Innovative Energy Group's Pipeline Push

Chairman of Innovative Energy Group (IEG) Nigel Davy is expecting to see improvements in the company’s profitability at end of financial year (FY) 2026/27, as the accelerates the roll-out of new projects in its pipeline.

 

In a report to shareholders on the company’s financial performance in FY2025/26, Davy shared that the renewable energy supplier has secured approximately $900 million in new contracts for execution during the 2026/27 financial year.  

 

“In addition, previously delayed major projects with an initial contract value of approximately J$1.4 billion have been remobilised and are targeted for completion during the 2026/27 financial year. The execution of these projects provides increased revenue visibility and supports management’s expectation of continued revenue growth and improved profitability during the 2026/27 financial year,” he told shareholders.

 

The delay in projects to which the chairman referred resulted in the company’s turnaround in fourth-quarter results but a lower net comprehensive income for the full year. These delays, he said, were due to the passage of Hurricane Melissa on October 6, 2025, and supply chain challenges.

 

For the year ending May 31, 2026, net profit after tax declined by over 50 per cent to $34.39 million, down from $82.19 million in the previous year. In the fourth quarter IEG posted net profit after tax of $30.80 million compared with a net loss of $40.88 million at year end 2024/25.

 

“So, we had $70 million turning around,” Davy told Amber News in an interview, commenting to the fourth-quarter results.

 

While the company increased revenues on during the fourth quarterly and over the year, its cost of sales line also increased. Davy credited this to rising labour and raw material costs.

 

“In the cost of transport primarily because for most of our products, our input comes from China. And we have seen close to a 30 per cent increase in transportation costs,” he stated, pointing to ongoing wars in the Middle East.

 

Another contributor to the reduction in profits was the increase in finance costs.

 

“If you look at the P&L, you can see those impacts, and those finance costs would have been to support the projects that we would have started in the year. So, during this fiscal year, you should see those costs drop significantly,” he explained.

 

At the year end, IEG was in the process of executing the MBJ Airport project and the National Irrigation Commission’s project in Essex Valley. When asked what new projects the company will execute in the current fiscal year, Davy declined to share while noting that the clients have not yet disclosed such information publicly.

 

However, he revealed that the company will engage in repairs at the Sangster International Airport due to damage from Hurricane Melissa.

 

“So, the rebuilding of the carport project at Sangster is a significant chunk of that $900 million,” Davy informed Amber News.

 

“But there are a couple of others which I can't name because they are public entities and they have not made those announcements yet. Those are for the new projects,” the IEG chairman reiterated.

 

“You are going to see a significant uptick in terms of profitability from those projects, and that results from the fact that we had acquired most of the material for those projects. So what's left is primarily labor and our margins.”

 

IEG records revenues upon the completion of projects, which are then invoiced to its clients. For the fourth quarter, revenues jumped by 315 per cent to $122.55 million, while for the financial year revenues rose by 6 per cent.

 

“The group continued to strengthen its financial position during the quarter, with Shareholders’ Equity increasing by approximately 3.4 per cent year-over-year, from J$1.02 billion as of May 31, 2025, to J$1.05 billion as of May 31, 2026,” Davy wrote to shareholders.

 

Total assets amounted $3.34 billion, up from $3,26 billion in 2025. The company’s cash position improved from $9.45 million to $17.68 million as at May 31, 2025.

-JS