Imdex (IMD) H1 2025 earnings summary

Executive summary

• Revenue for the half-year was AUD 212 million, down 10% year-over-year but up 1% sequentially, with EBITDA reported at AUD 73 million, up 28% year-over-year, and normalized EBITDA at AUD 64 million, down 10% year-over-year but up 7% sequentially.

• EBITDA margin remained strong at 30.2%, reflecting disciplined cost management and operational resilience.

• Net profit after tax rose 84% to AUD 31 million, driven by exceptional litigation income, despite revenue decline.

• Net debt reduced to AUD 15 million, with robust operating cash flow conversion at 96% and leverage ratio at 0.2x.

• Interim fully franked dividend of 1.5 cents per share declared, consistent with prior year and capital management policy.

Financial highlights

• Revenue declined 10% year-over-year to AUD 212 million, but increased 1% sequentially.

• Reported EBITDA rose 28% year-over-year; normalized EBITDA fell 10% year-over-year but improved 7% sequentially.

• Reported NPAT at AUD 31 million; normalized NPAT at AUD 21.9 million after adjusting for Globaltech settlement.

• Normalized EPS at 4.3 cents, down 24.6% year-over-year.

• Net assets increased 10% year-over-year to AUD 607 million.

Outlook and guidance

• Market fundamentals for copper and gold remain strong, with long-term demand for battery metals underpinned by decarbonization.

• Activity expected to remain steady in FY25, with improvement likely in FY26 as industry fundamentals and short-term drivers indicate increased activity.

• Exploration budgets expected to rise in Australia for FY25, with improved visibility in other regions anticipated in 1Q25.

• Continued focus on technology leadership, integrated solutions, and expansion into digital and IMT businesses.

• On track to achieve net cash position by FY26.