IMI (IMI) Q4 2025 earnings summary

Executive summary

• Achieved fifth consecutive year of mid-single-digit organic revenue growth, with 5% organic sales growth and 8% organic adjusted operating profit in 2025.

• Operating margin reached 20% for the first time, up 30 basis points year-over-year and 580 basis points since 2019.

• Free cash flow rose to GBP 290 million, supporting a GBP 500 million share buyback and a proposed 10% dividend increase.

• Strategic focus on energy, automation, and healthcare megatrends, with significant progress in high-margin aftermarket and innovation.

• Guiding for a sixth consecutive year of mid-single-digit organic revenue growth in 2026, with adjusted EPS expected between GBP 1.36 and GBP 1.42.

Financial highlights

• Revenue reached GBP 2,304 million, up 5% organically from GBP 2,210 million the previous year.

• Adjusted operating profit increased to GBP 460 million, up 8% organically.

• Adjusted basic EPS rose 8% to 132.3 pence.

• Free cash flow increased to GBP 290 million; GBP 281 million returned to shareholders.

• Net debt reduced to GBP 533 million; net debt/EBITDA at 1x.

Outlook and guidance

• Targeting sixth consecutive year of mid-single-digit organic revenue growth in 2026.

• Adjusted EPS expected between GBP 1.36 and GBP 1.42 for 2026.

• Process Automation sales guided to mid- to high-single-digit growth; Industrial Automation flat to modestly higher.

• Margins expected to remain flat or slightly up, with cybersecurity investments offset by operating leverage.

• Interest expense projected to rise to GBP 20 million; tax rate to increase to 26.3%.