1Q26 Trading Update Better Than Expected, FY26F Guidance Reiterated

Research evidence excerpt

1Q26 Trading Update Better Than Expected, FY26F Guidance Reiterated

UK | Capital Goods

IMI plc EquityMayResearch12, 2026

TARGET | ESTIMATE CHANGE1Q26 Trading Update Better Than Expected,

RATING BUYFY26F Guidance Reiterated

PRICE 2,777.00p^

IMI's 1Q26 Trading Update was better than expected in terms of OCC

3,295.00p (3,085.00p) |

sales growth and Process Automation order intake (OE), and as we PRICE TARGET | % TO PT +19%

expected, mgmt reiterated its FY26F guidance (OCC sales & EPS). The 52W HIGH-LOW 2,938p - 1,858p

group continues to execute well, and there is plenty of scope for IMI to FLOAT (%) | ADV MM (USD) 93.2% | 59.69

continue to deliver attractive through-the-cycle growth/margins, further MARKET CAP £6.9B | $9.4B

raise the group's margin profile, and use the Balance Sheet to create TICKER IMI LN

shareholder value. Buy reiterated, new PT 3,295p. ^Prior trading day's closing price unless otherwise

noted.

Investment View - Buy Reiterated: We remain positive on the IMI equity story; the shares

are by no means expensive, in our view, and we continue to back mgmt's ability to deliver FY (Dec) CHANGE TO JEFe JEF vs CONS

constantly, as well as driving significant and through-the-cycle operational improvement. The 2026 2027 2026 2027

last few years have seen considerable advances in IMI's outlook and financial performance, REV NM NM -1% -1%

and the shares have re-rated upward, but we believe there is still more to come from IMI. Buy EPS NM <-1% -1% -2%

retained, with +17% potential upside to our new 3,295p PT (+20% TSR).

1Q26 Trading Update: Group OCC sales were +5% yoy (+6% reported). Process Automation 2026 (p) 1Half 2Half FY

('PA') saw limited sales/order disruption from the ME conflict (6% of group sales, mainly in PA). EPS -- -- 137.61

PREV 137.60