IPD Group (IPG) H1 2025 earnings summary

Executive summary

• Achieved record first-half FY25 revenue of AUD 176.9 million, up 46.6% year-over-year, exceeding guidance and driven by strong core business and strategic acquisitions.

• EBITDA rose 46.6% to AUD 23.6 million; EBIT up 47.4% to AUD 20.2 million; NPAT up 40% to AUD 13.3 million; EPS increased 19.4% to AUD 0.129.

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

• Interim dividend of AUD 0.064 per share declared, up 39.1% year-over-year, totaling AUD 6.6 million.

• Growth and diversification supported by successful integration of EX Engineering and CMI Electrical, with expansion into new markets.

Financial highlights

• Revenue reached AUD 176.9 million, up from AUD 120.7 million; EBITDA rose 46.6% to AUD 23.6 million; EBIT up 47.4% to AUD 20.2 million.

• Net profit after tax was AUD 13.3 million, up 40% year-over-year; EPS up 19.4% to AUD 0.129.

• Gross profit margin declined to 35.2% due to lower-margin acquisitions; operating expenses as a percentage of revenue decreased by 4.9%.

• Net debt reduced to AUD 2.2 million from AUD 8.8 million at June 30, with further AUD 10 million core debt repaid post-half-year.

• Dividend payout ratio at 50%; net working capital at AUD 76.6 million.

Outlook and guidance

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

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

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

• Management expects market conditions to stabilize and potentially improve over the next 6-12 months, with continued execution of strategic priorities.