IPH (IPH) H2 2025 earnings summary

Executive summary

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

• Underlying EBITDA rose 6% to AUD 207.2 million; underlying NPAT-A 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, with strong cash generation and a payout ratio of 86% of cash adjusted NPAT.

• Integration of Bereskin & Parr completed, delivering cost synergies above target and full-year contribution expected in FY 2026.

• Operational efficiencies, restructuring, and technology investment, including AI adoption, are set to deliver AUD 8–10 million in annualized cost savings from FY 2026.

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 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%.

• Employee benefits expenses rose 20.9% due to acquisitions and inflation; headcount increased to 1,815.

Outlook and guidance

• Expecting further growth in FY 2026, with full-year benefit from Bereskin & Parr and cost synergies.

• Recovery in Canadian patent workflow anticipated as CIPO backlog clears, with delayed revenue expected to flow through FY 2026 and into FY 2027.

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

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

• Projected annualized cost savings of AUD 8–10 million from FY 2026.