Intertek Group (LON:ITRK) executives highlighted margin expansion, strong earnings growth, and continued investment and shareholder returns as the testing, inspection and certification provider reported full-year 2025 results and outlined expectations for 2026.
2025 results: revenue growth translated into faster earnings growth
Chief Executive Officer André Lacroix said 2025 marked the third consecutive year of double-digit EPS growth, with the company converting 4.3% revenue growth into 10.1% EPS growth alongside 90 basis points of margin progression. Operating margin was 18.1% for the year, up 90 basis points year-on-year at constant currency, while cash conversion was 110%.
On cash flow, Deasy said adjusted cash from operations was £762 million, down from a 2024 peak, and adjusted free cash flow was £352 million, reflecting lower cash generation from operations, higher interest and borrowing costs, higher cash tax outflows, and increased capital expenditures.
Divisional performance: consumer products and industry infrastructure led growth
Lacroix reviewed performance by division (at constant currency):
- Consumer Products: Revenue of £983 million, up 6.2% year-on-year, with 6.3% like-for-like growth. Operating profit rose 11% to £299 million and margin increased 250 basis points to 30.4%. Management expects mid-single-digit like-for-like growth in 2026.
- Corporate Insurance: Revenue of £514 million, up 6.8%. Operating profit was £116 million, up 3%, with a “slight margin reduction” driven by mix and growth investment after a strong 2024. The company expects high single-digit like-for-like growth in 2026.
- Health & Safety: Revenue of £347 million, up 5.5%, with 2.4% like-for-like growth. Operating profit increased 2% to £45 million; margin was 13%, slightly down year-on-year due to mix. Lacroix said chemical and pharma was down following strong prior-year comparisons and temporary client project delays. Management expects low single-digit like-for-like growth in 2026.
- Industry & Infrastructure: Revenue of £858 million, up 5.3%, with 4.7% like-for-like growth. Operating profit increased 24% to £95 million and margin improved 170 basis points on operating leverage, productivity gains and mix. Management expects mid-single-digit like-for-like growth in 2026.
- World of Energy: Revenue of £729 million, down 1.3% from 2024. Operating profit was £63 million, down 15%, with weakness attributed to a baseline effect after strong growth in prior years and a temporary reduction in investment by several transportation technology clients. The company expects low single-digit like-for-like growth in 2026.
Guidance and the path to mid-single-digit growth in 2026
Management guided to mid-single-digit like-for-like revenue growth in 2026, along with further margin progression, strong earnings growth and strong cash generation. Lacroix said the company entered 2026 “with confidence,” pointing to three-year performance since the launch of its “AAA” strategy, including 240 basis points of margin expansion and £2.3 billion of cumulative operating cash flow.
In Q&A, UBS asked why the company’s reported November-December exit rate of 1.9% organic growth could translate into mid-single-digit growth for 2026. Lacroix cited a “very demanding base” in the world of energy, noting that division delivered 8.7% like-for-like growth in 2023 and 8% in 2024, with particularly strong November-December comparatives. Excluding world of energy, he said like-for-like growth was 4.7% in November-December and 5.4% for full-year 2025. He also said corporate assurance typically slows in November-December due to auditor capacity constraints, adding that backlog was strong and the company is investing to expand auditor capacity.
Restructuring, acquisitions, and capital allocation
Lacroix said margin improvement in 2025 benefited from portfolio mix, fixed-cost leverage, productivity improvements, restructuring programs, and “accretive investments,” partially offset by inflation and growth investments. He provided annual savings from the restructuring program of £13 million in 2023, £11 million in 2024, and £6 million in 2025, with an expected £8 million benefit in 2026 from restructuring undertaken in 2025. On the call, management described actions in underperforming units, including cost reductions in transportation technology and consumer products, further overhead streamlining, management-layer reductions, and exiting some sites that were “starting to destroy value.” The company declined to guide on restructuring charges for 2026, describing a case-by-case approach.
On M&A, Lacroix said Intertek completed seven acquisitions in recent years, describing them as value accretive and reporting that the acquired businesses delivered an aggregate 34% margin in 2025. He cited two recent deals: Aerial PV, a drone-based inspection business to strengthen the solar energy value proposition, and QTEST in Colombia, to expand Intertek’s electrical network in Latin America.
Asked about share buybacks and leverage, Lacroix said the company’s prior buyback was conducted when leverage was below the target range, while it is now at 1.3x net debt to EBITDA, the bottom end of its stated target range of 1.3 to 1.8. He said the company sees increasing opportunities to create value through acquisitions and wants to maintain “firepower,” while reiterating it would reconsider returning excess cash if leverage fell below the minimum threshold.
Other themes: China, tariffs, and AI
Lacroix said Intertek delivered 5.4% like-for-like growth in China in 2025, in line with a three-year like-for-like rate of 5.6%, and described its China portfolio as diversified with scale positions across business lines.
On U.S. tariffs and potential supply chain shifts, Lacroix said clients’ “overriding position” was “wait and see,” given the cost, risk, and time required to reengineer supply chains. He said Intertek launched SupplyTek in 2025 to help clients assess supply chain options in response to changing economics and routes.
On artificial intelligence, Lacroix said Intertek is investing in AI both to develop external assurance offerings—highlighting an “independent end-to-end AI assurance program” called AI Square—and to improve internal productivity and decision-making. He cited potential applications including lead qualification, quality reviews of test and audit reports, resource scheduling, and accelerating global market access protocols, as well as using tools to review contracts and support M&A due diligence.
For 2026, Deasy’s financial guidance included net finance costs of £71 million to £72 million (excluding FX), an effective tax rate of 25.5% to 26.5%, minority interest of £21 million to £22 million, CapEx of £150 million to £160 million, and net debt guidance of £930 million to £980 million prior to material FX or M&A movements.
About Intertek Group (LON:ITRK)
Intertek is a leading Total Quality Assurance provider to industries worldwide.
Our network of more than 1,000 laboratories and offices in more than 100 countries, delivers innovative and bespoke Assurance, Testing, Inspection and Certification solutions for our customers’ operations and supply chains.
Intertek is a purpose-led company to Bring Quality, Safety and Sustainability to Life. We provide 24/7 mission-critical quality assurance solutions to our clients to ensure that they can operate with well-functioning supply chains in each of their operations.
Our Customer Promise is: Intertek Total Quality Assurance expertise, delivered consistently, with precision, pace and passion, enabling our customers to power ahead safely.
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