IPH Limited reported a solid half-year performance with revenue up 6.5% to $363.9 million and net profit rising 10.5% to $41.2 million, driven by strong gains in Canada and Asia despite a decline in Australia and New Zealand.
- 6.5% revenue increase to $363.9 million for HY26
- Net profit after tax up 10.5% to $41.2 million
- Canada segment revenue surges 19.9%, Asia grows 5%
- Australia & New Zealand segment revenue declines 7.8%
- Interim dividend declared at 19.0 cents per share, 20% franked
Strong Half-Year Growth Driven by Canada and Asia
IPH Limited has delivered a robust financial performance for the half year ended 31 December 2025, with revenue climbing 6.5% to $363.9 million and net profit after tax increasing 10.5% to $41.2 million. This growth was largely propelled by a 19.9% surge in the Canadian segment and a 5% rise in Asia, offsetting a 7.8% revenue decline in the Australia and New Zealand (ANZ) region.
The company’s underlying EBITDA rose 6.6% to $107.1 million, reflecting operational efficiencies and the full-period contribution from the acquisition of Canadian IP firm Bereskin & Parr (B&P), completed in September 2024. The integration of B&P into the Smart & Biggar brand has begun to yield synergies, particularly in cost management and revenue growth.
ANZ Segment Faces Market Headwinds
Despite an overall market increase in Australian patent filings, IPH’s ANZ segment revenue declined by 7.8%, reflecting competitive pressures and a loss of market share. The company noted a 6.7% gap between its performance and market growth, with US applicants; who represent nearly half of the Group’s Australian filings; showing a 1.7% decline in activity. IPH remains the market leader in Australia but faces challenges in maintaining its share amid evolving client behaviours, including a rise in self-filed provisional applications.
Strategic Focus on AI and Operational Excellence
IPH is advancing its strategic initiatives by embedding artificial intelligence tools into core workflows and restructuring corporate services to empower member firms. These efforts aim to drive organic growth and operational excellence across its network in Australia, New Zealand, Asia, and Canada. The company plans further targeted AI investments and operational improvements throughout the remainder of FY26.
Corporate costs were reduced by 36.6%, aided by favourable foreign exchange movements and cost rationalisation, contributing to improved profitability. The Group’s cash conversion ratio remained strong at 100.7%, underscoring efficient cash flow management.
Capital Management and Leadership Transition
IPH refinanced $210 million of its syndicated debt facility, extending maturities to December 2028 and reducing net debt to $339.3 million, with a leverage ratio of 1.8 times EBITDA; comfortably within the company’s target range. The Board declared an interim dividend of 19.0 cents per share, 20% franked, reflecting confidence in ongoing cash generation.
Notably, Managing Director Dr Andrew Blattman announced his intention to retire in the second half of 2026, signaling an upcoming leadership transition. The company has also initiated an on-market share buy-back program commencing March 2026, aiming to return value to shareholders.
Outlook Amid Mixed Regional Performance
While the Canadian and Asian markets show promising growth trajectories, the ANZ segment’s challenges highlight the competitive and regulatory complexities in the region. IPH’s focus on technology integration and operational efficiency will be critical to sustaining momentum. Investors will be watching closely how the leadership change and AI initiatives influence future performance.
Bottom Line?
IPH’s half-year results underscore growth opportunities in Canada and Asia but spotlight the need to address ANZ market pressures as leadership changes loom.
Questions in the middle?
- How will IPH manage the competitive pressures and market share erosion in Australia and New Zealand?
- What impact will the Managing Director’s retirement have on the company’s strategic direction and execution?
- To what extent will AI integration accelerate organic growth and operational efficiencies across IPH’s global network?