Innovative Energy Group Limited (ENERGY)

Audited 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 $339.49 million compared to $321.21 million in the corresponding period last year. Investors should note that the comparative figures cover only the seven months from November 1, 2024 to May 31, 2025, being the period from the acquisition of the Group’s operating subsidiary, Innovative Energy Company DBA IEC SPEI Limited, and are therefore not directly comparable with the current twelve-month period.

Revenue was underpinned by a marked shift in mix. Solar project income fell to $183.67 million (2025: $316.10 million), while service and maintenance income rose to $101.71 million (2025: $3.64 million) and sale of product climbed to $54.10 million (2025: $1.47 million).

Direct costs amounted to $209.96 million (2025: $112.74 million), representing an increase of 86% year over year, driven mainly by project management costs of $88.29 million (2025: $39.36 million) and contractors’ costs of $55.53 million (2025: $60.43 million). Consequently, Gross Profit declined by 38% to $129.52 million compared to $208.47 million for the seven months ended May 31, 2025.

Administrative Expenses for the year ended May 31, 2026, amounted to $139.42 million, an 18% increase relative to $117.87 million reported in 2025. The largest line item was salaries and wages of $60.80 million (2025: $25.98 million), while the Group booked a foreign exchange gain of $9.69 million versus a loss of $10.39 million in the prior period, and an expected credit loss write-back of $13.10 million versus a charge of $18.34 million previously.

As a result, ENERGY recorded an Operating Loss of $9.89 million for the year, compared with an Operating Profit of $90.60 million in the prior period.

The Group recognised a Fair Value Gain on Investment Property of $13 million, following the March 2026 independent revaluation of its building at Unit 15, R1 Commercial Park, Kingston 10, from $47 million to $60 million.

Other Operating Income surged to $130.10 million (2025: $4.66 million). The dominant contributor was a $100 million related party loan write-off, arising from the decision by the directors of Innovative Energy Company Limited, St. Lucia, to forgive $100 million of the debt owed in connection with the acquisition of the subsidiary. Rental income contributed $6.91 million, reimbursement of expenses $6.68 million, and miscellaneous income $16.03 million.

Together, these items lifted the pre-financing result to $133.21 million, up 40% from $95.25 million.

Finance Costs totalled $20.85 million, a 118% increase from the corresponding period last year (2025: $9.55 million).

Pre-tax profit for the year ended May 31, 2026, amounted to $112.36 million, a 31% increase relative to $85.71 million reported in 2025.

Taxation for the year amounted to $5.03 million (2025: $3.52 million), comprising solely a deferred tax charge, with no current income tax provision booked for the year (2025: $4.64 million). Tax losses of approximately $256.3 million (2025: $247.9 million) remain available for set-off against future profits. As such, Net Profit for the year amounted to $107.33 million, a 31% increase from the $82.19 million reported in 2025.

On the impact of the October 2025 storm, the Group noted that Hurricane Melissa delayed execution on two major projects in St. Elizabeth and Montego Bay by approximately three months as customers prioritised restoration of their own facilities, and that during the period of reduced activity the subsidiary increased its focus on residential and smaller commercial projects, which contributed additional revenue. Project execution on the affected contracts has since resumed, with no material change to the underlying contracts or the total revenue expected from them.

Consequently, Earnings Per Share for the year amounted to $0.082 (2025: EPS: $0.144). The lower prior-year share count is the main reason the comparative EPS is higher despite lower absolute earnings; the weighted average number of shares was 1,316,324,120 for the current year versus 569,215,247 in the prior period. The twelve-month trailing EPS was $0.082.

Notably, ENERGY’s stock price closed on August 31, 2026, at $0.89 with a corresponding P/E ratio of 10.92x.

Balance Sheet Highlights

The Group’s assets totalled $3.34 billion (2025: $3.26 billion), driven by an 18% increase in current assets from $449.68 million to $530.89 million. Receivables and prepayments rose to $270.74 million from $159.76 million, while inventories declined to $239.76 million from $275.67 million. Cash and bank balances closed at $15.58 million (2025: $9.45 million).

Shareholders’ equity was $1.12 billion (2025: $1.02 billion), representing a book value per share of $0.85 (2025: $0.77). The accumulated deficit narrowed to $160.33 million from $267.66 million.

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