IMI (+) : Reassuring print despite caution into Q1 2026

Research evidence excerpt

IMI (+) : Reassuring print despite caution into Q1 2026

EQUITIES

CAPITAL GOODS

IMI OUTPERFORMPRICE* 2,730p  TARGET PRICE 3,200p (UPSIDE 17%) TARGETunchangedPRICE EPS-1%27e unchangedEPS 28e

Reassuring print despite caution into Q1 2026

IMI did it again: despite caution into Q1 2026, they delivered 5% organic growth and a reassuring13 MAY 2026

Securities Research Report outlook. Demand for safe energy supply, higher power demand from electrification and data centres

Production time: 05:28* (London time)

as well as energy-efficient HVAC solutions are driving orders. These were down by -2% in PA due

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to high comps, but b-t-b should have been positive. Sales at risk in the Middle East were specified

Stephan Klepp, CFA at only c1% of group sales. We update our model, which leads to small tweaks in 2026/27/28BNP Paribas London Branch

(+44) 734 573 1907 estimates. We maintain our TP of 3,200p and O/P rating.

stephan.klepp@uk.bnpparibas.com

Better than expected and reassuring – limited Middle East impact

IMI reported its Q1 2026 trading update on 12 May. The print and conf call were reassuring, in

contrast to market fears. While IMI’s pre-close call prepared the markets for a soft start into 2026

with LSD organic growth, Q1 results of 5% organic growth were better than market expectations. IMI

shipped GBP35m into the Middle East at the end of April. Assuming April’s rate of disruption, they

aim to ship another GBP15m in the rest of Q2 2026 and GBP75m in H2 2026. From total ME sales

of GBP125m, IMI sees roughly GBP30m of larger new construction projects ‘at risk’ (i.e.1.3% of

annual sales), though clarified that these projects would move into 2027 rather than be lost.

Guidance confirmed and our model assumptions updated