IMI (LON:IMI) Posts Earnings Results

Key Points

• IMI reported strong results with 5% organic sales growth, 8% organic adjusted operating profit, adjusted EPS up ~8% and a maiden 20% operating margin supported by 96% cash conversion.
• The board is deploying cash aggressively — announcing a further £500m share buyback and a 10% final dividend increase — while net debt has fallen to £533m (≈1x EBITDA).
• Management expects mid‑single‑digit organic revenue growth for 2026 and adjusted EPS of £1.36–£1.42, but near‑term risks include a weak Transport division, the planned Truflo Marine disposal and higher cybersecurity spend that will curb margin upside.

IMI (LON:IMI - Get Free Report) released its quarterly earnings results on Friday. The company reported GBX 132.30 earnings per share (EPS) for the quarter, Digital Look Earnings reports. IMI had a return on equity of 18.11% and a net margin of 10.92%.

Here are the key takeaways from IMI's conference call:

• IMI reported another strong year with 5% organic sales growth, 8% organic adjusted operating profit, an adjusted basic EPS increase of 8% and a milestone 20% operating margin for the first time, supported by 96% cash conversion.
• The board is deploying cash aggressively to shareholders and growth, announcing a further £500m share buyback, a 10% increase to the final dividend and continued bolt‑on M&A while net debt has fallen to £533m (net debt/EBITDA ~1x).
• Management expects a sixth consecutive year of mid‑single‑digit organic revenue growth in 2026 with adjusted EPS guidance of £1.36–£1.42, supported by a strong Process Automation order book, aftermarket expansion and Growth Hub innovation.
• Areas of near‑term risk include a weak Transport division (organic revenue down 6%) under strategic review, the planned disposal of Truflo Marine in mid‑2026 and increased cybersecurity investment that will suppress margin upside this year.

IMI Stock Performance

IMI stock traded up GBX 52 during trading on Friday, reaching GBX 2,804. 2,239,352 shares of the stock were exchanged, compared to its average volume of 3,505,186. IMI has a twelve month low of GBX 1,555.96 and a twelve month high of GBX 3,848. The company has a current ratio of 1.20, a quick ratio of 0.80 and a debt-to-equity ratio of 93.92. The company has a market capitalization of £6.90 billion, a P/E ratio of 30.05, a price-to-earnings-growth ratio of 1.12 and a beta of 1.05. The stock has a 50 day simple moving average of GBX 2,727.32 and a 200-day simple moving average of GBX 2,486.68.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Panmure Gordon reissued a "buy" rating and issued a GBX 2,760 price target on shares of IMI in a research report on Tuesday, November 25th. Berenberg Bank upped their price target on shares of IMI from GBX 2,550 to GBX 2,900 and gave the company a "buy" rating in a report on Thursday, November 6th. Finally, JPMorgan Chase & Co. raised their price target on IMI from GBX 2,850 to GBX 2,960 and gave the company an "overweight" rating in a research report on Thursday, December 4th. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, IMI currently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 2,670.71.

Key Stories Impacting IMI

Here are the key news stories impacting IMI this week:

• Positive Sentiment: IMI reported strong FY25 revenue and profit growth — revenues topped c.£2.3bn and profits surged, with quarterly EPS at GBX 132.30 and FY25 EPS up ~8%, underscoring margin improvement and solid ROE. This underpins near-term earnings momentum. Another strong performance at IMI plc as revenues top £2.3bn and profits surge
• Positive Sentiment: Board has launched a £500m share buyback and raised the payout — a shareholder-return program that reduces share count and supports EPS, often viewed positively by the market. IMI launches £500 mln buyback as 2025 earnings per share rise 8%
• Positive Sentiment: Analyst backing: Jefferies reiterated a Buy and set a 3,185p target, citing strong FY25 delivery and underappreciated FY26 earnings power — this provides third‑party validation of upside. IMI: Strong FY25 Delivery, Buyback Upside...
• Positive Sentiment: Management outlook: IMI expects 2026 organic revenue growth driven by resilient automation demand, suggesting sustained underlying market strength into the year. UK's IMI projects 2026 organic revenue growth
• Neutral Sentiment: Earnings materials and conference call are available for deeper read — call transcript and slide deck provide detail on segment performance, cash flow and buyback timing for investors who want to dig in. Q4 2025 Earnings Call Transcript View Slide Deck
• Neutral Sentiment: Note: a separate article covers Ayala’s IMI (Philippines) returning to profitability — likely a different corporate entity and not directly tied to LON:IMI; investors should not conflate the two. Ayala’s IMI returns to profitability

About IMI

IMI plc is a specialist engineering company operating in fluid and motion control markets. We combine our deep engineering knowledge with strong applications expertise to develop solutions for the most acute industry problems. We help our customers become safer, more sustainable and more productive. IMI employs around 10,000 people, has manufacturing facilities in 19 countries and operates a global service network. The Company is listed on the London Stock Exchange and is a constituent of the FTSE4Good Index.

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