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Imdex Ltd (AU:IMD)
ASX:IMD
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Imdex Ltd (IMD) AI Stock Analysis

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AU:IMD

Imdex Ltd

(Sydney:IMD)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
AU$4.00
â–²(11.42% Upside)
Action:Downgraded
Date:08/18/26
The score is primarily supported by solid financial performance (strong growth, improving profitability, and consistently positive free cash flow) and a constructive earnings call with positive FY'27 momentum and clear growth drivers. This is meaningfully offset by weak technical positioning (trading below major moving averages) and a demanding valuation (high P/E with a low dividend yield), with increased leverage adding risk.
Positive Factors
Strong revenue growth and market expansion
Sustained revenue expansion indicates broader customer adoption and stronger market penetration. Growth across regions, exploration activity and market share provides a durable base for continued scale in mining technology.
Negative Factors
Higher leverage reduces financial flexibility
The sharp increase in leverage following acquisitions raises financing exposure and reduces balance-sheet flexibility. Higher debt may constrain future investment choices and makes earnings more sensitive to interest costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and market expansion
Sustained revenue expansion indicates broader customer adoption and stronger market penetration. Growth across regions, exploration activity and market share provides a durable base for continued scale in mining technology.
Read all positive factors

Imdex Ltd (IMD) vs. iShares MSCI Australia ETF (EWA)

Imdex Ltd Business Overview & Revenue Model

Company Description
Imdex Limited, an Australian company founded in 1980 (initially as Pilbara Gold NL, renamed in 1985), delivers advanced drilling optimization products and specialized sensors to the global minerals industry. With operations spanning the Asia-Pacif...
How the Company Makes Money
Imdex makes money by selling and supporting a portfolio of mining-technology and consumable products and related services to mining companies and drilling contractors, primarily linked to drilling and orebody knowledge activities. Key revenue stre...

Imdex Ltd Earnings Call Summary

Earnings Call Date:Aug 16, 2026
(Q4-2026)
|
Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Positive
The call was strongly positive: IMDEX reported record revenue and earnings, margin expansion, excellent cash conversion (83%), meaningful platform transformation (platform revenue now 47% of group), rapid DEK growth (+85% YoY), and clear progress integrating five acquisitions that add ~$51m annualized revenue. Challenges noted were manageable in context — higher debt and near‑term financing/D&A guidance from acquisition funding, integration costs continuing into FY '27, and cost/FX headwinds and timing lags in customer spend. Management emphasized continued investment to drive longer‑term margin accretion and multiple growth levers (market share, share of wallet, platform adoption), and early FY '27 trading (June/July record months) supported momentum.
Positive Updates
Record Revenue
Revenue increased 21% year‑on‑year to $520 million, a record for FY '26, driven by broad-based growth across all regions and both exploration activity and market share gains.
Negative Updates
Higher Net Debt and Increased Financing Costs
Net debt rose to $199 million following acquisition activity; management signaled higher financing costs and guided higher depreciation & amortization and net interest in FY '27 (noted ~ $15 million higher vs consensus), reflecting increased borrowings and potential small rate rise.
Read all updates
Q4-2026 Updates
Negative
Record Revenue
Revenue increased 21% year‑on‑year to $520 million, a record for FY '26, driven by broad-based growth across all regions and both exploration activity and market share gains.
Read all positive updates
Company Guidance
Management guided that FY'27 will build on a strong FY'26 base (revenue $520m, +21%; EBITDA normalized $163m, +29%; NPAT normalized $59m; NPATA $70m; EPS $0.115; cash conversion 83%; net debt $199m; leverage 1.3x; platform revenue 47% of group), flagging a strong start to FY'27 with record months in June and July and the full‑year benefit of five FY'26 acquisitions (partial‑year contribution $17m, ~ $51m annualized). They said FY'27 will be a year of investment — continued R&D (FY'26 R&D $43m; target circa 10% of revenue), higher capex to grow the connected fleet (FY'26 capex $69m), and integration of the acquired DEK businesses — and updated capital settings (dividend policy 25–35% of NPATA normalized). Guidance included higher depreciation/amortization and financing costs than consensus, which management attributed to the prior year capital profile, higher borrowings and an assumed small potential rate rise, and they reiterated a normalized effective tax rate of ~32%. Management also reminded investors of FX sensitivity (~$2.5–3.0m P&L impact per 1% USD move, ~50% flowing to EBITDA) and reiterated that margin expansion remains a medium‑term priority even as FY'27 will absorb integration and investment spend.

