What did IPD Group (ASX:IPG) announce in its May 2026 trading update?

IPD Group issued a positive earnings guidance upgrade for the financial year ending 30 June 2026 (FY26). Driven by strong ten-month trading results and recent acquisitions, the company increased its underlying EBITDA guidance to between $54.5 million and $55.3 million.

How does IPD Group’s FY26 earnings guidance compare to last year's results?

The upgraded FY26 underlying EBITDA guidance of $54.5 million to $55.3 million represents an 18% increase on the FY25 statutory EBITDA of $46.4 million. Additionally, underlying EBIT is forecasted to reach $46.3 million to $47.1 million, which is an approximate 19% jump compared to the prior year.

Which business segments are driving revenue growth for IPD Group (ASX:IPG)?

Growth is being led by the core IPD business and EX Engineering, alongside a projected record revenue performance from CMI that surpasses pre-acquisition levels. The data centre segment is also acting as a massive catalyst, with revenues surging 25% compared to the prior corresponding period.

What is happening to IPD Group’s profit margins and operating expenses?

Gross profit margins are expected to hold steady with first-half levels as IPD Group's order book shifts toward more complex, competitive orders. Meanwhile, operating expenses as a percentage of revenue have decreased following the completion of targeted investments into the company's cost base.

How are recent acquisitions impacting IPD Group (ASX:IPG)?

Acquisitions are successfully expanding the company's earnings profile and driving top-line synergies as sales teams become integrated. A key example is CMI, which is tracking toward record revenue figures that exceed the levels recorded before it was purchased by IPD Group.

What are the main bullish arguments for IPD Group (ASX:IPG) stock after this news?

The bull case rests on high-growth exposure to data centres (+25% revenue) and expanding EBIT margins (~19% growth) driven by lower relative operating expenses. Furthermore, management's ability to extract clear synergies from recent acquisitions de-risks their ongoing M&A growth strategy.

What are the key risk factors or bear points investors should watch for IPD Group?

While demand is strong, the shift toward more complex and competitive orders could cap future gross margin expansion. Investors should also monitor macroeconomic headwinds highlighted by management, specifically potential volatility in global freight and logistics costs.

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IPD Group upgrades FY26 guidance following strong trading

Written by Mahathir BayenaPublished May. 20 2026Last Updated May. 20 2026

IPD Group (ASX:IPG) has issued a positive earnings update for the financial year ending June 30, driven by trading performance and strategic acquisitions.

Based on unaudited financial results for the ten months ended April and management projections for the remainder of the year, the electrical distributor has upgraded its underlying EBITDA guidance to a range of $54.5 million to $55.3 million.

This represents an 18% increase compared to the FY25 statutory result of $46.4 million.

Underlying EBIT is forecasted to land between $46.3 million and $47.1 million, marking an approximate 19% growth on the prior year.

The company's upward trajectory is underpinned by strong revenue growth across its core IPD business and EX Engineering.

CMI is expected to deliver a record result, with revenues projected to surpass pre-acquisition levels.

Data centre revenues remain a key growth driver, growing 25% on the prior corresponding period.

While gross profit margins are expected to remain consistent with first-half levels as the order book pivots towards more complex, competitive orders, operational efficiencies have improved.

Operating expenses as a percentage of revenue have reduced following the completion of targeted cost-base investments.

IPD Group CEO Michael Sainsbury expressed confidence in the company's momentum, noting that previous acquisitions are delivering clear top-line synergies as sales teams align.