IPH (IPH) H1 2026 earnings summary

Executive summary

• Group underlying EBITDA rose 6.6% and statutory net profit increased 10.5% year-over-year, driven by strong growth in Canada and Asia, while ANZ faced headwinds from declining US PCT filings and market share.

• Canada delivered a strong turnaround, with organic growth and acquisition synergies, now accounting for over a third of group EBITDA.

• Nearly 60% of group earnings now come from outside ANZ, reflecting successful diversification and enhanced global scale.

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

• Continued focus on organic growth, technology investment, and leveraging AI for sustainable long-term performance.

Financial highlights

• Revenue increased 6.5% to AUD 363.9 million (or 6.0% to $365.1m), driven by the Bereskin & Parr acquisition and organic growth in Canada and Asia.

• Underlying EBITDA rose 6.6% to AUD 107.1 million; underlying NPATA up 2.6% to AUD 62.6 million.

• Statutory NPAT up 10.5% to AUD 41.2 million; statutory basic EPS up 12.1%.

• Interim dividend increased 11.8% to AUD 0.19 per share (20% franked), with a payout ratio of 81% of cash-adjusted NPAT.

• Free cash flow up 32% for the half; cash conversion at 100.7%.

Outlook and guidance

• Focused 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.

• Optimism for ANZ business recovery, with improved patent filing performance in Q2 and Q3.

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

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