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, technology adoption, and increased exploration activity across all regions.

• Strategic focus on integrated solutions, digital expansion, and adjacent market entry, supported by significant acquisitions including Earth Science Analytics, Datarock, ALT, MSI, and Krux.

• Datarock business grew 90% year-over-year, reflecting robust demand for AI-enabled geological interpretation.

• Net profit after tax declined 15% to $26.2 million due to higher expenses and integration costs, despite revenue growth.

• Basic earnings per share fell to 5.12 cents from 6.05 cents in the prior period.

Financial highlights

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

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

• Normalized NPAT grew 32% to $29 million; NPATA was $34 million.

• Record normalized operating cash flow of $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.

• Ongoing investment in R&D and technology to sustain growth and innovation, with capital expenditure guidance for FY26 at $65–$70 million.

• 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.