IPD Group (IPG) H1 2025 earnings summary

Executive summary

• Achieved record half-year FY25 revenue of $176.9 million, up 46.6% year-over-year, exceeding the top end of guidance, with NPAT up 40.0% to $13.3 million and EPS up 19.4% to 12.9 cents per share.

• Growth was driven by strong performance in Data Centres, Water & Waste Water, and core business lines, offsetting commercial construction sector challenges.

• Significant contributions from recent acquisitions (EX Engineering and CMI Operations), with diversified business lines and a focus on sustainable electrical infrastructure.

• Maintained strong safety performance with a zero lost time injury frequency rate over the last 12 months.

• Declared fully franked interim dividend of 6.4 cents per share, up 39.1% year-over-year, and paid final FY24 dividend of 6.2 cents per share.

Financial highlights

• Revenue reached $176.9 million, up 46.6% year-over-year; EBITDA rose 46.6% to $23.6 million; EBIT increased 47.4% to $20.2 million.

• Net profit after tax was $13.3 million, up 40.0% year-over-year; EPS up 19.4% to 12.9 cents.

• Gross profit margin declined to 35.2% from 40.0% due to acquisition mix and complex orders.

• Operating free cash flow was $25.3 million, with a conversion rate of 107.6%.

• Net debt reduced to $2.2 million from $8.8 million at June 2024, with $28.9 million cash and $31.1 million borrowings.

Outlook and guidance

• Strong order backlog of $92.7 million, up 49% from the previous period, with larger, more complex projects and longer lead times.

• Continued growth expected in data centres, EV charging, renewables, and public transport electrification.

• Price increases of 3-4% planned for March, with partial impact in H2 and more in the next financial year.

• Management remains focused on executing strategic priorities and delivering sustainable growth despite market challenges.

• Market share currently at 10%, with significant room for expansion both organically and via acquisitions.