IPH Ltd posted a 1.7% increase in underlying net profit after tax to AUD 122.7 million for the year ended June 30, 2026, though its shares fell 7.8% to AUD 3.89 following the earnings update.
Revenue rose 0.4% to AUD 712.8 million, supported by the Bereskin & Parr acquisition and growth in Canada, where like-for-like underlying EBITDA increased 11.8%. Group-wide like-for-like underlying EBITDA advanced 2.9% to AUD 205.9 million, while statutory net profit after tax climbed 16.9%. Underlying basic earnings per share increased 4.2%, and statutory basic EPS rose 19.7%.
Cash conversion remained robust at 110%, with free cash flow up 18.3% year-on-year. Net debt decreased 9.4% to AUD 414 million, reducing the leverage ratio to 1.8 times, below the company’s 2.0 times target ceiling. The group refinanced AUD 210 million of syndicated debt in December 2025, extending maturities into FY28 and FY29, while undrawn financing facilities stood at AUD 104.7 million.
Dividends for FY26 totaled AUD 0.385 per share, a 5.5% increase from the prior year, with a final payment of AUD 0.195 per share set for September 22. The payout ratio reached 84.7% of cash-adjusted NPAT. The company also executed share buybacks totaling AUD 18.7 million, reducing the weighted average number of shares on issue by AUD 6.3 million.
IPH operates across 26 jurisdictions with over 1,700 employees, with nearly 60% of earnings now derived from outside Australia and New Zealand. Canada alone accounts for more than one-third of group earnings. The Australian patent market expanded by 2.1% in FY26, though IPH’s group filings declined 2.9%, narrowing the gap to 5.0 percentage points from 6.7 points in the first half.
Management highlighted a 75% efficiency gain from an AI-driven process automation pilot, while also noting the integration of Pizzeys and Applied Marks into Griffith Hack on July 1. CEO Tony O’Malley, who assumed his role on July 1, described IPH as a business of “real value” with respected brands and long-standing client relationships. Group CFO Brendan York emphasized the company’s strong cash generation, which supported higher dividends, share buybacks, and improved earnings per share.
