IPH (IPH) H1 2025 earnings summary

Executive summary

• Delivered strong HY25 results with underlying EBITDA up 11% to $100.5m and underlying NPAT up 20% to $61.0m, despite challenging market conditions and disruptions in Canada.

• Revenue rose 24.9% year-over-year to $341.6m, with net profit after tax up 77.6% to $37.3m, driven by acquisitions and growth in core markets.

• Integration of Bereskin & Parr in Canada is ahead of plan, with cost synergies above initial estimates.

• Organic growth achieved in Australia and New Zealand for the third consecutive period, and Asian patent filings increased by over 10%.

• Interim dividend increased 6% to 17 cents per share (20% franked), with a dividend reinvestment plan in operation and on-market share buyback commenced.

Financial highlights

• Underlying EBITDA up 11% to $100.5m and statutory EBITDA up 27% to $95.0m; underlying NPAT up 20% to $61.0m.

• Revenue was $344.3m, up 4% year-over-year on a like-for-like basis.

• Underlying diluted EPS up 7% to 22.8 cents; interim dividend up 6% to 17 cents per share, 20% franked.

• Net profit after tax up 77.6% to $37.3m, driven by reduction in non-underlying items and lower effective tax rate.

• Cash conversion ratio at 100%, with free cash flow of $54.7m and net debt reduced by 16% to $300m.

Outlook and guidance

• Expect continued organic growth in ANZ and further recovery in Asia, leveraging tailored client programs and enhanced marketing.

• 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.

• Further details on operational efficiencies and margin improvements to be provided in the full-year results.