Imdex (IMD) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 revenue of AUD 445.3 million, up 8% year-over-year, outperforming a global exploration market that declined 5% in budgets and 24% in drilling activity.

• Normalized EBITDA reached AUD 131 million, up 7%, with a stable margin of 29.4% despite increased R&D and digital investment.

• Devico integration completed ahead of schedule, delivering AUD 70 million in revenue (up 14%) and revenue synergies above targets.

• Strong cash generation enabled accelerated debt repayment and a robust balance sheet, with net leverage at 0.3x normalized EBITDA.

• Expanded digital and integrated solutions, with 48% of top 250 customers using more than three products.

Financial highlights

• Group revenue increased 8% to AUD 445.3 million year-over-year; normalized EBITDA up 7% to AUD 131 million.

• Normalized NPAT-A at AUD 55.6 million, down 2% from PCP; normalized EPSA down 16% to 10.9c.

• Net debt at AUD 35 million, with accelerated paydown of a four-year AUD 120 million facility.

• Fully franked final dividend of AUD 0.013 per share, maintaining a 30% normalized NPAT payout ratio; full-year dividend of 2.8cps.

• Sensors and SaaS revenue grew to 64% of total revenue, up from 60% in FY 2023.

Outlook and guidance

• No further decline in market activity expected for 1H 2025; steady activity anticipated.

• Consensus expectations for FY 2025 remain broadly comfortable, with only minor downside risk if conditions remain unchanged.

• Exploration budgets and capital raisings show early signs of recovery, especially in base metals.

• Long-term fundamentals for exploration remain strong, with significant headroom for growth as exploration budgets are well below 2012 peak.

• Growth expected from market share gains, margin expansion, and digital/IMT business units.