - DXC's solutions empower customers to integrate responsible AI into their operations rapidly, driving efficiency and growth across various industries [4]

Group 1 - DXC Technology Company (NYSE: DXC) is perceived as a stock that feels unfinished, indicating potential for growth or improvement [1] - The author emphasizes a focus on companies with strong fundamentals and real potential, particularly in the tech, infrastructure, and internet services sectors [1] - The article aims to share investment ideas and foster connections among investors who prioritize long-term returns over short-term fluctuations [1]

Core Insights - DXC Technology has successfully implemented a unified Oracle FusionCloud ERP and EPM system for Meridian Energy, enhancing operational efficiency and financial reporting without disruption [1][2][3] Group 1: Implementation and Objectives - The primary goal of the project was to transition Meridian Energy from an outdated financial system to a modern solution that optimizes business processes and provides a seamless experience [2] - The unified Oracle SaaS ERP solution has improved project visibility for 200 managers and standardized procurement procedures, enforcing a "no purchase order, no payment" policy [2][3] - Financial reports and briefing books for executives and the board are now generated within five days, significantly faster than previous timelines [2] Group 2: Company Background and Commitment - Meridian Energy is New Zealand's largest renewable energy generator and retailer, responsible for one-third of the country's electricity generation through 100% renewable sources [3] - The partnership with DXC Technology aims to support Meridian Energy's vision of achieving a net-zero carbon future while enhancing productivity and driving new revenue opportunities [3][4]

Core Insights - DXC Technology has announced collaborations with startups Acumino, CAMB.AI, and GreenMatterAI to develop AI solutions for the automotive and manufacturing sectors [1][2] - The partnerships are part of DXC's ongoing collaboration with STARTUP AUTOBAHN, which connects early-stage innovators with large enterprises [1][3] Group 1: AI Innovations in Manufacturing - Acumino is working with DXC to implement general robotic intelligence for scalable automation in complex production environments, addressing the limitations of traditional robotic solutions [4] - Acumino's collaboration with Schaeffler has led to a proof-of-concept study that enhances packaging automation through AI-powered training systems, enabling robots to learn tasks with human-like dexterity [5][6] - GreenMatterAI is partnering with DXC to improve automatic weld inspection using synthetic data generation, which enhances defect detection accuracy and reduces rework costs by 25%, potentially saving manufacturers millions annually [9][10] Group 2: AI Solutions in Automotive Mobility - CAMB.AI is collaborating with DXC to create an AI-powered real-time speech translation solution aimed at improving traffic interpretation for international drivers [7][8] - The solution enhances driving experiences by providing live conversation translation, multilingual street sign recognition, and traffic rule explanations within the vehicle's digital cockpit [8] Group 3: Strategic Partnerships and Impact - DXC has selected over 100 emerging technology companies and launched over 25 pilots and customer projects through its partnership with STARTUP AUTOBAHN, demonstrating a commitment to transforming innovation into real-world impact [2][11] - The collaboration with startups reflects DXC's open innovation strategy, which aims to accelerate AI adoption and deliver tangible results in manufacturing and automotive sectors [11]

Core Insights - DXC Technology has been recognized as a Leader in the Everest Group's "Custom Application Development Services PEAK Matrix® Assessment 2025," highlighting its strengths in building scalable and secure custom applications tailored to business needs [1][2][4] Group 1: Company Strengths - DXC leverages GenAI platforms to enhance efficiency and productivity, providing software engineers with secure AI-powered assets and services that include coding assistants to accelerate software development and reduce operational costs [2][4] - The company manages over 20,000 applications globally and has transformed over 2 billion lines of code, helping enterprises modernize and accelerate critical applications, resulting in a 25% acceleration in application development and 40% faster application testing for customers [3][4] Group 2: Market Position - The PEAK Matrix® assessment evaluates 31 leading technology providers based on their vision, strategy, ecosystem investments, and ability to maintain growth momentum, with DXC positioned as a Leader due to its strong in-house capabilities and consistent delivery performance [4][5] - DXC serves 2,000 customers across more than 70 countries in various industries, including transportation, retail, telecommunications, and energy, emphasizing its role as a trusted partner in custom application services [3][5]

Core Insights - DXC Technology and Boomi have formed a strategic partnership aimed at redefining enterprise automation and integration through AI, focusing on application modernization and the adoption of agentic systems at scale [1][3][9] Group 1: Partnership Objectives - The partnership addresses the challenges enterprises face with disconnected systems and technical debt, aiming to accelerate transformations while ensuring security and compliance [3] - The collaboration emphasizes the importance of agentic transformation as a necessity for enterprises, providing a pathway to modernization and long-term AI readiness [3][4] Group 2: Key Focus Areas - Application Modernization: DXC will provide cloud-native integration solutions to help enterprises replace outdated middleware, facilitating faster transformation through co-created solutions with partners [4] - AI-Driven Migration and Data Readiness: The integration of Boomi's AI-powered automation with DXC's engineering capabilities will enhance operational efficiency and decision-making across critical systems [5] - Agentic Transformation: DXC will ensure that Boomi's Agentstudio operates securely and intelligently across essential systems, orchestrating AI agents at scale [6] Group 3: Center of Excellence - A dedicated Boomi Center of Excellence (COE) will be established within DXC to serve as an innovation hub, offering reusable assets and proven implementation patterns to ensure a high-quality modernization experience for customers [8]

