Can IPH Sustain Growth Amid CIPO Delays and Strategic Shift to Organic Focus?

Financial Performance Highlights

IPH Limited has delivered a strong financial performance for the full year ended 30 June 2025, with revenue climbing 16.6% to $710.3 million and net profit after tax rising 13.2% to $68.8 million. This growth reflects both acquisitive and organic drivers, underscoring the resilience of IPH’s diversified global intellectual property (IP) services business.

The company’s underlying EBITDA improved 6% to $207.2 million, supported by cost efficiencies and integration synergies from recent acquisitions. Earnings per share rose modestly, while the dividend was increased to 36.5 cents per share, maintaining a consistent track record of shareholder returns.

Strategic Acquisition and Integration in Canada

FY25 marked a pivotal year for IPH’s Canadian expansion with the acquisition of Bereskin & Parr (B&P) in September 2024, its fourth acquisition in the market. The integration of B&P into the Smart & Biggar (S&B) brand was completed successfully by March 2025, delivering cost synergies exceeding initial targets.

Canada now represents approximately 41% of group revenue, highlighting the strategic importance of this market. Despite operational disruptions caused by delays at the Canadian Intellectual Property Office (CIPO), IPH expects these to be temporary, with backlog clearance anticipated to bolster FY26 revenues.

Pivot to Organic Growth and AI-Driven Operational Excellence

Following a period of acquisitive growth, IPH has shifted its strategic focus towards organic performance and operational excellence. The company is investing in targeted technology upgrades, including embedding artificial intelligence (AI) into core workflows such as patent drafting and administrative functions. This initiative aims to streamline operations, reduce costs, and enhance client service delivery across its network.

Corporate services have been restructured to empower member firms to drive localized growth strategies, while the executive leadership team has been realigned to support this new strategic direction. These moves are designed to leverage the scale and capabilities of IPH’s existing network across Australia, New Zealand, Asia, and Canada.

Sustainability and Governance Progress

IPH continues to advance its sustainability agenda, with enhanced greenhouse gas emissions reporting and preparation for mandatory climate-related disclosures commencing FY26. The company has also developed a comprehensive Diversity, Equity, and Inclusion (DEI) strategy and received endorsement for its inaugural Reflect Reconciliation Action Plan in Australia.

Governance remains a priority, with the Board overseeing a remuneration framework review following shareholder feedback. Changes planned for FY26 include rebalancing executive incentives to better align with company performance and shareholder interests.

Robust Balance Sheet and Capital Management

IPH maintains a strong financial position, with net debt reduced to $415.3 million and a leverage ratio of 1.9 times EBITDA, comfortably within target ranges. The company completed a $125 million capital raising in August 2024 to fund acquisitions and reduce debt, alongside a $75 million share buyback program that returned capital to shareholders.

Cash flow conversion remains robust at 103%, underpinning the company’s capital-light business model and capacity to invest in growth while rewarding shareholders.