IPH Limited (ASX:IPH) Reports FY26 Profit Growth and Updates Dividend Policy

Aditi Sarkar

26 October 2026 03:01 PM AEDT

IPH Limited (ASX:IPH) Reports FY26 Profit Growth and Updates Dividend Policy

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Highlights

IPH Limited (ASX:IPH) reported FY26 revenue of AUD 712.8mn, increasing 0.4% YoY.
Statutory net profit rose 16.9% YoY to AUD 80.4mn, while underlying EBITDA fell 0.6% YoY.
The FY26 final dividend was 19.5 cents per share, 30% franked; total FY26 dividends reached 38.5 cents.
Management adopted a FY27 dividend payout policy range of 70%–90% of statutory EPSA.

IPH Limited (ASX:IPH) provides patent, trade mark, design and related intellectual property services through member firms across Australia, New Zealand, Canada and Asia. As of 26 October 2026, its dividend profile includes a FY26 final dividend of 19.5 cents per share, 30% franked, taking total declared dividends for the year to 38.5 cents per share, up 5.5% YoY. The group’s latest annual results also show higher statutory profit and divergent operating trends across its regions.

Company Business and Geographic Operations

IPH Limited (ASX:IPH) supports businesses and institutions in protecting, maintaining and managing intellectual property rights. Its services cover filing and prosecution of patent and trade mark applications, registered designs, portfolio administration and related advisory work. The group operates through member firms including Griffith Hack, Spruson & Ferguson, AJ Park, Smart & Biggar and ROBIC. Its reporting segments comprise Australia and New Zealand (ANZ), Canada and Asia.

The company reported that 58% of FY26 underlying EBITDA before corporate costs was generated outside ANZ. Canada represented 44% of group revenue, ANZ 39% and Asia 17%, highlighting the effect of international filing flows and currency translation on consolidated results.

Recent Developments and Dividend Policy

In August 2026, IPH Limited (ASX:IPH) released its results for the financial year ended 30 June 2026. The company declared a 19.5-cent final dividend, unchanged from the FY25 final dividend, following an interim dividend of 19.0 cents. Total dividends increased from 36.5 cents in FY25 to 38.5 cents per share in FY26. The company also maintained a dividend reinvestment plan for its final dividend.

The board revised the dividend policy for FY27 to a payout range of 70%–90% of statutory earnings per share before amortisation (EPSA), replacing the previous approach based on 80%–90% of cash-adjusted net profit after tax. Tony O’Malley commenced as managing director and chief executive officer in July 2026, with priorities including operating efficiency, client connectivity, technology and data capabilities.

Financial Performance and Sector Context

IPH Limited (ASX:IPH) recorded FY26 revenue of AUD 712.8mn, up 0.4% YoY from AUD 710.3mn. Underlying EBITDA was AUD 205.9mn, down 0.6% YoY, while underlying NPATA rose 1.7% YoY to AUD 122.7mn. Statutory net profit after tax increased 16.9% YoY to AUD 80.4mn, partly reflecting lower non-underlying expenses and amortisation. Underlying basic EPSA reached 47.2 cents, up 4.2% YoY.

Currency movements affected reported performance: the Australian dollar appreciated on average against both the US and Canadian dollars. On a like-for-like constant-currency basis adjusted for acquisitions, underlying EBITDA increased 2.9% YoY. Canada recorded an 11.8% increase in like-for-like underlying EBITDA, while Asia recorded 2.6% like-for-like revenue growth but a 1.3% reduction in like-for-like underlying EBITDA.

ANZ continued to face reduced US-origin patent application activity. Its FY26 like-for-like revenue declined 4.2% YoY and underlying EBITDA fell 7.2% YoY. Group operating gross cash flow conversion represented 110% of underlying EBITDA. Net debt at 30 June 2026 was AUD 316.5mn, compared with AUD 339.3mn at 31 December 2025, and leverage was 1.8 times.

Risks to Consider

IPH Limited (ASX:IPH) remains exposed to variation in patent and trade mark filing volumes across jurisdictions. Changes to filing systems, client activity and competition can affect workloads and regional margins. The company also faces foreign-exchange exposure from international operations, cost inflation in Asian markets, integration requirements and technology expenditure. Debt servicing and working-capital management remain relevant as the group invests in its operating platform.

What to Watch Next

The next reporting periods will show whether the Canadian earnings improvement continues, whether ANZ filing volumes stabilise and how Asian profitability responds to cost pressure. The execution of the FY27 payout policy, operating cost programme and technology initiatives will also be relevant. The company has identified greater use of artificial intelligence, workflow automation and data as areas for operational development.

Key Insights

IPH Limited (ASX:IPH) ended FY26 with increased statutory earnings and total dividends despite a marginal decline in reported underlying EBITDA. Canadian growth and corporate cost savings partly offset ANZ weakness and currency effects. Future reporting will clarify how the new dividend policy aligns with statutory earnings, regional performance, cash conversion and leverage.

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