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 margin maintained at 30.2% and reported EBITDA up 28% year-over-year due to Globaltech claims resolution.

• Net profit after tax rose 84% to AUD 31 million, driven by exceptional litigation income, despite industry contraction and lower sales across all regions.

• Cash conversion remained robust at 96%, with net debt reduced to AUD 15 million and leverage ratio at 0.2x.

• Interim fully franked dividend of AUD 0.015 per share declared, consistent with prior year and capital management policy.

• Expanded market share in core, digital, and IMT segments, with strong SaaS growth and disciplined cost management.

Financial highlights

• Revenue declined 10% year-over-year to AUD 212 million, reflecting a 19% drop in global exploration activity, but increased 1% sequentially.

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

• Normalized NPAT-A at AUD 26.5 million, with normalized EPS at 4.3c, down 25% year-over-year.

• Operating cash flow conversion at 96%, with net assets up 10% year-over-year to AUD 607 million.

• Sensors and SaaS revenue comprised 66% of total, up from 64% year-over-year.

Outlook and guidance

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

• Three of five market indicators (supply/demand, commodity prices, M&A) are positive; exploration budgets and capital raisings expected to improve in FY26.

• Activity expected to remain steady in FY25, with improvement likely in FY26 as industry sentiment and exploration budgets recover.

• Continued focus on technology leadership, integrated solutions, and expansion into digital and mining production markets.