IMI plc (IMI1) Q2 2026 Earnings Report

The call emphasized broad operational strength: mid-single-digit organic revenue growth, margin expansion, strong cash generation (free cash flow up materially) and active capital returns (dividend increase and share buyback progression). Multiple end markets showed robust order intake (notably Energy, Process Automation, Nuclear and Data Centers) and aftermarket momentum underpins recurring high-margin revenue. Headwinds and risks discussed were modest and largely timing or market-uncertainty related (Middle East shipment risk up to ~GBP 30m, cybersecurity investments, soft downstream/new construction and regional weakness in Germany). Given the weight of positive metrics, improvements and strategic progress versus contained risks, the overall tone is constructive.

Management reconfirmed full‑year 2026 guidance: mid‑single‑digit organic revenue growth (their sixth consecutive year), adjusted basic EPS of 136p–142p, a typical H1/H2 EPS split of ~45%/55% excluding Truflo Marine (reported EPS may be H1‑weighted if Truflo completes in Q3), adjusted operating margin flat to slightly up, medium‑term drop‑through of ~30%, and assumptions including Truflo Marine disposal in Q3, Middle East shipments per the Q1 update, no material FX impact, net interest of ~£20m, a tax rate of ~26.3% and a weighted average share count of 239m after the £500m buyback (£250m completed by 30 June); they flag the net debt/adjusted‑EBITDA target range of 1x–2x (net debt £673m, 1.2x at 30 June).