IPD Group (IPG) H2 2026 earnings summary

Executive summary

• Record revenue of AUD 414.3 million (up 16.8% YoY), exceeding guidance, with underlying EBITDA up 19.4% to AUD 55.4 million and margin expansion to 13.4%.

• EPS increased 17.4% to AUD 0.297 per share; net profit after tax rose 17.9% to AUD 30.9 million.

• Strong organic and inorganic growth, with significant contributions from recent acquisitions, especially Platinum Cables.

• Data center revenue surged 27% to AUD 71.5 million, reflecting robust demand from AI and cloud infrastructure.

• Growth was broad-based across all major segments, including EX Engineering (+35%) and CMI (+11%).

Financial highlights

• Operating free cash flow was AUD 46.8 million, with a cash conversion rate of 84.4%.

• Net debt reduced to AUD 16.4 million from AUD 24.4 million at year-end, with leverage at ~0.3x Net Debt/Underlying EBITDA.

• Gross margin at 33.4%, with sequential improvement in 2H26 despite a more complex project mix.

• Operating expenses as a percentage of revenue improved by 140bps to 20.0%.

• Fully franked dividends totaled AUD 0.147 per share, up 16.7%, with a payout ratio of 50%.

Outlook and guidance

• Entering FY27 with strong momentum, diversified exposure, and positive structural tailwinds.

• Continued focus on organic growth, strategic acquisitions, and operational efficiency.

• Management expects further growth in mining, renewables, and data center markets, especially in Western Australia.

• Addelec business expected to return to profitability following cost base reduction and restructuring.

• Board to provide further updates at the AGM in November.