Shares in IPH Limited (ASX: IPH) climbed 10% on Thursday (as at the time of writing) after the intellectual property services group announced its half-year results, which delivered higher earnings, strong cash generation, and an increased interim dividend.
The result reflects improved performance in Canada and Asia, helping offset continued weakness in the ANZ market.
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What did IPH report?
IPH reported revenue of $363.9 million for the half year to 31 December 2025, up 6.5% on the prior corresponding period.
Underlying EBITDA rose 6.6% to $107.1 million, with margins holding steady at 29.3%. Statutory net profit after tax increased 10.5% to $41.2 million, while underlying NPATA lifted 2.6% to $62.6 million.
Basic earnings per share rose to 15.8 cents, up 12.0%, while underlying EPS increased 3.9% to 24.0 cents.
Importantly, the company declared an interim dividend of 19 cents per share, up 11.8% on the prior period. The dividend is 20% franked and represents an 81% payout of cash-adjusted NPAT.
What else do investors need to know?
The headline strength was driven by a strong turnaround in Canada and a return to growth in Asia.
On a like-for-like basis, Canada delivered revenue growth of 7.3% and an 18.9% increase in underlying EBITDA, reflecting organic growth, acquisition synergies, and cost discipline. Asia returned to growth, with like-for-like revenue up 3.5% and EBITDA up 1.5%.
In contrast, ANZ remained under pressure. Like-for-like revenue fell 6.1%, and EBITDA declined 10.6%, largely due to the continued slowdown in US-originating PCT patent filings.
IPH also demonstrated strong cash conversion, with EBITDA converting to gross operating cash flow at 101%. Net debt reduced to $339.3 million, with leverage sitting at 1.8x — comfortably within the company's target range.
Management also announced an on-market share buy-back program of up to 12.2 million shares, adding further capital management flexibility.
What did management say?
CEO Dr Andrew Blattman described the half as demonstrating the group's resilience and diversification of its global footprint.
He highlighted the strong turnaround in Canada, noting organic revenue growth and acquisition synergies, although recovery in Canadian IP office workflow backlogs remains gradual.
In Asia, management pointed to encouraging growth outside Singapore, with filings across the broader region up 7.3%.
In ANZ, the focus remains on refocusing business development efforts away from US-originating filings and continuing cost discipline to protect margins.
Looking ahead, the company flagged continued strong cash generation and disciplined capital management as key themes for FY26.
Share price snapshot
Despite today's rally, IPH shares are still down 22% over the last 12 months amid concerns around patent filing volumes, particularly in Australia and New Zealand.
With earnings from outside the ANZ region now accounting for the majority of earnings and leverage comfortably controlled, IPH's earnings could stabilise.
