H1‘26 Results: Solid beat on all lines and outstanding cash conversion (96%); FY guidance re-iterated

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Europe Equity Research

31 July 2026

IMI

H1’26 Results: Solid beat on all lines and outstanding

cash conversion (96%); FY guidance re-iterated

Our take: IMI’s H1’26 beat on both sales (+2%) and Adj. EBITA (+4%). Both

Automation and Life Technology sales grew 5% organically. PA orders grew 12%

organically with AM up 7% and New construction up 20% (including a £48m

nuclear order). Shipments to the Middle East came in ahead of expectations

suggesting the “at risk” deliveries are likely to be lower than the £30m outlined at

the Q1 TU. Notably, good H1 performance and WC management resulted in

significant cash conversion of 96%. IMI reiterates guidance of adj. EPS between

136-142p for the FY. It now sees Life Science & Fluid Control to be modestly

higher and Transport to grow MSD% this year, compared to stable previously. We

leave our 2026 adj. EPS unchanged at 140.7p. Overall, a solid print resulting in well

underpinned FY expectations should be enough for shares today. We reiterate our

Overweight.

• Noteworthy areas: See Table 1 for full details on the numbers. 1) Revenue of

£1,159m was up +6% y/y on a reported basis and 2% ahead of JPMe/Consensus.

The organic growth of +5% was better than JPMe: +3.9% and implies Q2

organic growth of c.5% (Q1: +5%). 2) Adj. EBITA at £217m was up +10% y/y

on a reported basis and up +8% y/y on an organic basis. Adj. EBITA was 4%

ahead of JPMe/Consensus. Adj. EBITA margin at 18.7% vs. 18.3%/18.4%

JPMe/Consensus, and up +50bps y/y on a reported basis, driven by the

Automation segment. 3) Automation: revenues increased +5% y/y organically,

better than JPMe at +4.3%. Industrial Automation was +5% organically (JPMe

+4.0%) implying a small deceleration in Q2 following +6% in Q1. Process

Automation was also +5% organically (JPMe +4.4%) implying a similar trend

(+4% growth in Q2) following the +6% in Q1; PA orders were +12% organically,

implying a BTB of 1.26x. Automation adj. EBITA margin of 19.4% was +100bp

y/y and compares to JPMe 18.5%. 4) Life Technology: revenues increased +5%

y/y organically, ahead of JPMe at +3.3%. Climate Control was +4% organically

(JPMe: +4.3%), after +4% in Q1.…