IPD Group has reported record full-year results for FY25, with revenue surging 22.1% to $354.7 million and net profit rising 17% to $26.2 million. The company’s growth is underpinned by strategic acquisitions and strong demand in data centres and EV infrastructure.
- Record FY25 revenue of $354.7 million, up 22.1%
- Net profit after tax increased 17% to $26.2 million
- Earnings per share rose 8.6% to 25.3 cents
- Net cash position improved to $9.8 million from net debt
- Fully franked dividend increased 16.7% to 12.6 cents per share
Strong Financial Performance
IPD Group has delivered a standout FY25 full-year performance, posting record revenue of $354.7 million, a 22.1% increase on the prior year. Net profit after tax climbed 17% to $26.2 million, while earnings per share rose 8.6% to 25.3 cents. These results place the company at the top end of its earnings guidance, reflecting robust operational execution and successful integration of recent acquisitions.
The company’s EBITDA grew 19.3% to $46.4 million, supported by strong cash flow conversion of 113.6%, and a net cash position of $9.8 million, a significant turnaround from net debt of $8.8 million the previous year. This financial flexibility underpins IPD’s capacity to invest in growth and return value to shareholders.
Growth Drivers and Market Position
IPD’s growth was fuelled by acquisitions of EX Engineering and CMI Operations, which expanded its footprint across power distribution, electrical engineering, and hazardous area equipment. The company’s diversified revenue streams span critical infrastructure sectors including data centres, water and wastewater, and electric vehicle (EV) charging infrastructure.
Data centre revenue surged 33% year-on-year, now representing 16% of group revenue, driven by the booming demand for cloud, AI, and 5G infrastructure. Meanwhile, the EV market continues its long-term structural growth, with Australian EV sales tripling since 2022, positioning IPD to benefit from expanding EV charging networks and public transport electrification projects.
Strategic Initiatives and Operational Enhancements
IPD has strategically expanded its national presence with new offices in Brisbane and Melbourne, enhancing collaboration and sales synergies. Operational improvements include supply chain automation, inventory optimisation, and workforce efficiency initiatives. The company also strengthened vendor partnerships, notably with ABB, which accounts for nearly a third of revenue and supports growth in key infrastructure sectors.
Major projects secured during the year include contracts with Sydney Airport, Western Sydney University, NRMA’s national EV charging rollout, and supply agreements for Amazon data centres and mining operations in Mongolia and Papua New Guinea. These contracts underscore IPD’s trusted position across diverse and critical infrastructure markets.
Outlook and Strategic Focus
Looking ahead, IPD remains focused on sustainable growth through market expansion, operational efficiency, and leveraging emerging technologies such as IoT and smart grid digitalisation. The company anticipates continued demand from renewable energy transitions, data centre expansion, and EV infrastructure development, despite some challenges in commercial construction sectors.
IPD’s strategic pillars emphasize business growth through acquisitions and customer value, operational scalability, sustainability initiatives, and people development. The company plans to provide a trading update at its upcoming AGM in November, with expectations to capitalise on improving market conditions and legislative support for energy transition projects.
Bottom Line?
IPD Group’s FY25 results confirm its strong positioning to capitalise on the accelerating energy transition, but investors will watch closely for execution on growth and margin sustainability amid evolving market dynamics.
Questions in the middle?
- How will IPD manage margin pressures from recent acquisitions amid market headwinds?
- What impact will ongoing supply chain and inflationary challenges have on future profitability?
- How quickly can IPD scale its EV infrastructure and data centre offerings to sustain growth?