IPD Group (IPG) H1 2025 earnings summary

Executive summary

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

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

• Strategic acquisitions (EX Engineering, CMI Electrical/Operations) contributed to growth, diversification, and successful integration.

• Strong order backlog of $92.7 million, up 49%, and operating free cash flow of $25.3 million with a 107.6% conversion rate.

• Interim dividend of 6.4 cents per share declared, up 39.1% year-over-year, with a 50% payout ratio.

Financial highlights

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

• Net profit after tax was $13.3 million, up 40% year-over-year; EPS increased 19.4% to 12.9 cents.

• Gross profit margin at 35.2%, down 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 as of 31 December 2024, with further $10 million core debt repaid post-period.

Outlook and guidance

• Focus on growth from renewables, data centres, EV charging, and public transport electrification.

• Management committed to executing strategic priorities and delivering sustainable growth despite challenging end markets.

• Strong order backlog underwrites second-half performance, with backlog representing 3-4 months of work.

• Price increase of 3-4% planned for March, with partial impact expected in the second half and more in the new financial year.

• Market conditions expected to stabilize or improve over the next 6-12 months.