Key Highlights

  • IPD Group (ASX:IPG) delivered record FY26 Revenue of $414.3 million, representing growth of 16.8% from FY25.
  • Underlying EBITDA increased 19.4% to $55.4 million, while underlying NPAT rose 17.9% to $30.9 million.
  • Data centre revenue increased 27% to $71.5 million, while the Platinum Cables Acquisition broadened exposure to infrastructure, industrial and Mining markets.
  • Net Debt declined to $16.4 million at 30 June 2026, alongside operating free Cash Flow of $46.8 million and total FY26 dividends of 14.7 cents per share.

IPD Group (ASX:IPG) closed FY26 with record revenue and earnings, exceeding the upper end of the guidance range previously provided in May. Revenue increased 16.8% to $414.3 million, while underlying EBITDA rose 19.4% to $55.4 million. Underlying NPAT increased 17.9% to $30.9 million, with underlying Earnings per share rising 17.4% to 29.7 cents.

The result reflects a combination of organic growth and the contribution from Platinum Cables, acquired on 31 December 2025. Excluding Platinum Cables, revenue increased 9.7% to $389.2 million and underlying EBITDA increased 11.0% to $51.5 million, indicating that growth was not solely dependent on the acquisition.

Operating efficiency also contributed to earnings performance. Underlying operating expenses declined from 21.4% of revenue in FY25 to 20.0% in FY26. As a result, the EBITDA Margin increased to 13.4%, compared with 13.1% a year earlier.

Data Centres and Infrastructure Remain Important Growth Drivers

IPD Group's exposure to data centre infrastructure continued to expand during the year. Data centre revenue increased 27% to $71.5 million, supported by Demand for power distribution products and enclosures.

Across the broader operating portfolio, IPD revenue increased 11%, while CMI revenue also grew 11%. EX Engineering recorded 35% revenue growth, partly reflecting a major oil and gas cable Supply contract. Excluding that contract, EX Engineering still recorded 23% growth.

Addelec experienced a different trading pattern, with revenue excluding the Kingsgrove Bus Depot project declining 7% amid project delays. The Business underwent a restructuring during FY26, including a greater emphasis on testing and calibration services, with a lower cost base entering FY27.

The acquisition of Platinum Cables has also increased IPD Group's exposure to mining and resources through specialised cable solutions. The transaction contributed six months of earnings during FY26 and expanded the Group's presence across infrastructure, industrial and mining applications.

Margins and Cash Generation

Gross profit increased 14.0% to $138.2 million, although gross margin declined from 34.2% to 33.4%. Management attributed the movement to a changing order mix, with more complex and competitive orders affecting Gross Profit margins.

Despite this pressure, margin performance improved during the second half, with gross margin rising from 33.1% in 2H25 to 33.4% in 2H26. Lower operating expenses as a proportion of revenue helped support EBITDA, EBIT and NPAT margins.

Cash generation remained a significant feature of the financial year. Operating free cash flow before interest and tax outflows was $46.8 million, equivalent to an 84.4% conversion rate. Net debt stood at $16.4 million at 30 June 2026, compared with $24.4 million at 31 December 2025.

Capital Management and FY27 Positioning

IPD Group declared total fully franked dividends of 14.7 cents per share for FY26, comprising the interim and final payments. The final Dividend of 7.9 cents per share is scheduled for payment on 8 October 2026, taking the total FY26 payout to $15.3 million.

The company enters FY27 with exposure to several infrastructure-related markets and a larger revenue base following the Platinum Cables acquisition. Management has highlighted continued Investment in operational efficiency, strategic acquisitions and growth opportunities, with the next formal performance update scheduled for the November 2026 annual general meeting.

Conclusion

IPD Group's FY26 results show continued expansion in revenue and earnings, supported by organic growth across several businesses, rising data centre activity and the contribution from Platinum Cables. While gross margin remained below the prior year's level, improvements in operating efficiency supported higher earnings margins and cash generation. The Balance Sheet also recorded lower net debt following the acquisition-funded increase earlier in the financial year. Entering FY27, the Group's performance will be influenced by demand across data centres, infrastructure, industrial and mining markets, alongside the integration and development of its expanded operating portfolio.