IPH (IPH) H1 2025 earnings summary

Executive summary

• Underlying NPAT rose 20% to $61.0m for HY25, with statutory NPAT up 78% to $37.3m, driven by organic growth in Australia/NZ, a 10% recovery in Asian patent filings, and strong Canadian expansion following the Bereskin & Parr acquisition.

• Underlying EBITDA reached $100.5m, up 11% year-over-year, with revenue rising to $344.3m, up 25.5% year-over-year.

• Interim dividend increased 6% to 17.0 cents per share (20% franked), with a dividend reinvestment plan and on-market share buyback commenced.

• Integration of Bereskin & Parr in Canada is ahead of plan, delivering cost synergies above target.

• Canadian operations faced CIPO system disruptions, delaying revenue, but trade marks revenue grew 27%.

Financial highlights

• Statutory EBITDA increased 27% to $95.0m; underlying EBITDA up 11% to $100.5m.

• Underlying diluted EPS up 7% to 22.8c; statutory diluted EPS at 13.9c, up from 8.8c.

• Net profit after tax up 78% to $37.3m, with underlying NPAT at $61.0m, up 20%.

• Cash conversion ratio at 100%, with free cash flow of $54.7m.

• Net tangible assets per share improved to $(0.58) from $(0.95) at June 2024.

Outlook and guidance

• Expect continued organic growth in ANZ and further recovery in Asia, with positive momentum from increased filings and translation revenue.

• Anticipate margin uplift in Canada as CIPO system issues resolve and cost synergies from Bereskin & Parr integration are realized.

• Transformation plan to drive efficiency, automation, and AI adoption across the group.

• Management expects franking credits on dividends to remain in the 15–20% range due to increased offshore earnings.

• Focus remains on organic growth, integration of acquisitions, and shareholder returns.