IPH Limited delivered a 16.9% increase in net profit after tax to $80.4m for the financial year ended 30 June 2026, a standout result that masks an underlying business performing even more robustly than headline figures suggest. The intellectual property services group reported statutory basic earnings per share of 30.9 cents, up 19.8% from the prior year, demonstrating the strength of the company’s core operations despite a challenging foreign exchange environment throughout the year.
The most revealing metric lies in IPH’s like-for-like underlying earnings, which grew 2.9% when adjusted for both the impact of the Bereskin & Parr acquisition in Canada and unfavourable currency movements. The Australian dollar appreciated 3.1 cents against the US dollar and 3.5 cents against the Canadian dollar during the year, dragging headline underlying EBITDA down 0.6% to $205.9m despite the underlying business momentum. This currency headwind is particularly material given that 37% of group revenue is generated in USD with no matching USD cost base, creating a natural currency mismatch that affected reported earnings.
Underlying net profit after tax adjusted to exclude non-cash amortisation of acquired intangible assets, or underlying NPATA, increased 1.7% to $122.7m. This metric provides a clearer picture of operating performance in a company pursuing growth through acquisition, as IPH has done with the Bereskin & Parr purchase. The underlying earnings per share of 47.2 cents reflects genuine progress in the business.
The dividend decision underscores management confidence in this performance trajectory. IPH declared a final dividend of 19.5 cents per share, 30% franked, resulting in total FY26 dividends of 38.5 cents per share, up 5.5% from the prior year. The consistency of the final dividend with the prior year also at 19.5 cents suggests the company is not treating the profit growth as a one-off benefit but rather embedding it into sustainable distributions. Strong cash generation supported this outcome, with the company reporting a cash conversion ratio of 110%.
Geographic diversification continues to strengthen the business. The company now generates 58% of underlying EBITDA outside ANZ, providing natural hedging against any slowdown in the Australian and New Zealand markets. Revenue itself grew 0.4% to $712.8m, with solid organic growth in Canada offset by a decline in ANZ, though the mix shift toward higher-margin international markets may ultimately prove more valuable than the modest headline growth rate suggests.
Investors should watch for clarity on how much of the headline earnings growth proves sustainable as foreign exchange rates normalise, and whether the company can maintain momentum in Canada and other markets given competitive pressures in professional services. This announcement is price sensitive and has been classified as material information by the ASX.
View the full ASX announcement (PDF)
About IPH Limited (ASX: IPH)
IPH Limited is an intellectual property services company providing filing, prosecution, enforcement, and management services for patents, designs, trademarks, and legal matters. The company operates through subsidiaries across Australia, New Zealand, Canada, and Asia, serving Fortune Global 500 companies, multinationals, research organizations, SMEs, and individual clients. Founded in 1887 and headquartered in Sydney, IPH operates global IP brands including AJ Park, Griffith Hack, Smart & Biggar, and Spruson & Ferguson.
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