Innovative Energy Group Limited (ENERGY)

Unaudited financials for the year ended May 31, 2026:

Innovative Energy Group Limited (ENERGY) for the twelve months ended May 31, 2026, reported a 6% increase in Revenue totaling $340.47 million compared to $321.21 million in the corresponding period last year. Revenue for the fourth quarter had a 315% increase to close at $122.55 million compared to $29.51 million for the comparable quarter of 2025.

Cost of Sales amounted to $178.98 million (2025: $112.74 million), this represents an increase of 59% year over year. Consequently, gross profit declined by 23% to $161.49 million compared to $208.47 million for the year ended May 31, 2025. The company booked gross profit of $60.81 million for the fourth quarter versus a gross loss of $7.55 million reported for the similar quarter of 2025.

Other Income increased by 500% to close at $27.91 million (2025: $4.66 million). Notably, the fourth quarter result included $13 million of other income arising from the fair value adjustment of investment property.

Consequently, Total Income declined by 11% from $213.12 million in 2025 to $189.40 million in the period under review.

Expenses for the year ended May 31, 2026, amounted to $128.93 million, a 9% increase relative to $117.87 million reported in 2025.

Operating Profit for the year ended May 31, 2026, amounted to $60.47 million, a 37% decline relative to $95.25 million reported in 2025. Operating Profit for the fourth quarter amounted to $47.45 million versus an operating loss of $36.73 million in 2025.

Finance Costs totalled $19.40 million, a 103% increase from the corresponding period last year (2025: $9.55 million).

Pre-tax profit for the year ended May 31, 2026, amounted to $41.07 million, a 52% decline relative to $85.71 million reported in 2025. Pre-tax profit for the fourth quarter amounted to $36.27 million versus a pre-tax loss of $40.88 million in 2025.

Taxation for the year ended May 31, 2026, amounted to $6.68 million (2025: $3.52 million). As such, Net Profit for the year amounted to $34.39 million, a 58% decline from the $82.19 million reported in 2025. For the fourth quarter, Net Profit was $30.80 million versus a net loss of $40.88 million in 2025.

ENERGY highlighted, “This improvement reflects stronger project execution, higher conversion of previously secured opportunities into active projects, and the remobilization of projects that had experienced delays earlier in this financial year, partly due to Hurricane Melissa in October 2025.”

Consequently, Earnings Per Share for the year amounted to $0.026 (2025: EPS: $0.062), while Earnings Per Share for the quarter totalled $0.023 (2025: Loss per share: $0.031). The twelve-month trailing EPS was $0.026, and the number of shares used in these calculations was 1,316,324,120.

Notably, ENERGY’s stock price closed the trading period on July 14, 2026, at a price of $0.93 with a corresponding P/E ratio of 35.60x.

Balance Sheet Highlights

The company’s assets totalled $3.34 billion (2025: $3.26 billion), driven by an 18% increase in current assets from $449.68 million to $532.56 million.

Shareholder’s equity was $1.05 billion (2025: $1.02 billion), representing a book value per share of $0.80 (2025: $0.77).

Management noted that current liabilities rose 21% from $277.70 million to $336.33 million, partly reflecting the reclassification of a major bank loan from non-current to current liabilities as its remaining repayment term fell below twelve months, alongside working capital requirements tied to increased project activity.

Looking ahead, the Group reported that it has secured approximately $900 million in new contracts for execution during the 2026/27 financial year, while previously delayed major projects with an initial contract value of approximately $1.4 billion have been remobilized and are targeted for completion during the 2026/27 financial year, supporting Management’s expectation of continued revenue growth and improved profitability.

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