IPD Group closed FY26 with record revenue and earnings, a higher fully franked dividend and leverage of about 0.3 times underlying EBITDA. The electrical infrastructure provider enters FY27 with its data centre pipeline and Platinum Cables integration carrying much of the growth narrative.
- Revenue up 16.8% to $414.3 million
- Underlying EBITDA rises 19.4% to $55.4 million
- Data centre revenue increases 27% to $71.5 million
- Total fully franked dividends lifted to 14.7 cents per share
- Net debt of $16.4 million after Platinum Cables acquisition
Record revenue and earnings exceed guidance
IPD Group Limited (ASX:IPG) has finished FY26 with a broad-based result that put both revenue and underlying earnings at records. Revenue rose 16.8% to $414.3 million, while underlying EBITDA increased 19.4% to $55.4 million and underlying NPAT climbed 17.9% to $30.9 million. Underlying EBIT of $47.2 million exceeded the top end of guidance provided during the year.
The statutory numbers were similarly strong, although slightly lower after $453,000 of acquisition-related costs: NPAT rose 16.4% to $30.5 million and basic earnings per share increased to 29.3 cents from 25.3 cents. IPD also reported operating free cash flow before interest and tax outflows of $46.8 million, equivalent to 84.4% cash conversion.
Data centres lead the infrastructure portfolio
Data centre revenue grew 27% to $71.5 million, with projects involving customers and contractors across switchboard systems, busway power distribution, low-voltage distribution and UPS solutions. The annual report names work connected with Firmus, Stack, NEXTDC and Amazon Web Services sites, though it does not quantify the value or timing of the broader project pipeline.
The result builds on the FY26 earnings guidance beat, while IPD says its exposure to power distribution, cables, automation and hazardous-area equipment positions the group across electrification, digital infrastructure and industrial investment. More than 60% of reported revenue is described as aligned with markets adjacent to artificial intelligence investment, including data centres, power and resources.
Platinum Cables expands mining exposure
Platinum Cables contributed six months of earnings after IPD completed the acquisition on 31 December 2025. The business broadened the group’s exposure to mining, industrial and infrastructure customers, while the annual report points to specialised cable ranges, tier-one mining relationships and rail opportunities as areas of activity.
The transaction was previously reported as a Platinum Cables acquisition funded mainly through cash and debt. The annual report records total purchase consideration of $45.554 million, including $36.307 million in cash, $500,000 in shares, deferred consideration and contingent consideration capped at $7.5 million. It also records $33.884 million of goodwill, making acquisition performance and integration important contributors to the asset base as well as the earnings story.
Cash generation supports dividends despite higher debt
Net debt ended FY26 at $16.4 million, comprising $48.6 million of borrowings less $32.2 million of cash. That represents about 0.3 times underlying EBITDA, despite the additional debt used to fund Platinum. Inventory increased by $13.2 million during the year, reflecting project delivery requirements and the acquired business, while gross margin fell 80 basis points year on year as the order book shifted towards more complex and competitive work.
The board declared total FY26 dividends of 14.7 cents per share, fully franked, up 16.7% from FY25 and equal to a 50% payout ratio. The final dividend is 7.9 cents per share, following the 6.8-cent interim payment.
FY27 begins with operating questions still open
IPD says FY27 has started with positive momentum and highlights the new Perth facility, operational efficiencies and a reset of Addelec’s cost base. Addelec’s revenue declined 7% excluding the Kingsgrove Bus Depot project, while the company says its restructure and increased focus on testing and calibration should support improved profitability in FY27. EX Engineering revenue rose 35%, and CMI delivered a record result, providing some balance across the portfolio.
The next formal checkpoint is the annual general meeting on 24 November 2026. By then, the market will have more evidence on whether data centre activity converts into sustained revenue, whether Platinum can deliver against the earn-out framework and whether IPD can preserve cash conversion while continuing to fund acquisitions, facilities and shareholder distributions.
Bottom Line?
The FY26 numbers are strong, but FY27 must prove that data centre momentum and Platinum’s contribution can offset margin pressure and support further growth without materially stretching the balance sheet.
Questions in the middle?
- How much of the data centre project pipeline will convert into FY27 revenue and earnings?
- Can Platinum Cables meet the performance threshold linked to its contingent consideration?
- Will Addelec’s restructure and the group’s productivity initiatives lift margins after the FY26 mix-related compression?