IPD Group reported record FY26 results, driven by robust data centre expansion and the Platinum Cables acquisition, delivering earnings above guidance and declaring a higher dividend.
- 16.8% revenue increase to $414.3 million
- Underlying EBITDA rises 19.4% to $55.4 million
- Data centre revenue up 27% to $71.5 million
- Acquisition of Platinum Cables expands mining exposure
- Final fully franked dividend declared at 7.9 cents per share
Record Earnings Beat Guidance on Data Centre and Acquisition Growth
IPD Group Limited (ASX:IPG) has delivered a standout FY26 performance, exceeding the top end of its earnings guidance with revenue climbing 16.8% to $414.3 million and underlying EBITDA jumping 19.4% to $55.4 million. The company’s net profit after tax rose 16.4% to $30.5 million, reflecting strong operating leverage and strategic execution across its diversified electrical infrastructure businesses.
Data centre expansion remains a key growth engine, with revenue from this segment surging 27% to $71.5 million. This growth underscores IPD’s entrenched position supplying critical electrical infrastructure to Australia’s rapidly scaling data centre market, which is poised for multi-gigawatt capacity increases driven by AI adoption and cloud computing demands.
Acquisition of Platinum Cables Bolsters Mining Sector Footprint
IPD’s acquisition of Platinum Cables, completed at the end of 2025 for $37.5 million, has broadened the Group’s exposure in the mining and resources sector, now its largest industry segment. Platinum contributed six months of earnings in FY26, complementing IPD’s 9.7% organic revenue growth (excluding Platinum), and bringing greater end market diversification.
Specialised cable solutions from Platinum have strengthened IPD’s relationships with tier-one mining customers and supported expansion into transport infrastructure projects, including rail. The acquisition was highly accretive, delivering an estimated 11.5% pro forma EPS uplift for FY25, and the Group has recognised goodwill of $33.9 million related to the deal.
Operational Efficiency and Margin Expansion Amid Complex Orders
Despite a slight compression in gross profit margin by 80 basis points due to a shift toward more complex and competitive orders, IPD improved operating expenses as a percentage of revenue by 140 basis points to 20.0%. This efficiency gain helped expand EBITDA margin to 13.4%, EBIT margin to 11.4%, and NPAT margin to 7.5%, all modest improvements on the prior year.
Individual business units performed well: IPD core revenue rose 11%, CMI Electrical posted an 11% increase driven by operational scale and export growth, while EX Engineering grew 35%, bolstered by a key oil and gas cable contract. Addelec faced project delays and repositioned its focus, resulting in a 7% revenue decline excluding a major bus depot project, but has restructured for improved profitability in FY27.
Strong Balance Sheet and Capital Management Support Growth
IPD’s balance sheet remains robust with net assets of $181.8 million and net debt reduced to $16.4 million as at 30 June 2026, despite the acquisition funding. The company’s leverage sits at a conservative 0.3x net debt to underlying EBITDA, reflecting disciplined capital management. Operating free cash flow conversion was strong at 84.4%, generating $46.8 million before interest and tax outflows.
The Board declared a final fully franked dividend of 7.9 cents per share, bringing total FY26 dividends to 14.7 cents per share, a 16.7% increase on the prior year and representing a 50% payout ratio. This signals confidence in the company’s cash flow generation and ongoing growth prospects.
Strategic Outlook Focused on Electrification and AI Infrastructure
Looking ahead, IPD Group enters FY27 with momentum from record results and a diversified portfolio aligned to long-term structural tailwinds in electrification, automation, and connectivity. The company is investing in operational excellence, strategic acquisitions, and emerging technologies to capture growth across data centres, mining, power utilities, and industrial infrastructure.
IPD’s recent opening of a consolidated Perth office aims to drive sales synergies and support expansion in Western Australia, a key mining and resources hub. Management’s focus on disciplined capital allocation and shareholder value maximisation will be closely watched as the Group navigates a complex macroeconomic environment.
Bottom Line?
IPD Group’s FY26 performance confirms its scalable model and strategic positioning, but sustaining margin expansion amid complex projects and integrating Platinum Cables will be key challenges in FY27.
Questions in the middle?
- How will IPD manage margin pressure from increasingly complex and competitive project orders?
- What impact will the contingent earn-out on Platinum Cables have on future earnings and cash flow?
- Can IPD sustain its strong organic growth alongside further acquisitions in a volatile macro environment?