IPD Group's Strong Performance.
IPD Group Achieves Record $414.3 Million FY26 Revenue, Boosting Earnings and Dividends.
Key Points
EX Engineering revenue jumped 35% year-on-year, driven in part by a key oil-and-gas cable supply contract; excluding that contract, EX Engineering revenue still rose 23%.
Addelec revenue declined 7% versus the prior period when excluding the Kingsgrove Bus Depot project, with management restructuring focused on testing and calibration services.
IPD opened a new Perth office to streamline Western Australian operations and support growth across its brands.
Data Centres represented 17% of IPD Group revenue in FY26, illustrating its growing but still diversified contribution to the business.
IPD declared a final fully franked dividend of 7.9 cents per share, payable on Oct. 8, 2026, bringing the total FY26 dividend to 14.7 cents per share.
IPD Group (ASX: IPG) posted record FY26 revenue of $414.3 million, up 16.8% from the prior year and beating the top end of its own guidance, according to Kalkine. Underlying EBITDA rose 19.4% to $55.4 million, while net profit after tax climbed 17.9% to $30.9 million.
The result was driven by surging data centre demand and the six-month contribution of Platinum Cables, which IPD acquired during the year. Small Caps reported that the company declared a total fully franked dividend of 14.7 cents per share for FY26, including a final dividend of 7.9 cents payable on October 8, 2026.
Data Centres and Platinum Cables Fuel Record Result
Data centre products were a standout, rising 27% to $71.5 million and making up 17% of total group revenue, according to Small Caps. That growth came from strong demand across multiple IPD divisions, not just one segment. Management said data centre demand remained a key theme heading into FY27.
The Platinum Cables acquisition added meaningful scale. It helped shift IPD's order mix toward larger, more complex jobs. Excluding Platinum Cables, underlying revenue still grew 9.7%. Gross margin held steady at 33.4%, and operating costs improved to 20.0% of revenue, pushing EBITDA margin to around 13.4%.
EX Engineering Surges 35% on Oil-and-Gas Contract Win
EX Engineering was the group's fastest-growing division. Revenue jumped 35% year-on-year, partly driven by a key oil-and-gas cable supply contract. Even excluding that contract, EX Engineering revenue still rose 23%, showing broad-based momentum beyond a single deal.
The new Perth office also supported Western Australian growth. IPD opened the office to streamline operations and support multiple brands in the region. Management sees the west coast as a long-term growth opportunity, particularly for infrastructure and resources projects.
Addelec Pulls Back as IPD Refocuses the Division
Not every division outperformed. Addelec revenue fell 7% compared to the prior period when excluding the Kingsgrove Bus Depot project, which had inflated earlier figures. Management is restructuring Addelec to focus on testing and calibration services, a narrower but potentially more profitable niche.
The restructure signals IPD is willing to trim lower-margin work to protect overall group profitability. Gross margin holding at 33.4% across the group suggests the strategy is working so far. Investors will want to watch Addelec's trajectory as the restructure matures.
Light Debt Load Leaves Room for Further Acquisitions
IPD ended FY26 with net debt of just $16.4 million. That implies leverage of roughly 0.3 times underlying EBITDA — a very comfortable level, according to Grafa. It gives the company significant room to fund new deals without stretching its balance sheet.
Management flagged plans for continued capital-light expansion and selective acquisitions into FY27. Underlying earnings per share came in at 29.7 cents. TipRanks noted that the strong results sparked a buy call from at least one analyst, with shares surging after the audited report was released. The next investor update is expected at the November AGM.
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