UK's IMI beats H1 revenue expectations helped by rising energy demand
UK's IMI beats H1 revenue expectations helped by rising energy demand
Overview
UK fluid and motion control firm's H1 revenue rose 6%, beating analyst expectations
Adjusted basic EPS for H1 rose 13% yr/yr
Company completed £250 mln of planned £500 mln share buyback and raised interim dividend by 10%
Outlook
IMI expects full-year adjusted basic EPS to be between 136p and 142p
Company expects adjusted operating margin to be flat to slightly up in 2026
IMI expects to manage inflationary pressures through cost efficiencies and price increases
Result Drivers
ENERGY AND AUTOMATION DEMAND - Co said growth was supported by strong demand in Nuclear, Power, LNG and automation markets, benefiting from rising energy demand and electrification
AFTERMARKET AND DATA CENTRE ORDERS - High-margin aftermarket and data centre orders rose, with £18 mln in data centre orders and aftermarket orders up 7% organically
MARGIN EXPANSION AND PRODUCTIVITY - Adjusted operating margin rose 50bps, driven by productivity improvements, operating leverage and continuous improvement initiatives
Company press release: ID:nRSe6474Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | GBP 1.16 bln | GBP 1.14 bln (3 Analysts) |
H1 Adjusted Operating Profit | Beat | GBP 217 mln | GBP 214.76 mln (2 Analysts) |
H1 Adjusted Pretax Profit | Beat | GBP 209 mln | GBP 197 mln (1 Analyst) |
H1 Adjusted Operating Margin |
| 18.70% |
|
H1 Operating Margin |
| 17.30% |
|
H1 Operating Profit |
| GBP 201 mln |
|
H1 Pretax Profit |
| GBP 190 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Imi PLC is GBp3,240.00, about 10% above its July 30 closing price of GBp2,946.00
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)