Imdex Ltd Financial Statement Overview

Summary
Strong multi-year revenue growth and healthy profitability with improving net margin (~15.3% in 2026) and consistently positive free cash flow. Offsetting factors include sharp gross margin volatility and a material step-up in leverage in 2026 (debt-to-equity rising to ~0.42), which reduces financial flexibility.
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue520.09M431.39M445.28M411.40M341.84M
Gross Profit158.15M312.44M139.67M136.89M234.54M
EBITDA148.49M129.19M113.06M99.83M100.40M
Net Income79.44M55.19M32.40M34.99M44.71M
Balance Sheet
Total Assets1.13B830.15M786.14M806.14M393.61M
Cash, Cash Equivalents and Short-Term Investments40.77M42.51M47.13M58.13M36.37M
Total Debt284.47M100.31M127.65M161.35M46.82M
Total Liabilities448.12M200.79M214.87M249.94M96.38M
Stockholders Equity683.93M629.36M571.28M556.21M297.23M
Cash Flow
Free Cash Flow69.91M66.11M74.54M55.35M18.05M
Operating Cash Flow126.01M123.50M108.05M82.51M55.72M
Investing Cash Flow-250.02M-64.00M-35.90M-346.13M-53.04M
Financing Cash Flow123.99M-64.70M-79.39M285.86M-24.72M

Imdex Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
AU$557.84M7.429.91%―0.95%1.92%
71
Outperform
AU$2.86B22.7122.77%2.98%29.43%50.05%
67
Neutral
AU$3.57B22.9723.03%3.20%31.39%451.49%
65
Neutral
AU$1.88B23.5411.89%0.75%20.56%43.97%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
AU$11.38B35.5118.86%2.08%10.69%19.77%
59
Neutral
AU$4.42B20.4211.01%3.39%-7.37%59.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IMD
Imdex Ltd
3.51
0.54
18.26%
AU:ALQ
ALS
22.39
4.26
23.47%
AU:DOW
Downer EDI Limited
6.60
-0.40
-5.70%
AU:EHL
Emeco Holdings Limited
1.13
0.08
7.62%
AU:MND
Monadelphous Group Limited
29.10
8.53
41.45%
AU:NWH
NRW Holdings Limited
7.72
3.99
106.97%

Imdex Ltd Corporate Events

Imdex Delivers Record FY26 Results on Tech-Led Growth and Market Share Gains
Aug 17, 2026
Imdex reported its strongest financial year on record in FY26, with revenue rising 21% to $520 million and broad-based growth driven by both higher exploration activity and market share gains, particularly in next-generation and productivity-enhan...
Imdex Details FY26 Sustainability Strategy and Targets
Aug 16, 2026
Imdex has released its FY26 Sustainability Report outlining a comprehensive approach to environmental, social and governance performance across its global mining technology operations. The report frames sustainability as central to product leaders...
Imdex Marks Strongest Financial Year Amid Sector Uncertainties
Aug 16, 2026
Imdex Ltd operates in the mining technical services industry, supplying drilling productivity tools, data and analytics solutions, and related services that support mineral exploration and resource development globally. The company focuses on enab...
Imdex Posts Record FY26 Results as Digital Platform Strategy Drives Growth
Aug 16, 2026
Imdex reported record full-year 2026 results, with revenue rising 21% to $520 million and normalised EBITDA up 29% to $163 million, supported by strong cash generation and margin expansion. Earnings growth outpaced revenue, highlighting operating ...
Imdex Declares AUD 0.0175 Dividend for FY26 Period
Aug 16, 2026
Imdex Limited has announced a new dividend for holders of its ordinary fully paid shares, declaring a distribution of AUD 0.0175 per share for the twelve-month period ended 30 June 2026. The dividend will trade ex on 16 September, with a record da...
Imdex Lodges 2026 Corporate Governance Statement with ASX
Aug 16, 2026
Imdex Ltd has lodged its Appendix 4G and Corporate Governance Statement for the financial year ended 30 June 2026 with the ASX. The documents, approved by the Board and signed by the company secretary, detail where investors can access Imdex&#8217...
Imdex sets August webcast to unveil FY26 results and strategy progress
Jul 9, 2026
Imdex Ltd, a global mining-tech provider of cloud-connected sensors and drilling optimisation solutions for the mining value chain, continues to focus on enabling faster, smarter drilling and real-time subsurface data for contractors and resource ...
Imdex boosts CEO equity stake as performance rights vest
Jul 1, 2026
Imdex Limited has issued 82,506 ordinary shares to its CEO and managing director, Paul House, following the vesting of performance rights granted for the period from 1 July 2025 to 30 June 2026 under its shareholder-approved Employee Rights Plan. ...
Imdex Reports Lapse of Performance Rights in Capital Update
Jul 1, 2026
Imdex Ltd has reported the lapse of 31,369 performance rights, which have ceased because the conditions attached to these rights were not met or can no longer be satisfied. The cessation slightly reduces the company’s pool of potential equit...
Imdex Expands Equity Base with Conversion of Unquoted Securities
Jul 1, 2026
Imdex Limited has notified the market of the issue of 1,606,863 ordinary fully paid shares following the conversion or exercise of previously unquoted options or other convertible securities. The new shares, dated 1 July 2026, increase the company...
Imdex reports internal transfer of director’s shareholding with no net change
Jun 29, 2026
Imdex Limited has disclosed a change in director Anthony Wooles’ interests, noting an off-market transfer of shares between entities he controls. The company clarified that Wooles remains the ultimate beneficiary of the shares, with no chang...
Imdex Completes Final Share Tranche to Devico Executives
Jun 2, 2026
Imdex Limited has issued a final tranche of 1,095,232 fully paid ordinary shares to key management personnel of Norwegian drilling technology firm Devico AS under reinvestment arrangements linked to Imdex’s prior acquisition of Devico. The s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 18, 2026