Intertek Group (ITRK) H2 2025 earnings summary

Executive summary

• Achieved third consecutive year of double-digit EPS growth, with EPS up 10.1% at constant rates and strong margin progression of 90 basis points year-over-year.

• Revenue grew 4.3% at constant currency to GBP 3.4 billion, with robust performance across most divisions and strong cash conversion at 110%.

• Returned GBP 602 million to shareholders and invested GBP 300 million in growth initiatives, including CapEx and M&A.

• Maintained a progressive dividend policy with a 65% payout ratio and demonstrated a strong track record in value-accretive M&A.

• Continued execution of the AAA differentiated strategy, focusing on high-growth, high-margin sectors and value-accretive acquisitions.

Financial highlights

• Operating profit rose 9.3% at constant rates to GBP 620 million; operating margin reached 18.1%, up 90 basis points.

• Diluted EPS was 253.5 pence, up 10.1% at constant rates.

• Adjusted cash from operations was GBP 762 million; adjusted free cash flow was GBP 352 million, both down from 2024 peak due to lower working capital change and higher CapEx.

• ROIC was 21.3%, with organic ROIC up to 23.0%.

• Dividend per share CAGR (2015-2025) was 12.2%.

Outlook and guidance

• 2026 guidance: mid-single-digit like-for-like revenue growth, further margin progression, strong earnings growth, and robust cash generation.

• Net finance costs expected at GBP 71-72 million, effective tax rate at 25.5%-26.5%, CapEx at GBP 150-160 million, and net debt at GBP 930-980 million.

• Margin target remains above 18.5%, with continued focus on disciplined capital allocation and shareholder returns.