Key Highlights

  • IPH Limited (ASX:IPH) reported FY26 Revenue of $712.8 million, up 0.4% from $710.3 million, while underlying EBITDA declined 0.6% to $205.9 million.
  • Statutory NPAT increased 16.9% to $80.4 million, compared with $68.8 million in FY25, while underlying NPATA rose 1.7% to $122.7 million.
  • FY26 total dividends increased 5.5% to 38.5 cents per share, although the final Dividend remained unchanged at 19.5 cents per share.
  • IPH shares were trading at $3.87 on 20 August 2026, down 8.29%, or 35 cents, during the trading session.

IPH Limited (ASX:IPH) reported FY26 revenue of $712.8 million, representing a 0.4% increase from $710.3 million a year earlier. The company's shares were trading at $3.87 on 20 August 2026, down 35 cents, or 8.29%, at 11:27 am. Revenue growth was attributed to additional contribution from the Bereskin & Parr Acquisition in Canada and organic growth in Canada, while the ANZ Business recorded a decline. Asia reported a flat revenue year on the group's reported basis.

Underlying EBITDA decreased 0.6% to $205.9 million from $207.2 million, with the Margin declining to 28.9% from 29.2%. IPH attributed the movement primarily to foreign exchange conditions, including an appreciation in the average Australian dollar against both the US dollar and Canadian dollar during FY26.

On a like-for-like basis, which adjusts for acquisitions and currency movements, group revenue increased 1.6%, while underlying EBITDA rose 2.9%. The company also reported $5.1 million in corporate cost savings from its cost reduction program and ongoing cost controls.

Statutory NPAT Rises as One-Off Costs Decline

Statutory net profit after tax increased 16.9% to $80.4 million from $68.8 million in FY25. Basic Earnings Per Share rose 19.8% to 30.9 cents from 25.8 cents.

Underlying NPATA increased 1.7% to $122.7 million, while underlying basic EPSA rose 4.2% to 47.2 cents from 45.3 cents. The company reported significantly lower non-underlying expenses during the year, with these costs falling to $6.6 million after tax from $13.2 million previously.

The FY26 non-underlying expenses primarily related to business transformation, IT software implementation and cyber and information security upgrades. Lower Amortisation expenses also contributed to the increase in statutory NPAT.

Canada Growth Offsets ANZ Pressure

Canada remained a key contributor to the group's operating performance. Like-for-like earnings in the Canadian segment increased 11.8%, supported by organic revenue growth, acquisition synergies and cost discipline.

Asia returned to revenue growth on a like-for-like basis, with revenue increasing 2.6%. However, underlying EBITDA declined 1.3%, reflecting inflationary cost impacts. Singapore Patent filings, excluding self-filed provisional applications, declined 0.6%, while IPH Group filings declined 12.6%.

ANZ continued to face weaker conditions. Like-for-like revenue declined 4.2%, while underlying EBITDA fell 7.2%. This represented an improvement from the first half, when revenue had declined 6.1% and underlying EBITDA was down 10.6%.

Cash Generation and Dividends

IPH reported an underlying EBITDA-to-operating gross cashflow conversion ratio of 110%. Net Debt stood at $316.5 million at 30 June 2026, down from $339.3 million at 31 December 2025. The group's Leverage Ratio was 1.8 times, unchanged from December.

The company declared a final dividend of 19.5 cents per share, unchanged from FY25. This brought total FY26 dividends to 38.5 cents per share, up 5.5% from 36.5 cents in the previous year. The final dividend is 30% franked, with a Record Date of 28 August 2026 and scheduled payment on 22 September 2026.

IPH also repurchased 5.4 million shares for $18.7 million by 30 June 2026 under its on-market buy-back program.

Conclusion

IPH's FY26 results show modest reported revenue growth alongside a 0.6% decline in underlying EBITDA, while statutory NPAT increased 16.9% and underlying NPATA rose 1.7%. Canada provided growth, while weaker ANZ conditions continued to weigh on group performance. Total dividends increased 5.5%, net debt declined during the second half, and the company maintained a 1.8-times leverage ratio. The FY26 figures also mark the beginning of Tony O'Malley's tenure as CEO, with the company outlining priorities around growth, operating efficiency, working capital, cost discipline, AI and data capabilities.