IMI (IMI) H1 2025 earnings summary

Executive summary

• Achieved 2% organic sales/revenue growth and 5% organic adjusted operating profit growth in H1 2025, with adjusted operating margin up 30bps and strong order intake from key sectors.

• Completed a £200 million share buyback, raised the interim dividend by 10%, and returned over £1 billion to shareholders since 2019.

• Recovered quickly from a significant cyber incident, limiting impact to temporary disruption and recognizing a one-off exceptional charge of £25.4 million.

• Strategic review of the Transport division is ongoing, with a focus on value optimization and margin improvement.

• On track for a fourth consecutive year of mid-single-digit organic revenue growth in 2025, with full-year guidance reconfirmed.

Financial highlights

• Organic revenue grew 2% year-over-year to £1,091m; adjusted operating profit up 5% to £198m, with margin up 30bps to 18.2%.

• Adjusted basic EPS increased 3% year-over-year to 56.1p, offsetting adverse FX and tax movements.

• Operating cash conversion was strong, up to 92% for 2024; adjusted operating cash flow up 21% year-over-year to £158m.

• Free cash flow was lower at £30m due to the cyber incident and a £26m loan to the UK pension scheme.

• Net debt rose to £738m, mainly due to the share buyback and pension loan; net debt/EBITDA at 1.4x.

Outlook and guidance

• Full-year adjusted basic EPS expected between 129p and 136p; operating margin guidance around 20%.

• Free cash flow of over £1 billion targeted over the next three years, with disciplined capital deployment.

• Interest charge forecast at £19m–£20m; tax rate at approximately 25%.

• FX expected to be a 1.5% headwind to profits for the full year.