eps diluted
136–142 $per share
FY 2026
official guidance
IMI PLC
Last · LSE£30.84-0.08 (-0.26%)stale · yahoo · 53h ago
Market cap£7.2B234.8M sh
P/E · TTM22.8fwd 19.9 · eps 1.35
Beta1.01vs S&P 500
Div yield1.14%annual · TTM
52w range
£22.44£32.02
Volume212.5Ksession
| Revenue | £2.3B |
|---|---|
| Operating income | £422.4M |
| Net income | £309.9M |
| Free cash flow | £345.8M |
| Operating margin | 18.3% |
| Net margin | 13.5% |
| Return on equity | 27.9% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Execution is strong, but unchanged guidance and several unquantified or externally dependent growth claims do not create a clean buy signal.
Hold: IMI delivered a strong H1—5% organic revenue growth, 8% organic adjusted operating-profit growth, 18.7% margin, 96% cash conversion and £171m free cash flow—but left FY2026 adjusted EPS guidance unchanged at 136p–142p. Power, nuclear, LNG, data centres and Aftermarket demand support the long-term case, yet the stock still faces a tougher H2 comparison, a residual £30m Middle East shipment risk, cybersecurity investment and unresolved valuation pressure around M&A.
Themes
- H1 2026 Results
- Process Automation
- Aftermarket Growth
- Nuclear Orders
- Data Centres
- Middle East Risk
Near term
H2 delivery against the 136p–142p FY2026 EPS range, with management expecting the usual 45%/55% H1/H2 EPS split excluding Truflo Marine.
Middle East shipments remain on plan, but management still acknowledges up to £30m of risk if planned deliveries are delayed.
Industrial Automation enters a tougher H2 comparator after prior-year cyber-related catch-up; its 60-day order average was only about 2% higher, with Europe flat and Germany weak.
Truflo Marine disposal timing and the impact of its assumed Q3 completion could distort reported EPS weighting.
Data-centre orders reached £18m in H1 versus £6m last year, but revenue conversion is lumpy and management would only say the business is holding its own rather than gaining share.
Longer term
Process Automation has attractive aftermarket economics: aftermarket orders rose 7% overall, with nuclear aftermarket up 33%, and the installed base has grown to roughly 206,000 severe-service valves.
Energy exposure is increasingly important: conventional-power orders doubled to £64m, nuclear new-construction orders were £51m including a £48m multi-year contract, and LNG orders rose 56%. However, the nuclear order is conventional rather than SMR, while SMR upside remains unproven.
The 45% aftermarket mix, strong installed base and stated approximately 30% medium-term profit drop-through support continued margin expansion; management still sees a path toward roughly 22% margin over five years absent major reinvestment or M&A dilution.
Growth Hub orders rose 22% to £78m, but conversion into material revenue and earnings remains to be demonstrated.
Transport improved materially, including 8% organic revenue growth and world-class quality metrics, but its strategic review remains unresolved and could change the portfolio structure.
Capital returns are supportive: £250m of the £500m buyback was completed by June, alongside a 10% interim-dividend increase, while leverage remained modest at 1.2x net debt/adjusted EBITDA.
Red flags
The strong H1 did not prompt an EPS upgrade; management cited unusually weak prior-year H1 comparatives, a very strong prior-year H2, Middle East uncertainty, tariffs and difficult German industrial production.
Management declined to claim market-share gains in data centres despite the sharp order increase, limiting confidence in the durability of that opportunity.
SMR positioning was described as being well placed but no customer, contract, timing or revenue opportunity was disclosed.
M&A is becoming harder to underwrite: management acknowledged competing bids with day-one cash returns below 3% and did not offer a near-term solution beyond strict return discipline and continued relationship-building.
Downstream oil and petrochemical new construction remains weak, with management not expecting a major recovery; the offset is largely aftermarket upgrades rather than a cyclical rebound.
Cybersecurity investment continues to offset operating leverage, keeping FY2026 margin guidance at flat to slightly up despite 8% H1 profit growth.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings transcripts
- Issuer IR
H1 2026 earnings call transcript
IMI PLC
- Issuer webcast
View Half Year Results 2026 Webcast
IMI PLC
- Issuer IR
Download Interim Management Statement May 26 Transcript
IMI PLC
- Issuer IR
Download Full-year results 2025 Transcript
IMI PLC
- Issuer IR
H1 2025 earnings call transcript
IMI PLC
- Issuer IR
H1 2025 conference transcript
IMI PLC
Documents
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