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Imdex Ltd
(Sydney:IMD)
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Rating:72Outperform
Price Target:
AU$4.00
â–¼(-0.50% Downside)
Action:Reiterated
Date:05/08/26
The score is driven primarily by solid financial performance (strong margins and low leverage) and a positive earnings call featuring record results and strong cash conversion, partially offset by slowing revenue growth and declining free cash flow growth. Technical signals are mixed/neutral and valuation support is moderate with a low dividend yield.
Positive Factors
High and expanding EBITDA margins
Sustained high EBITDA margins (32% 1H) reflect operating leverage and disciplined cost management. Durable margin strength supports reinvestment in R&D, funding of higher‑value software and services, and resilience to cyclical dips in drilling activity over a multi‑month horizon.
Negative Factors
Slowing headline revenue growth
Recent deceleration to low single‑digit growth contrasts with a 5‑year CAGR of 15%, suggesting nearer‑term maturation or timing lags. If sustained, slower top‑line growth limits operating leverage benefits and pressures long‑term margin expansion and investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding EBITDA margins
Sustained high EBITDA margins (32% 1H) reflect operating leverage and disciplined cost management. Durable margin strength supports reinvestment in R&D, funding of higher‑value software and services, and resilience to cyclical dips in drilling activity over a multi‑month horizon.
Read all positive factors
Imdex Ltd (IMD) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.85B
Dividend Yield0.75%
Average Volume (3M)1.16M
Price to Earnings (P/E)36.3
Beta (1Y)1.38
Revenue Growth10.43%
EPS Growth8.12%
CountryAU
Employees816
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.10
Shares Outstanding511,841,830
10 Day Avg. Volume1,186,872
30 Day Avg. Volume1,163,075
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)2.21
Price to Sales (P/S)3.23
P/FCF Ratio21.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.79Price Target Upside19.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.14
Revenue Forecast (FY)AU$604.77M
Imdex Ltd Business Overview & Revenue Model
Company Description
Imdex Limited, an Australian company founded in 1980 (initially as Pilbara Gold NL, renamed in 1985), delivers advanced drilling optimization products and specialized sensors to the global minerals industry. With operations spanning the Asia-Pacif...
How the Company Makes Money
Imdex makes money primarily by selling products and services used during mineral drilling campaigns, with revenue typically linked to drilling activity levels. Key revenue streams include: (1) Drilling fluids and consumables: sales of specialty dr...
Imdex Ltd Earnings Call Summary
Earnings Call Date:Feb 22, 2026
(Q2-2026)
| Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call conveys a strongly positive operational and financial performance: record revenue, higher EBITDA and margins, exceptional cash conversion, broad regional growth and successful traction of higher‑value products and integrated services. Near‑term headwinds are manageable and largely relate to M&A integration, FX, selective geographic softness, and timing lags in junior market activity. Overall, the positives materially outweigh the negatives and position IMDEX well for an anticipated multi‑year exploration upcycle.Positive Updates
Record Revenue
Group revenue of $247 million, up 16% on 1H FY25, the strongest first half in IMDEX history.
Negative Updates
Net Debt Increase from Acquisitions
Net debt increased to $27 million after the Earth Science Analytics acquisition and 2H FY26 will see an increase in acquired intangible assets, creating near-term balance sheet impacts.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue
Group revenue of $247 million, up 16% on 1H FY25, the strongest first half in IMDEX history.
Read all positive updates
Company Guidance
Guidance and metrics: IMDEX expects FY'26 to be a transitional year with a normalized EBITDA margin guide of ~30% (1H26: revenue $247m, +16% pcp; normalized EBITDA $78m, +22%; 1H margin 32%), normalized operating cash flow ~$65–67m and strong normalized cash conversion of 86% (vs a historical guidance of ~70%), net debt $27m, cash $49m and leverage 0.2x, and an interim fully‑franked dividend of $0.0169/share (30% payout of normalized NPAT). Management expects H2 to be stronger than H1 (Q3 similar to Q2, Q4 step‑up), CapEx in 2H to be consistent with 1H with a split ~20% general/40% growth/remainder sustaining, and FY‑26 contribution from recent M&A with Datarock (~5 months) and Krux (~3 months). Market/regional and product signals: exploration budgets are expected to increase double‑digits in CY2026 with a 6–9 month lag to drilling activity; revenue mix and growth drivers in 1H included sensors/services/software +20% (68% of group revenue), sale of goods +9%, Americas +20%, APAC +9%, EMEA +17%, Integrated Field Services +28%, HUB‑IQ +22%, Mining Technologies +47%, and Datarock +90%; FX exposure is ~50% USD‑linked (AUD/USD 1% ≈ $1.5m revenue impact).Imdex Ltd Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 465.98M | 431.39M | 445.28M | 411.40M | 341.84M | 264.38M |
