IPH Limited reported solid FY25 profit growth driven by Canadian acquisitions and a promising FY26 start despite challenges in Australia and New Zealand. CEO Andrew Blattman announced his retirement for late 2026, marking a pivotal leadership transition.
- FY25 statutory net profit after tax rose to $68.8 million
- Underlying EBITDA up 6% to $207.2 million, boosted by Canadian acquisitions
- FY26 first four months show 7% revenue and 13% EBITDA growth
- Australia/New Zealand segment faces ongoing pressure from declining US PCT filings
- CEO Andrew Blattman to retire in second half of 2026, Board renewal underway
Strong FY25 Performance Amid Market Challenges
IPH Limited closed FY25 with a statutory net profit after tax of $68.8 million, up from $60.8 million the previous year. Underlying EBITDA increased 6% to $207.2 million, largely driven by strategic acquisitions in Canada, including Bereskin & Parr, Ridout & Maybee, and Robic. These moves have solidified IPH’s position as a leading intellectual property services group across multiple jurisdictions.
Despite a flat like-for-like revenue performance when excluding acquisitions and currency impacts, the company managed to grow earnings, reflecting operational efficiencies and cost discipline. The Board declared a final dividend of 19.5 cents per share, bringing total dividends for FY25 to 36.5 cents, a 4% increase, underscoring IPH’s commitment to shareholder returns.
FY26 Trading Update, Growth in Canada and Asia Counters ANZ Headwinds
Trading in the first four months of FY26 (July to October 2025) has been encouraging, with group revenue rising 7% to $241.7 million and underlying EBITDA climbing 13% to $72.4 million. This growth was primarily driven by Canada and Asia segments, where like-for-like EBITDA improved by 12.9% and 1.6% respectively. The Canadian business is benefiting from the resolution of prior disruptions at the Canadian Intellectual Property Office, while Asia continues to see increased filings after a three-year lull.
Conversely, the Australia and New Zealand segment remains under pressure, with like-for-like revenue down 7.7% and EBITDA falling 10%. The decline is attributed to a significant drop in US Patent Cooperation Treaty filings, which historically have been a major source of business for IPH’s ANZ member firms, compounded by a sluggish New Zealand economy. An unusual surge in self-filed provisional patent applications in Australia adds complexity to the market dynamics.
Strategic Responses and Operational Enhancements
IPH is actively responding to these challenges by diversifying its revenue base beyond the US, targeting filings from Western Europe, Japan, South Korea, and China. The company is also intensifying business development efforts at the member firm level and implementing cost reductions expected to save $8-10 million annually from FY26 onwards. A refreshed remuneration framework aims to better align executive incentives with shareholder value, including increased equity-based short-term incentives and relative total shareholder return metrics for long-term incentives.
Technology integration, particularly AI, is a key focus to streamline patent drafting, prosecution, and administrative processes, enhancing efficiency and reducing costs. The company also finalized a Group-wide Diversity, Equity, and Inclusion strategy and advanced sustainability initiatives, preparing for mandatory climate-related disclosures.
Leadership Transition and Board Renewal
In a significant leadership update, CEO Andrew Blattman announced his intention to retire in the second half of 2026 after nearly nine years at the helm and a 30-year tenure with IPH. His leadership has been instrumental in expanding IPH’s footprint, particularly in Canada and Asia. The Board is progressing renewal efforts with the recent appointment of Kate Mason, bringing expertise in human resources and business transformation, while Jingmin Qian will retire at the conclusion of the AGM.
The transition period is designed to ensure continuity and stability as IPH navigates its next growth phase. The company’s strategic balance of empowering member firms while leveraging group-wide scale remains central to its future direction.
Bottom Line?
As IPH adapts to shifting patent filing trends and leadership changes, investors will watch closely how diversification and operational efficiencies translate into sustained growth.
Questions in the middle?
- How will IPH’s diversification strategy beyond US filings impact long-term revenue stability?
- What is the timeline and profile for the incoming CEO succeeding Andrew Blattman?
- How effectively can AI integration and cost reductions offset ongoing challenges in Australia and New Zealand?