IMI (LON:IMI) Releases Quarterly Earnings Results

IMI (LON:IMI) posted its earnings results on Friday. The company reported GBX 132.30 EPS for the quarter, Digital Look Earnings reports. IMI had a return on equity of 24.91% and a net margin of 14.33%.

Here are the key takeaways from IMI’s conference call:

• IMI reported another strong year with 5% organic sales growth, 8% organic adjusted operating profit, an adjusted basic EPS increase of 8% and a milestone 20% operating margin for the first time, supported by 96% cash conversion.
• The board is deploying cash aggressively to shareholders and growth, announcing a further £500m share buyback, a 10% increase to the final dividend and continued bolt‑on M&A while net debt has fallen to £533m (net debt/EBITDA ~1x).
• Management expects a sixth consecutive year of mid‑single‑digit organic revenue growth in 2026 with adjusted EPS guidance of £1.36–£1.42, supported by a strong Process Automation order book, aftermarket expansion and Growth Hub innovation.
• Areas of near‑term risk include a weak Transport division (organic revenue down 6%) under strategic review, the planned disposal of Truflo Marine in mid‑2026 and increased cybersecurity investment that will suppress margin upside this year.

IMI Trading Up 1.8%

Shares of IMI opened at GBX 2,802 on Friday. The firm has a market capitalization of £6.90 billion, a price-to-earnings ratio of 30.03, a PEG ratio of 1.12 and a beta of 1.05. The company has a debt-to-equity ratio of 58.04, a current ratio of 1.50 and a quick ratio of 0.80. IMI has a 1-year low of GBX 1,555.96 and a 1-year high of GBX 3,848. The company has a 50-day moving average of GBX 2,733.92 and a 200 day moving average of GBX 2,491.73.

Key Headlines Impacting IMI

Here are the key news stories impacting IMI this week:

• Positive Sentiment: Board ups share buyback to £500m, signalling confidence in cash generation and boosting EPS accretion and ROIC expectations. IMI posts improved performance and increases buyback to £500mn
• Positive Sentiment: Company returned to net profit in 2025 (reported ~$13.5m), reversing prior losses and removing a key overhang for the stock. IMI returns to profit, earns $13.5M in 2025
• Positive Sentiment: FY‑25 revenue topped £2.3bn and profits surged; the group also lifted its payout while launching the new buyback, supporting shareholder returns. IMI lifts payout, launches new share buyback amid strong profit growth
• Positive Sentiment: Jefferies keeps a Buy rating and sets a p3,185 target, citing strong FY25 delivery and upside from the buyback and underappreciated FY26 earnings power. IMI: Strong FY25 Delivery, Buyback Upside and Underappreciated FY26 Earnings Power Support Buy Rating
• Neutral Sentiment: Q4 reported EPS was GBX 132.30, with a net margin ~10.9% and ROE ~18.1%; slide deck and conference call are available for details on segment performance and margin drivers. IMI earnings report and call
• Neutral Sentiment: Management projects resilient automation demand and organic revenue growth in 2026, which supports the outlook but will be watched for conversion into margins and cash flow. UK’s IMI projects 2026 organic revenue growth on resilient automation demand

Analyst Ratings Changes

Several equities research analysts recently weighed in on IMI shares. JPMorgan Chase & Co. boosted their price target on shares of IMI from GBX 2,850 to GBX 2,960 and gave the stock an “overweight” rating in a research report on Thursday, December 4th. Panmure Gordon reiterated a “buy” rating and set a GBX 2,760 price objective on shares of IMI in a research report on Tuesday, November 25th. Six analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of GBX 2,670.71.

IMI Company Profile

IMI plc is a specialist engineering company operating in fluid and motion control markets. We combine our deep engineering knowledge with strong applications expertise to develop solutions for the most acute industry problems. We help our customers become safer, more sustainable and more productive. IMI employs around 10,000 people, has manufacturing facilities in 19 countries and operates a global service network. The Company is listed on the London Stock Exchange and is a constituent of the FTSE4Good Index.