IMI Q1’26 Trading Update: Solid start to the year despite ME uncertainty; FY26 guidance reiterated

Research evidence excerpt

IMI Q1’26 Trading Update: Solid start to the year despite ME uncertainty; FY26 guidance reiterated

C A Z E N O V E Europe Equity Research

12 May 2026

IMI Overweight

IMI.L, IMI LN

Q1’26 Trading Update: Solid start to the year despite Price (11 May 26):2,758p

ME uncertainty; FY26 guidance reiterated ▼Price Target (Jun-27):3,050p Prior (Jun-27):3,100p

Our take: IMI’s Q1’26 Trading Update shows a solid start to the year with group

organic growth of 5% and also broad-based across all divisions. Encouragingly, the European Capital Goods

Middle East situation did not have a material impact on Q1 PA orders and sales Chitrita C Sinha AC

despite some expected disruption. The pipeline in PA continues to be strong and in (44-20) 7742-7176

the quarter, IMI saw only a c.1% decline y/y in PA AM orders against very tough chitrita.sinha@jpmorgan.com

comps (19% growth in Q1’25), suggesting good underlying demand. As such, IMI Jeremy Caspar

is maintaining FY26 guidance for MSD% organic revenue growth and adj. EPS of (44-20) 3493-5188

jeremy.caspar@jpmorgan.com

136-142p. Further, it now sees Industrial Automation sales up modestly higher J.P. Morgan Securities plc

(previously flat to modestly higher), however, given the ongoing ME situation, we

expect a slight impact on Process Automation to partially offset the better IA Specialist Sales contact details:

outlook. We leave our 2026E adj. EPS unchanged, with consensus likely to do the Sam Edmunds - Specialist Sales -

same. Overall, these results are encouraging given the ME uncertainty and some European Industrials

mixed peer-reporting. We reiterate our Overweight and reduce our price target (44-20) 7742-8733

slightly to 3,050p (from 3,100p) on a 1% trim to FY27E Adj. EBITA. sam.edmunds@jpmorgan.com

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