IMI Shares Steady On Organic Profit Growth; Reaffirms Full-Year Outlook

IMI plc (LON:IMI) shares are holding steady on Friday, after the specialist engineering firm released its H1 2025 interim results, showcasing a 5% organic operating profit increase.

The company reaffirmed its full-year guidance, signaling confidence in achieving its fourth consecutive year of mid-single-digit organic revenue growth.

The stock currently trades around 2,240.00p, reflecting positive market sentiment.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

IMI’s revenue for the first half stood at £1.091 billion, a slight 1% dip compared to £1.098 billion in H1 2024. However, stripping out currency effects and acquisitions, organic revenue climbed by a healthy 2%.

Adjusted operating profit rose to £198 million, a 1% increase year-on-year, with organic growth reaching 5%. The adjusted operating margin improved by 30 basis points to 18.2%, demonstrating enhanced profitability.

Profit before tax edged up 1% to £190 million. Adjusted basic earnings per share (EPS) saw a 3% increase to 56.1p, while the interim dividend per share was boosted by 10% to 11.0p, signaling management’s confidence in the company’s financial health.

Despite the positive adjusted figures, statutory operating profit declined by 10% to £158 million, impacting the statutory operating margin, which fell 160 basis points to 14.5%.

Free cash flow also took a hit, decreasing by 54% to £30 million, although adjusted operating cash flow showed a robust 21% increase to £158 million.

IMI remains optimistic about the remainder of the year, reiterating its full-year adjusted basic EPS guidance of between 129p and 136p.

The forecast incorporates an anticipated increase in full-year interest expense to £19-20 million due to the accelerated share buyback program.

A foreign exchange translation impact is projected to create a full-year headwind of around 1.5% on adjusted operating profit. The company stated that it successfully offset the direct impact of global tariffs in the first half and remains well-positioned to manage future developments.

Analyst Consensus & Price Targets

Analysts maintain a generally positive outlook on IMI, with a consensus target price of 2,282.00p, representing approximately 3.6% upside from the current trading level. 15 analysts rate IMI a “strong buy,” with a one-year price target ranging from 1,925p to 2,500p. The next quarter’s EPS is estimated at 0.56 GBX, with revenue expected to reach £1.09 billion.

Analyst Summary: Bull and Bear Cases