Group 1 - DXC Technology is supporting the digital transformation of Northeast Grocery, leading to over $40 million in savings over five years [1][3] - The collaboration aims to create operational efficiencies by consolidating IT infrastructures and optimizing operations, including the integration of generative AI [3][4] - Northeast Grocery operates nearly 300 stores and employs over 30,000 associates, ranking No. 46 on Progressive Grocer's 2025 list of top food retailers in North America [8] Group 2 - The modernization efforts include updating the mainframe system to a zLinux environment, increasing compute capacity and enabling future growth [4][5] - DXC's comprehensive support encompasses software engineering, IT operations managed services, and workplace collaboration [4][5] - The partnership focuses on maximizing technology investments, enhancing customer experience, and preparing for next-generation technologies [5][6]

Financial Data and Key Metrics Changes - The company delivered FFO and DPS of 20.7¢ per security, slightly above guidance of 20.6¢, with like-for-like income growth of 2.9% and occupancy reaching 99.9% [4][7][8] - Gearing stands at 29.4%, positioned at the lower end of the target range, expected to increase with capital deployment into growth opportunities [5][9] - NTA per security grew by 8¢ or 2.2% to $3.64, supported by underlying rental growth and cap rate compression [8][10] Business Line Data and Key Metrics Changes - The portfolio consists of over 90 assets valued at over $700 million, with a significant focus on metro and highway locations [2][3] - The company executed $38.8 million in divestments in the first half, enhancing portfolio quality and providing balance sheet capacity for future growth [4][12] Market Data and Key Metrics Changes - Property valuations increased by 2.3%, driven by rental growth and cap rate compression of eight basis points [10] - The portfolio capitalization rate is 6.32%, supported by strength in the underlying transaction market [10] Company Strategy and Development Direction - The company is focused on developing the Glasshouse Mountains project, which will enhance overall portfolio quality and increase strategic weighting to highway assets [11][12] - Future growth initiatives include progressing the redevelopment of Glasshouse Mountain southbound and securing other growth opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in momentum leading up to the federal election, but a strong increase in volumes post-election [11] - For FY '26, the company expects to deliver FFO and distributions per security of 20.9¢, reflecting year-on-year growth of 1.2% [13] Other Important Information - The company maintains a carbon-neutral position across controlled assets and engages with tenants to support their ESG objectives [6] - Environmental initiatives are integral to development plans, including EV charging bays and renewable energy sources [7] Q&A Session Summary Question: Can you walk us through the bridge in FY '26 regarding key moving parts and drivers? - Management indicated that like-for-like NOI growth will be similar, offset by a moderate increase in the cost of debt and dilution from asset sales [16] Question: Are you assuming any more capital deployment during the period? - Guidance does not assume capital deployment beyond the Glasshouse Mountains northbound project [17] Question: What is the focus on the pipeline for restocking? - The focus is on convenience retail hubs and highway sites with truck stop facilities, with ongoing discussions with developers [18][19] Question: How much are you willing to spend on new projects? - The company has a buying capacity of approximately $50 to $60 million while remaining within the target gearing range [20] Question: What are the key metrics for the development project? - Expected development IRR is around 20%, with a long-term hold IRR of about 10% [22]

Financial Performance - FY25 FFO was 20.7 cents per security, slightly above the guidance of 20.6 cents per security[17] - Distributions were also 20.7 cents per security[17] - Net property income was $46.445 million in FY25 compared to $48.350 million in FY24[74] - Portfolio valuation increased by $16.6 million, representing a 2.3% increase[41] - NTA per security increased by 2.2% from $3.56 to $3.64[32] Portfolio and Operations - Portfolio occupancy remained high at 99.9%[12] - The portfolio Weighted Average Lease Expiry (WALE) is 7.9 years[12] - Like-for-like income growth was +2.9%[17] - Average rent review achieved +3.1%[17] - $38.8 million of strategic divestments were executed[15] Capital Management - Gearing was 29.4%, at the lower end of the target range of 25-40%[14] - Average debt hedged was 72%[14] - Total borrowings amounted to $215.5 million[35] Future Outlook - FY26 FFO and distributions are expected to be 20.9 cents per security, reflecting growth of 1.2%[54]

Core Viewpoint - DXC Technology has officially opened a new office in Buenos Aires, Argentina, as part of its strategy to expand its presence in Latin America and enhance collaboration and innovation [1][2]. Company Expansion - The new office in Buenos Aires will serve as a strategic hub for DXC's Go-to-Market teams and leaders across various services including Business Process Services, Cloud, ITO, Applications, and Modern Workplace [2][5]. - This expansion follows recent office openings in Farnborough, UK, and Toronto, indicating a broader commitment to growth and customer success [5]. Commitment to Innovation - DXC's investment in Argentina reflects a long-term commitment to supporting customers and talent in the region, aligning with the country's role as an innovation hub in Latin America [4][5]. - The Buenos Aires office is designed to deepen partnerships with regional customers and accelerate project delivery, showcasing the company's focus on delivering excellence [2][5]. Market Context - According to IDC, Argentina's IT services market is expected to experience renewed momentum, highlighting the potential for digital transformation in the region [4].