Imdex (IMD) H1 2026 earnings summary

Executive summary

• Achieved record first-half performance with all-time high revenue, normalized EBITDA, and NPATA, driven by market share gains, increased exploration activity, and technology leadership across all regions and product lines.

• Revenue increased 16% year-over-year to $246.6 million for the half-year ended 31 December 2025, but net profit after tax declined 15% to $26.2 million due to higher expenses and integration costs.

• Strategic focus on technology leadership, market expansion, and integrated solutions, with strong adoption of AI-enabled products and robust growth in Datarock and mining technologies.

• Completed and announced multiple acquisitions, including Earth Science Analytics, Datarock, ALT, MSI, and Krux, enhancing AI-driven geoscience and expanding into adjacent markets.

• Integration expenses of $3.8 million recognized as significant items, with further acquisitions announced post-period.

Financial highlights

• Revenue reached AUD 247 million (or $246.6 million), up 16% year-over-year, with sensors, services, and software comprising 68% of group revenue and growing 20%.

• Normalized EBITDA increased 22% to AUD 78 million, with margins expanding to 32%.

• Net profit after tax declined 15% to $26.2 million, while normalized NPAT grew 32% to $29 million; basic EPS fell to 5.12 cents.

• Record normalized operating cash flow of AUD 67 million and strong cash conversion at 86%.

• Interim fully franked dividend of 1.7 cents per share, a record payout at 30% of normalized NPAT.

Outlook and guidance

• Americas remain the strongest growth engine, with record revenue and improving funding conditions, especially in the US and South America.

• Exploration budgets anticipated to increase by double digits in calendar 2026, with industry signals supporting higher market growth and a step-up in activity expected in 2H26.

• Ongoing investment in R&D and technology to sustain growth and innovation, leveraging recent acquisitions and expanded product offerings.

• EBITDA margin guidance remains around 30% for FY26, with ongoing investment in labor and integration of acquisitions expected to create some margin pressure.

• Seasonality expected, with Q4 typically stronger as the upcycle resumes.