IMI (+) : After the call Q1 26

研报英文原文证据摘录

IMI (+) : After the call Q1 26

EQUITIES

CAPITAL GOODS

IMI OUTPERFORMPRICE* 2,758p  TARGET PRICE 3,200p (UPSIDE 16%)

FLASH NOTE

After the call Q1 26

12 MAY 2026 Securities Research Report Production time: 09:15* (London time)

Research Analyst & Publishing Entities

Stephan Klepp, CFA BNP Paribas London Branch (+44) 734 573 1907 stephan.klepp@uk.bnpparibas.com

What happened?

IMI’s management just finished its conference call with regard to Q1 2026:

On the Middle East…: IMI spelled out that they 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 that

total of GBP125m of revenues, management sees roughly GBP30m of larger new construction projects at risk (i.e.

1.3% of annual sales). The execution of those depends on the length of the conflict and the subsequent phasing of the

normalisation of O&G activities. The projects at risk have lower margins as they are new construction projects.

On Process Automation…: Strong order situation for Power and LNG continues. Power was said to have had a

phantastic start with doubling of conventional power orders versus Q1 2025. Visibility for Power is strong for the next

few years. Q2 and Q3 are facing lower comps for orders, and excluding the high comps and ME effect the underlying

orders grew at a MSD rate (vs reported -2%). We imply that the book to bill ratio was >1x and the 12M average was

around 1.02x. For the sector, management now expects MSD growth vs prior HSD (BNPPe 6.5%).

On Industrial Automation…: Low comps from the cyber incident a year ago as well as improved operations made

management more positive on the outlook for 2026. The US was called out to be strong and PMIs are supportive. They