IPD Group Limited (ASX:IPG): How Electrical Infrastructure Demand Shaped Its FY Results

Aditi Sarkar

28 October 2026 03:07 PM AEDT

IPD Group Limited (ASX:IPG): How Electrical Infrastructure Demand Shaped Its FY Results

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Highlights

FY26 revenue reached $414.3 million, increasing 16.8% for the year ended 30 June 2026.
Underlying EBITDA reached $55.4 million, while statutory net profit after tax was $30.5 million.
Data centre revenue increased 27% to $71.5 million during FY26.
Operating expenses declined as a percentage of revenue, while gross profit margin narrowed.
The FY26 fully franked dividend totalled 14.7 cents per share.

IPD Group Limited (ASX:IPG) supplies electrical products and provides engineering, installation and maintenance services across Australian industrial, commercial and infrastructure markets. Its businesses cover power distribution, cables, automation and specialist electrical equipment. For the year ended 30 June 2026, IPD Group reported higher revenue and earnings, with demand from data centres and other infrastructure customers contributing to its results. The FY26 figures also reflect the addition of Platinum Cables, making organic performance and margins important distinctions.

Revenue Growth Across Electrical Markets

In its 14 August 2026 financial results, IPD Group (ASX:IPG) reported revenue of $414.3 million, an increase of 16.8% on the previous corresponding period. Revenue excluding Platinum Cables was $389.2 million, representing organic growth of 9.7%. The distinction matters because acquisitions expand the reported revenue base without necessarily reflecting greater sales from the existing businesses.

Data centre revenue rose 27% to $71.5 million, supported by electrical infrastructure orders. Performance also varied by operating business. IPD division revenue increased 11%, CMI revenue increased 11% and EX Engineering revenue rose 35%. Addelec revenue declined 7% after excluding the Kingsgrove Bus Depot project. These movements show that the group’s growth was not uniform across its operations.

Earnings, Margins and Cash Generation

IPD Group (ASX:IPG) reported underlying EBITDA of $55.4 million, up 19.4%, and underlying EBIT of $47.2 million, up 20.4%. Underlying net profit after tax reached $30.9 million, up 17.9%. The company’s statutory financial statements separately reported EBITDA of $55.0 million and net profit after tax of $30.5 million. Underlying figures exclude $453,000 of acquisition-related costs and therefore should not be confused with statutory results.

Gross profit increased 14.0% to $138.2 million, although gross profit margin eased to 33.4%. The company attributed margin pressure to a greater proportion of complex, competitively priced orders. Operating expenses decreased from 21.4% to 20.0% of revenue, while underlying EBITDA margin increased from 13.1% to 13.4%. IPD Group (ASX:IPG) consequently recorded earnings growth despite the lower gross margin.

Operating free cash flow before interest and tax was $46.8 million, representing 84.4% conversion of underlying EBITDA. Net debt stood at $16.4 million at 30 June 2026, compared with $24.4 million at 31 December 2025. The group also reported net assets of $181.8 million. These measures provide additional context for the relationship between accounting earnings, cash generation and financing commitments.

Acquisition Integration and Shareholder Distributions

Platinum Cables joined the business during FY26, adding exposure to cables used in infrastructure, industrial and mining applications. Integrating the acquisition while maintaining service standards and managing operating costs remains relevant to the group’s performance. IPD Group (ASX:IPG) has also described operational efficiency and targeted acquisitions as priorities for FY27, without providing a specific earnings forecast in its FY26 results announcement.

The board declared a fully franked final dividend of 7.9 cents per share, bringing FY26 dividends to 14.7 cents per share. The company’s official dividend schedule recorded payment of the final dividend on 8 October 2026. Dividend decisions remain subject to future board assessments and are not a commitment to distributions at the same level.

Key Insights

IPD Group (ASX:IPG) finished FY26 with increased revenue, higher underlying earnings and a lower net debt balance than at the December 2025 half-year end. Data centre sales, divisional differences and the contribution from Platinum Cables explain different aspects of the reported result. Gross margin movements and acquisition integration remain relevant when interpreting subsequent financial disclosures. The group’s FY26 statements distinguish statutory earnings from adjusted measures, which is important for consistent comparisons.

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