IPH (IPH) H1 2026 earnings summary

Executive summary

• Net profit after tax rose 10.5% to $41.2m, with underlying EBITDA up 6.6% to $107.1m, driven by strong growth in Canada and Asia, while ANZ faced headwinds from declining US PCT filings and market challenges.

• Revenue increased 6.5% to $363.9m, supported by organic growth and the Bereskin & Parr acquisition in Canada.

• 58% of underlying EBITDA now generated outside ANZ, reflecting enhanced global scale and diversification.

• Operational efficiencies, cost discipline, and AI-driven workflow automation contributed to improved margins and reduced corporate costs.

• Interim dividend increased 11.8% to 19.0c per share, 20% franked, with a payout ratio of 81% of cash-adjusted NPAT.

Financial highlights

• Revenue rose 6.5% to $363.9m, with underlying EBITDA up 6.6% to $107.1m and statutory NPAT up 10.5% to $41.2m.

• Underlying NPATA increased 2.6% to $62.6m; underlying basic EPSA up 3.9% to 24.0c.

• Cash conversion ratio at 101%, with free cash flow up 32% for the half.

• Net debt reduced to $339.3m, leverage ratio improved to 1.8x, within target range.

• Interim dividend of 19.0c per share declared, with $50.9m in dividends paid during the period.

Outlook and guidance

• Focus on organic growth, operational efficiencies, and leveraging AI across all segments, with further technology investment planned.

• Expecting improvement in CIPO workflow in Canada during calendar year 2026, though timing remains uncertain.

• Targeting increased filings in Asia and refocused business development in ANZ towards Western Europe, Japan, South Korea, and China.

• Continued capital management flexibility, including a new on-market buyback program commencing March 2026.