Intertek Group (ITRK) H1 2025 earnings summary

Executive summary

• Delivered ninth consecutive half-year of mid-single-digit like-for-like revenue growth and fifth consecutive half-year of double-digit EPS growth at constant currency, maintaining a track record of value creation and progress toward medium-term targets.

• Strong H1 2025 performance with 4.5% like-for-like revenue growth at constant currency, driven by Consumer Products (+7.5%/+7.9%), Corporate Assurance (+8.2%), Health and Safety (+3.2%), and Industry and Infrastructure (+3.0%).

• High cash conversion of 118% and continued disciplined, accretive capital allocation, including a progressive dividend policy with a 65% payout.

• Interim dividend increased by 6.3% to 57.3p, in line with EPS growth and payout policy.

• Recent acquisitions in high-growth, high-margin segments are performing well, with integration of TESIS in Brazil and Thesys on track.

Financial highlights

• Revenue: £1,672.7m, up 4.5% at constant currency and 0.2% at actual rates; like-for-like revenue also up 4.5%.

• Adjusted operating profit: £276.3m, up 9.7% at constant currency; operating margin 16.5%, up 80bps.

• Adjusted diluted EPS: 111.5p, up 12.6% at constant currency and 6.3% at actual rates.

• Adjusted cash flow from operations £265.8m; free cash flow £56.0m, reflecting higher capex and acquisition outflows.

• Net debt £800.6m, net debt/EBITDA at 1.0x after £187m share buyback.

• ROIC: 22.5%, up 170bps.

Outlook and guidance

• FY 2025 expected to deliver mid-single-digit like-for-like revenue growth at constant currency, with high-single-digit growth in Consumer Products and Corporate Assurance, and low-single-digit in other divisions.

• Targeting year-on-year margin progression, strong free cash flow, and capex investment of £135–145m.

• Net debt guidance (excluding FX/M&A) £820–£870m; effective tax rate 25–26%.

• Currency volatility expected to reduce full-year revenue by 350bps and earnings by 500bps if current rates persist.