Highlights

  • The indicated annual Yield is 9.62%, with a final AUD0.195 Dividend that was 30% franked.
  • FY26 statutory profit rose 16.9% to AUD80.4 million.
  • A revised FY27 payout range introduces a different Earnings reference for dividends.

IPH (ASX:IPH) provides intellectual property services through an international network of professional firms. Its indicated annual yield of 9.62% puts the dividend profile in focus following FY26 results that combined higher statutory profit with slightly lower underlying EBITDA. The listed final dividend was AUD0.195 per share, with 30% Australian franking.

A higher full year dividend precedes a policy change

IPH (ASX:IPH) traded ex-dividend on 27 August 2026, with the Record Date on 28 August and payment dated 22 September. The payment date has passed. The final amount was unchanged from the comparative final dividend, while total FY26 dividends increased 5.5% to AUD0.385 per share.

The company said its FY26 dividend was consistent with a policy of distributing 80%–90% of cash adjusted net profit. For FY27, the board adopted a range of 70%–90% of statutory EPSA. The change provides a different earnings basis and more flexibility within the payout range.

The indicated annual yield does not establish where a future dividend will sit within that framework. The 30% franking percentage also means the final dividend was only partly franked, rather than carrying credits on the entire cash amount.

Statutory profit improves while underlying trading is mixed

IPH (ASX:IPH) reported FY26 Revenue and other income excluding interest of AUD712.8 million, up 0.4%. Underlying EBITDA declined 0.6% to AUD205.9 million, with the stronger Australian dollar affecting translation against the US and Canadian dollars.

Statutory net profit increased 16.9% to AUD80.4 million, assisted by lower Amortisation expenses and fewer non-underlying costs. Underlying NPATA rose 1.7% to AUD122.7 million. These measures capture different adjustments and should not be treated as interchangeable earnings available for distribution.

On a like for like basis, adjusting for acquisitions and constant currency, underlying EBITDA increased 2.9%. Canada delivered an 11.8% improvement on that basis, while Australia and New Zealand declined 7.2% and Asia fell 1.3%. The group’s earnings mix therefore remained uneven.

Cash conversion and Leverage frame income capacity

IPH (ASX:IPH) reported an underlying EBITDA to operating gross Cash Flow conversion ratio of 110%. Net Debt was AUD316.5 million at 30 June 2026, down from AUD339.3 million at 31 December 2025. Its Facility defined Leverage Ratio was 1.8 times, within a maximum target of two times.

The company achieved AUD5.1 million of corporate cost savings during FY26 and continued investing in technology and information security. Cash generation must support these commitments alongside financing costs, acquisitions and Shareholder distributions.

Currency movements remain relevant because approximately 37% of group revenue is generated in US dollars without a matching US dollar cost base. Filing activity, client Demand and efficiency measures will also influence earnings under the revised dividend policy.

Key Insights

IPH (ASX:IPH) combines a high indicated yield with strong reported cash conversion and a changing payout framework. The rise in statutory profit does not erase the weaker reported EBITDA result. Dividend capacity depends on the earnings measure adopted, cash generation and Balance Sheet requirements.