IPH (IPH) H2 2025 earnings summary

Executive summary

• Revenue grew 16.5% to AUD 710.3 million, driven by Canadian acquisitions (notably Bereskin & Parr), organic growth in ANZ and Asia, and strong Asian filings despite market headwinds.

• Underlying EBITDA rose 6% to AUD 207.2 million; underlying NPAT-A/NPATA increased 7.3% to AUD 120.6 million; statutory NPAT up 13.2% to AUD 68.8 million.

• Dividend per share increased 4% to AUD 0.365 (36.5cps), reflecting strong cash generation and shareholder returns.

• Integration of Bereskin & Parr completed, with cost synergies above target and full-year benefit expected in FY26.

• Strategic focus shifting from acquisitions to organic growth, operational efficiency, and technology investment, including AI adoption.

Financial highlights

• Revenue up 16.5% year-over-year to AUD 710.3 million, primarily from Canadian acquisitions and organic growth.

• Underlying EBITDA up 6% to AUD 207.2 million; underlying NPAT-A/NPATA up 7.3% to AUD 120.6 million; statutory NPAT up 13.2% to AUD 68.8 million.

• Underlying basic EPS-A declined 2.3% due to a 9.8% increase in shares on issue after a capital raise.

• Gross operating cash flow to EBITDA conversion at 103%; free cash flow up 4%.

• Dividend payout ratio at 86% of cash adjusted NPAT/NPATA.

Outlook and guidance

• Expecting further growth in FY26, with full-year benefit from Bereskin & Parr and cost synergies of AUD 8–10 million annualized.

• Recovery in Canadian patent workflow anticipated as CIPO backlog clears, with delayed revenue expected to flow through FY26 and into FY27.

• Focus on organic growth in ANZ, Asia, and targeted expansion in Western Europe, Japan, South Korea, and China.

• Group-wide transformation and technology investments, including AI, to drive efficiency and commercial outcomes.

• Medium-term fundamentals for IP services remain supportive for growth despite short-term disruptions.