Infragreen Group Posts Record FY26 Earnings as Energybuild Leads Growth

Infragreen Group (ASX: IFN) has posted record earnings for the 2026 financial year, with underlying revenue rising 26% to $116.8 million and underlying EBITDA increasing 29% to $23.9m.

Statutory net profit after tax reached $7.6m compared with an $18.0m loss in FY25, while underlying NPAT climbed 325% to $7.1m and underlying net free cash flow increased 38% to $11.7m.

The diversified infrastructure investor generated $6.3m in dividends from its businesses, more than double the prior year, and declared a fully franked final dividend of 0.5 cents per share to take full-year dividends to 1.0 cents.

Infragreen expects underlying EBITDA of $26m to $28m in FY27 after finishing FY26 with a record fourth-quarter contribution of $7.6m.

Underlying net debt fell to $14.1m from $19.6m at 30 June 2025 excluding lease liabilities, equivalent to 0.6 times FY26 EBITDA, while the parent entity held $8.7m of cash and no borrowings.

Portfolio Driving Earnings Growth

Energybuild delivered the strongest earnings growth across the portfolio, with revenue rising to $71.0m from $35.1m and EBITDA increasing to $12.6m from $3.9m as new-build solar installations expanded sharply.

Infragreen’s 54.78% share of Energybuild contributed $6.9m of underlying EBITDA, up from $2.1m, while the business installed 58,076 kilowatts of clean energy during the year and generated $7.6m of net free cash flow.

Pure Environmental produced revenue of $84.8m and EBITDA of $33.4m, helped by higher hazardous waste volumes and growth investment, while Minemet Recycling generated revenue of $84.4m and EBITDA of $11.5m after softer ferrous scrap pricing and volumes through the middle of the year recovered in the fourth quarter.

Merredin Energy delivered $9.2m of EBITDA from $12.9m of revenue, supported mainly by capacity-credit income, leaving Infragreen’s portfolio businesses with combined underlying EBITDA of $26.6m before $2.7m of corporate operating expenses.

“Our businesses operate across 22 sites in Australia and New Zealand, with strategic footprints that are difficult to replicate and have high barriers to entry—this underpins the strong growth in revenue and earnings they continue to generate,” founder and managing director Declan Sherman said.

New Acquisitions and Opportunities

The group completed three bolt-on acquisitions during FY26 through Pure Environmental and reviewed 57 new platform opportunities, with a $10m undrawn debt facility available to support acquisitions.

A strategic review concluded that Infragreen’s share price materially undervalues its portfolio, prompting the board to continue its on-market share buyback and focus capital on the platforms it considers to have the greatest growth and upside potential.

The Pure Environmental sale process remains underway, although Infragreen continues to view the business positively and may participate in a transaction depending on the terms, while portfolio optimisation may also include other business sales alongside new investments and acquisitions.

For FY27, management expects further growth from solar installations, returns on Pure Environmental’s recent growth investment, improved conditions for industrial recycler Minemet, and continuing capacity-credit revenue at Merredin Energy.