IPD Group (ASX:IPG): How Are Data Centres and Electrical Projects Affecting FY26 Results?

Aditi Sarkar

12 November 2026 09:36 PM AEDT

IPD Group (ASX:IPG): How Are Data Centres and Electrical Projects Affecting FY26 Results?

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Highlights

IPD Group (ASX:IPG) reported FY26 Revenue of AUD 414.3 million, up 16.8%.
Data centre revenue climbed 27% to AUD 71.5 million in FY26.
Underlying EBITDA reached AUD 55.4 million, with a 13.4% margin.
Operating free Cash Flow was AUD 46.8 million and net Debt declined to AUD 16.4 million.

IPD Group (ASX:IPG) distributes electrical equipment and provides specialist solutions in power management, automation and infrastructure. The 12 November 2026 session ended with IPD shares at AUD 5.46. The latest annual results highlight growth in electrical infrastructure and data centre-related sales.

Electrical Distribution and Technical Solutions

IPD Group (ASX:IPG) supplies electrical equipment and integrated solutions spanning power distribution, energy management, automation, communications and specialised industrial applications. Its Business includes product distribution, technical assembly, electrical engineering and cable-related services. Customer industries include data centres, infrastructure, energy and industrial facilities. Project specifications and supplier relationships shape product demand, while assembly and service activities add a different operating component. These activities expose the group to infrastructure Investment cycles, procurement timing and the availability of electrical components.

Data Centre Work and Portfolio Development

IPD (ASX:IPG) identified data centres as an important contributor to FY26 sales growth. Revenue associated with this market rose 27% to AUD 71.5 million as the company supported multiple data centre developments. In addition to the core IPD distribution business, the group reported contributions from CMI and EX Engineering. The company's Acquisition of Platinum Cables in December 2025 was integrated during the financial year. These developments widened the portfolio of cables and specialised electrical products while adding integration activities involving inventory, systems and customer relationships.

FY26 Results, Cash Generation and Dividends

For the financial year ended 30 June 2026, IPD (ASX:IPG) reported revenue of AUD 414.3 million, up 16.8%. Underlying EBITDA increased 19.4% to AUD 55.4 million, representing a Margin of 13.4%. Underlying EBIT rose 20.4% to AUD 47.2 million and underlying net profit after tax increased 17.9% to AUD 30.9 million. Operating free cash flow reached AUD 46.8 million. Net debt decreased to AUD 16.4 million after the Platinum Cables acquisition. The group declared FY26 dividends totalling 14.7 cents per share, comprising a 6.8-cent interim Dividend and 7.9-cent final dividend, both fully franked.

Supply Chain, Competition and Monitoring Points

IPD (ASX:IPG) is exposed to changes in the timing of customer electrical projects and to the purchasing patterns of industrial and infrastructure operators. Supplier arrangements, component prices, foreign exchange movements and inventory management can affect gross margins and cash conversion. Acquisitions add integration costs and operational complexity. Investors can monitor the progression of data centre orders, margins across the distribution and engineering activities, Working Capital and the effectiveness of the Platinum Cables integration. Financial reporting should distinguish reported and Underlying Profit measures when evaluating changes over time.

Segment Exposure and Financial Interpretation

The reported growth in data centre revenue provides a useful view of one market served by IPD, but that sales figure represents only part of the company's AUD 414.3 million of FY26 revenue. The remainder comes from other electrical distribution, Manufacturing and specialist engineering activities with different customers and procurement cycles. Underlying EBITDA and underlying net profit are management's adjusted performance measures, while statutory results are presented separately in formal financial statements. These measures should not be mixed when evaluating margins or comparing periods. The 13.4% underlying EBITDA margin offers a basis for monitoring whether sales growth is accompanied by operating efficiency. Cash conversion and net debt are also relevant because expansion of product ranges or inventory can absorb working capital even in a period of higher accounting profit. Future reports can clarify how much growth is organic and how much reflects acquisitions.

Key Insights

IPD Group (ASX:IPG) recorded higher FY26 sales, Earnings and data centre revenue, accompanied by operating free cash flow and lower net debt. Its performance reflects a mix of product distribution, engineering services and acquired businesses. The quality of future results will depend on contract execution, inventory discipline, Supply conditions and customer activity in electrical infrastructure projects.

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