A strong share price run is not protecting IPD Group Ltd (ASX: IPG) shares from a heavy fall today.
The electrical solutions company is down 8.24% to $5.68 on Thursday after releasing its FY26 earnings guidance.
It has still been a big year for shareholders, with IPD shares up around 29% in 2026 and 60% over the past 12 months.
Here's what the company told investors.
Image source: Getty Images
Guidance still points to growth
According to the release, IPD expects FY26 underlying EBITDA of between $54.5 million and $55.3 million.
At the midpoint, this represents growth of about 18% compared with FY25 statutory EBITDA.
The company also expects underlying EBIT of between $46.3 million and $47.1 million, which would be around 19% higher on the same basis.
Excluding the recently acquired Platinum Cables business, IPD is still expecting growth.
On that measure, underlying EBITDA is forecast to land between $50.5 million and $51.3 million, while EBIT is expected between $42.7 million and $43.5 million.
Both would be around 10% higher than FY25 statutory results.
The guidance is based on unaudited results for the 10 months to the end of April, along with management forecasts for May and June.
What's driving the growth?
The update points to an improvement coming from more than one part of the business.
IPD said revenue is expected to rise in FY26, supported by strong growth across its core business and EX Engineering.
CMI Electrical is also expected to deliver a record result, with revenue forecast to move above the levels it was generating before IPD bought the business.
Data centre revenue is another area moving higher, with a 25% increase expected compared with the prior corresponding period.
Data centre demand is still attracting plenty of attention across the market, as businesses spend more on power, infrastructure, cloud computing, and AI-related capacity.
IPD also expects gross profit margins to improve through the second half.
The company said its order book is continuing to shift towards more complex and competitive work, which is helping margins.
Costs are also taking up a smaller share of revenue after IPD invested in the business.
What does IPD do?
IPD isn't a household name for many retail investors, but it sits in a part of the market with several long-term tailwinds.
The company provides electrical products and services across power distribution, energy management, automation, industrial communications, hazardous area equipment, EV charging, and electrical engineering.
Its portfolio includes IPD, Addelec, EX Engineering, CMI Electrical, and Platinum Cables.
Together, these businesses give IPD exposure to infrastructure spending, electrification, data centres, industrial upgrades, and energy-related projects.
Foolish Takeaway
The update IPD provided today wasn't bad at all. The company is still guiding to higher earnings, stronger revenue, and better margins.
This fall looks more like a reaction to how far the share price has already run.
After a 60% gain over the past year, investors may have wanted more than just steady growth. Some may also be taking profits while the stock is still well ahead for 2026.