| Gross Profit | 135.85M | 312.44M | 139.67M | 136.89M | 234.54M | 180.84M |
| EBITDA | 134.34M | 129.19M | 113.06M | 99.83M | 100.40M | 76.69M |
| Net Income | 50.42M | 55.19M | 32.40M | 34.99M | 44.71M | 31.67M |
Balance Sheet | ||||||
| Total Assets | 884.38M | 830.15M | 786.14M | 806.14M | 393.61M | 366.11M |
| Cash, Cash Equivalents and Short-Term Investments | 49.31M | 42.51M | 47.13M | 58.13M | 36.37M | 58.48M |
| Total Debt | 158.62M | 100.31M | 127.65M | 161.35M | 46.82M | 50.00M |
| Total Liabilities | 231.78M | 200.79M | 214.87M | 249.94M | 96.38M | 113.06M |
| Stockholders Equity | 652.61M | 629.36M | 571.28M | 556.21M | 297.23M | 253.05M |
Cash Flow | ||||||
| Free Cash Flow | 62.89M | 66.11M | 74.54M | 55.35M | 18.05M | 29.90M |
| Operating Cash Flow | 118.40M | 123.50M | 108.05M | 82.51M | 55.72M | 57.04M |
| Investing Cash Flow | -92.11M | -64.00M | -35.90M | -346.13M | -53.04M | -28.14M |
| Financing Cash Flow | -30.42M | -64.70M | -79.39M | 285.86M | -24.72M | -8.40M |
Imdex Ltd Technical Analysis
Negative
4.02
Price Trends
4.01
Negative
4.00
Negative
3.78
Negative
Market Momentum
-0.11
Positive
32.29
Neutral
13.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IMD, the sentiment is Negative. The current price of 4.02 is above the 20-day moving average (MA) of 3.94, above the 50-day MA of 4.01, and above the 200-day MA of 3.78, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 32.29 is Neutral, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IMD.
Imdex Ltd Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$503.86M | 6.38 | 10.91% | ― | 5.58% | 20.20% | |
72 Outperform | AU$1.85B | 36.35 | 7.87% | 0.70% | 10.43% | 8.12% | |
67 Neutral | AU$11.15B | 34.37 | 18.86% | 1.75% | 10.69% | 19.77% | |
64 Neutral | AU$5.22B | 32.67 | 7.97% | 3.11% | -4.99% | 120.98% | |
64 Neutral | AU$3.14B | 63.72 | 7.79% | 3.20% | 14.40% | -57.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$2.93B | 27.70 | 20.27% | 2.65% | 26.80% | 40.18% |
* Industrials Sector Average
AU:IMD
Imdex Ltd
3.58
0.67
23.07%
AU:ALQ
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22.02
4.47
25.50%
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7.90
1.25
18.76%
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0.99
0.09
10.67%
AU:MND
Monadelphous Group Limited
29.74
11.69
64.76%
AU:NWH
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6.96
3.89
126.42%
Imdex Ltd Corporate Events
Imdex sets August webcast to unveil FY26 results and strategy progress
Jul 9, 2026
Imdex Ltd, a global mining-tech provider of cloud-connected sensors and drilling optimisation solutions for the mining value chain, continues to focus on enabling faster, smarter drilling and real-time subsurface data for contractors and resource ...
Imdex boosts CEO equity stake as performance rights vest
Jul 1, 2026
Imdex Limited has issued 82,506 ordinary shares to its CEO and managing director, Paul House, following the vesting of performance rights granted for the period from 1 July 2025 to 30 June 2026 under its shareholder-approved Employee Rights Plan. ...
Imdex Reports Lapse of Performance Rights in Capital Update
Jul 1, 2026
Imdex Ltd has reported the lapse of 31,369 performance rights, which have ceased because the conditions attached to these rights were not met or can no longer be satisfied. The cessation slightly reduces the company’s pool of potential equit...
Imdex Expands Equity Base with Conversion of Unquoted Securities
Jul 1, 2026
Imdex Limited has notified the market of the issue of 1,606,863 ordinary fully paid shares following the conversion or exercise of previously unquoted options or other convertible securities. The new shares, dated 1 July 2026, increase the company...
Imdex reports internal transfer of director’s shareholding with no net change
Jun 29, 2026
Imdex Limited has disclosed a change in director Anthony Wooles’ interests, noting an off-market transfer of shares between entities he controls. The company clarified that Wooles remains the ultimate beneficiary of the shares, with no chang...
Imdex Completes Final Share Tranche to Devico Executives
Jun 2, 2026
Imdex Limited has issued a final tranche of 1,095,232 fully paid ordinary shares to key management personnel of Norwegian drilling technology firm Devico AS under reinvestment arrangements linked to Imdex’s prior acquisition of Devico. The s...
Imdex Highlights Record Performance and Momentum at Macquarie Australia Conference 2026
May 5, 2026
Imdex Ltd has released its presentation for the Macquarie Australia Conference 2026, signalling continued engagement with the investment community following a period described as one of record performance and growing momentum. The company’s ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.