IMI: Powering ahead; reinstate coverage with Buy

研报英文原文证据摘录

IMI: Powering ahead; reinstate coverage with Buy

Exhibit 13: AM generates 60% of PA revenues Exhibit 14: OE is the main driver of our 7% organic growth

Revenue share (%) by basket expectations for 2027/28E

Growth expectation for 2027/28E by revenue basket

15%

OE - low growth 20%

7%

OE - high growth 20% 6%

3%

AM 60%

AM OE - High growth OE - Low growth PA total

basket basket

Source: BofA Global Research estimates, company report Source: BofA Global Research estimates

BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Industrial Automation: US data supports recovery expectations

We think IMI’s Industrial Automation (IA) business is less comparable to the likes of

Schneider and Siemens and instead shows growth in line with short-cycle activity in its

geographical end-markets. The company supplies small-ticket items (bespoke valves and

actuators) – sometimes costing below GBP1,000 apiece. Consequently, we compare and

forecast IA revenues broadly in line with expectations for the industrial businesses of

Trelleborg, SKF and Sandvik (excluding Sandvik’s Tungsten driven growth).

IMI generates c.50% of IA revenues in the US where PMI data has shown sustained

strength in recent months. While European PMIs have remained above 50 as well in

2026, S&P PMI commentary paints a more difficult picture with growth driven largely by

restocking ahead of potential price increases and supply chain challenges. A potential

recovery in 2027 could support IA growth further but we remain cautious and do not

factor in substantial growth support from Europe.

Exhibit 15: We expect IMI to grow broadly in line with short-cycle peers Exhibit 16: C.50% of IMI’s IA revenues are generated in the US

IMI organic growth vs industrial businesses of Sandvik, SKF and Trelleborg Geographical split of IMI’s IA revenues