IMI reiterates full-year guidance after strong first-half growth

(Sharecast News) - IMI reiterated its full-year guidance on Friday after reporting higher first-half revenue, profits and margins, supported by demand across its automation and life technology businesses. The FTSE 100 engineering group continues to expect adjusted basic earnings per share of between 136p and 142p for 2026, alongside mid-single-digit organic revenue growth.

IMI also expects its full-year adjusted operating margin to be flat to slightly higher, with operating leverage offset by previously announced investment in cyber security.

Revenue for the six months ended 30 June rose 6% year-on-year to £1.16bn, representing organic growth of 5%. Adjusted operating profit increased 10% to £217m, while the adjusted operating margin expanded 50 basis points to 18.7%.

Statutory pre-tax profit rose 17% to £190m, while adjusted pre-tax profit was 10% higher at £209m.

Adjusted basic earnings per share increased 13% to 63.4p, while free cash flow surged to £171m from £30m.

The interim dividend was lifted 10% to 12.1p per share. IMI also completed £250m of its £500m share-buyback programme during the half.

Chief executive Roy Twite said: "The strength of our first half performance gives us confidence in our outlook for 2026. We remain on track to deliver our sixth consecutive year of mid-single digit organic revenue growth."

IMI said its guidance assumed that planned Middle East shipments could be completed by year-end and that the disposal of Truflo Marine would close in the third quarter. It added that exchange rates were not expected to have a material impact on full-year revenue or profit.

The stock was down 0.3% at 2,936p by the close of play.

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