IMI (IMI) Q2 2026 earnings summary

Executive summary

• Achieved 5% organic revenue growth and 8% organic adjusted operating profit growth year-over-year in H1 2026.

• Adjusted operating cash flow increased by 32%, with free cash flow materially higher year-over-year.

• Over £300m returned to shareholders in H1, including £250m of a £500m share buyback and a 10% increase in the interim dividend.

• Full-year guidance reconfirmed, with expectations for a sixth consecutive year of mid-single digit organic revenue growth and adjusted EPS guidance of 136p–142p.

• Business transformation since 2019 has delivered a 10% EPS CAGR, underpinned by the One IMI operating model.

Financial highlights

• Revenue reached £1,159m, up 6% year-over-year and 5% organically from £1,091m in H1 2025.

• Adjusted operating profit rose to £217m, up 10% (8% organically) from £198m.

• Adjusted operating margin improved by 50bps to 18.7%; adjusted basic EPS up 13% to 63.4p.

• Cash conversion rate was 96%, up from 80% in the prior year; free cash flow at £171m, up 472%.

• Net debt/Adjusted EBITDA: 1.2x, improved from 1.4x.

Outlook and guidance

• Full-year guidance reconfirmed: mid-single digit organic revenue growth and adjusted EPS of 136p–142p.

• Adjusted operating margin expected to be flat to slightly up in 2026, with cyber security investments offsetting leverage.

• Guidance assumes Truflo Marine disposal in Q3 2026, stable Middle East shipments, and no material FX impact.

• Net interest charge expected at £20m; tax rate at 26.3%; weighted average shares at 239m post-buyback.