Axon's new proposed headquarters, and mixed-use project, are joining other major construction projects in north Scottsdale exit intersections off of the popular Loop 101 highway.
The new proposed Axon project will include a new headquarters building, 2,500 apartments, and a potential hotel at the southeast corner of Loop 101 and Hayden Road in north Scottsdale.
The Scottsdale City Planning Commission file #3-GP-2023 and file#13-ZN-2020#2 show that the $15 billion market cap company Axon Enterprises (NASDAQ: AXON) is moving to build out its 74-acre land purchase at this strategic corner.
Axon's Strong Financial Shape
Axon Enterprises is certainly in strong enough financial shape to be able to afford this project.
The public safety company company, which makes the popular Taser guns, recently reported huge Q2 earnings gains. The company's quarterly revenue rose 31% year-over-year to $374.6 million. Moreover, its non-GAAP net income was $84.5 million, up 165% from a year ago, and 30.% higher than the prior quarter.
In addition, its cash flow was strong with adjusted EBITDA (earnings before interest, taxes and depreciation) of $82.4 million, up 65% from a year-ago adj. EBITDA of $49.8 million.
This was also 26.6% over its prior quarter figures, indicating that cash flow is surging. Moreover, its free cash flow was $34 million, which adds to its cash balance.
In fact, its cash and marketable securities balance grew to $1.133 billion, although this was partly due to $690 million in convertible notes. Nevertheless, Axon's net cash balance is still formidable at $395 million. That was $15 million higher than the prior quarter.
That shows that it has the financial strength to build out this project. This does not include any project debt that the company could employ to finance the buildout. So far Axon has not said how much the project would cost.
Other Projects at This Intersection
Several other companies have also announced major projects in North Scottsdale at this intersection as well as the nearby Scottsdale Road intersection off of Loop 101.
For example, in March 2023 Banner Health announced it proposed to build a major hospital at the southwest corner of Hayden Road and Loop 101. The proposed project would cost $400 million.
We discussed this development in our Newsbreak article, "Scottsdale Gets Another Hospital," on March 21.
This would be directly across the street on Hayden Road (directly south of Loop 101) from the proposed Axon mixed-use project.
The project will be called Banner Scottsdale Medical Center, and will include the following:
- a full-service, destination hospital with a focus on cardiovascular, orthopedics, cancer, and neuroscience programs;
- an adjacent medical office building, and
- a cancer center.
- The four-story, 384,000-sq. ft. Banner Scottsdale Medical Center is expected to open in 2026 with 106 licensed patient beds and 20 observation beds.
Moreover, at the south corner of Loop 101 and Scottsdale Road, a new huge luxury apartment complex called Optima McDowell Mountain Village will be built costing $1 billion.
We discussed this in our NewsBreak article on Dec. 21, 2022: "A Group In Scottsdale Will Make the Largest Private Rainwater Harvesting Site in the U.S. in its New Luxury Condos."
It calls itself the largest rain harvesting project in the U.S. and will provide Scottsdale with 2,750 acre-feet of water annually.
That project is just on the other side of the Banner Hospital, which is also close to the proposed Axon enlarged campus.
As a result, North Scottsdale, at two major intersections off of Loop 101 and the Hayden Road and Scottsdale Road exits, will be bustling with construction activity over the next several years.
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Mark R. Hake, CFA, writes articles on national and local news, stocks, and market events at Kiplinger.com, Barchart.com, Medium.com, and Newsbreak.com as well as TalkMarkets.
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