IPD Group Delivers Record FY26 Result on Sales Revenue Growth and Operational Efficiency

IPD Group (ASX: IPG) has delivered record revenue and earnings above the top end of its May guidance for FY26, with sales revenue rising 16.8% to $414.3 million.

Underlying EBITDA increased 19.4% to $55.4m, while underlying NPAT rose 17.9% to $30.9m and underlying EPS climbed 17.4% to 29.7 cents.

The result combined organic growth with a six-month contribution from Platinum Cables, while data centre revenue increased 27% to $71.5m and remained one of the group’s fastest-growing end markets.

IPD declared total fully franked FY26 dividends of 14.7 cents per share, up 16.7%, as operating free cash flow before interest and tax outflows reached $46.8m.

Efficiency Offsets Margin Pressure

The revenue mix continued to shift towards larger and more competitive projects, reducing gross profit margin by 80 basis points to 33.4%, but operating expenses as a share of revenue improved by 140 basis points to 20.0%.

That efficiency supported margin expansion further down the income statement, with the EBITDA margin increasing to 13.4% and underlying EBIT rising 20.4% to $47.2m.

Gross profit margin stabilised as the year progressed, improving from 33.1% in the second half of the 2025 financial year to 33.4% in the second half of FY26, while the corresponding EBITDA margin reached 13.5%.

Excluding Platinum Cables, underlying revenue grew 9.7% to $389.2m and EBITDA increased 11.0% to $51.5m, maintaining the group’s organic growth alongside its acquisition strategy.

Broader Growth from Data Centres

IPD revenue increased 11% as data centre demand supported growth in power distribution products and enclosures, while the group’s broader data centre offering spans the electrical infrastructure path from grid connection to rack.

The business supplies medium-voltage cables and connectors, low-voltage switchboards and distribution equipment, critical power, busway, cabling, monitoring, and controls, giving it exposure across multiple stages of major projects.

Data Centres represented 17% of group revenue in FY26, behind Commercial & Buildings at 29% and Mining & Resources at 27%, while more than 60% of revenue was aligned with AI investment-adjacent markets including infrastructure, mining, water and wastewater, and power utilities.

IPD noted that large data centre projects typically carry lower gross margins and a lumpier order profile, but lower working capital requirements and cost to service support the overall economics.

CMI Electrical delivered a record result with revenue up 11%, EX Engineering revenue climbed 35% and Addelec entered the new financial year with a more sustainable cost base after a restructure that targeted about $3m of annualised cost reductions.

Balance Sheet to Support Expansion

IPD completed the Platinum Cables acquisition on 31 December 2025 after securing $37.5m of new debt to help fund the transaction, expanding its exposure to specialised cable solutions for mining and resources customers.

By 30 June, the group held $181.8m of net assets and net debt stood at $16.4m, comprising $48.6m of debt and $32.2m of cash, leaving leverage at about 0.3 times net debt to underlying EBITDA.

The group opened a new Perth office in July 2026 that consolidated four facilities and brought together IPD, CMI Electrical, and EX Engineering, with expanded showroom and training facilities intended to support further sales collaboration.

IPD entered FY27 with positive momentum and plans to continue pursuing operational efficiencies, disciplined capital allocation, strategic acquisitions, and investment in growth opportunities.

The company’s next performance update is due at the annual general meeting on 24 November 2026.