IMI (IMI) Q1 2025 TU earnings summary

Executive summary

• Full-year guidance for 2025 reaffirmed, expecting mid-single-digit organic revenue growth and EPS between GBP 1.29 and GBP 1.36.

• Group margins improved in Q1 2025, supported by high-value solutions, pricing power, and restructuring benefits, despite a 3% year-over-year organic revenue decline.

• Strong momentum in process automation, with orders up 7% organically and the order book 13% higher than March 2024.

• Strategic review announced for the transport sector, which represented 8% of 2024 revenue, to assess its ability to meet financial targets.

• Adjusted basic EPS has grown at an 11% CAGR over the last five years.

Financial highlights

• Process automation aftermarket organic orders up 19% in Q1 2025; overall process automation orderbook up 13% year-over-year.

• Over £650m returned to shareholders since 2019; £200m share buyback underway.

• Climate control segment delivered 4% organic growth in Q1, driven by demand for energy-efficient products.

• Life science and fluid control segments were flat; industrial automation and transport were lower year-over-year.

• Exchange rates as of April 2025 expected to negatively impact 2025 revenue and adjusted operating profit by ~2%.

Outlook and guidance

• Guidance for mid-single-digit organic revenue growth and EPS of GBP 1.29–1.36 for 2025 reaffirmed.

• Process automation expected to deliver high single-digit shipment growth in 2025.

• Industrial automation expected to be flat for the year, with recovery from cyber incident underway.

• Life sciences forecasted flat for the year, with no recovery assumed.

• Climate expected to deliver mid-single-digit growth despite tougher comps.