Imdex Ltd (IMD) AI Stock Analysis

• Market Cap: AU$2.18B
• Dividend Yield: 0.7%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 43.1
• Beta (1Y): 1.45
• Revenue Growth: -3.12%
• EPS Growth: 69.50%
• Country: AU
• Employees: 816
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.05
• Shares Outstanding: 511,841,830
• 10 Day Avg. Volume: 1,186,872
• 30 Day Avg. Volume: 1,163,075
• PEG Ratio: 0.35
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 3.23
• P/FCF Ratio: 21.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.22
• Price Target Upside: 0.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): AU$497.25M

• Rating: 72 Outperform
• Price Target: AU$5.00 ▲(18.48% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial quality (high margins and low leverage) and a constructive earnings update (record results, strong cash conversion, and supportive guidance). This is tempered by a premium valuation (high P/E, low yield) and technicals that look strong but somewhat overextended (high RSI).

Positive Factors

High Profitability and Margins

Imdex's elevated gross (72.4%) and net (12.8%) margins reflect durable pricing power and a high‑value product mix. Sustained margin levels support reinvestment in R&D and capex, underwrite dividends and provide resilience through commodity and regional drilling cycles.

Strong Cash Generation and Conversion

Consistently converting earnings into cash (86% conversion, record operating cash flow) gives Imdex durable funding for growth, M&A and shareholder returns while limiting reliance on external financing, a structural advantage during multi‑year exploration cycles.

Shift to Higher‑Value Recurring Revenue

A 68% mix of sensors, services and software signals a structural move to higher‑margin, recurring and solutions revenue. This increases customer stickiness, reduces sensitivity to meter‑drilled volatility and supports longer‑term margin sustainability and predictable cash flows.

Negative Factors

Slowing Revenue Growth

Revenue growth decelerated to 2.2% in 2025 versus stronger historical rates. If this moderation persists, it could limit operating leverage benefits, slow margin or profit expansion and reduce the return on recent R&D and M&A investments over the medium term.

Decline in Free Cash Flow Growth

A significant drop in free cash flow growth (-21%) despite solid operating cash suggests higher capex, working capital or acquisition spend. Sustained negative FCF growth would constrain discretionary spend, dividends or force greater leverage to fund strategic initiatives.

M&A Integration and Competitive Intensity

Integration costs from recent acquisitions and added field labour for service growth can compress margins; digital acquisitions are growing from a low base and lumpy. Combined with persistent competitive intensity, this may require ongoing investment to protect share and margins.

Imdex Ltd Business Overview & Revenue Model

Company Description

Imdex Limited, together with its subsidiaries, provides drilling optimization products and sensors for the minerals industry in the Asia-Pacific, Africa, Europe, and the Americas. The company sells and rents drilling optimization products, including drilling fluids, solids removal units, remote fluid testing technologies, rig alignment technologies, and drilling productivity technologies; and rents rock knowledge sensors, which include downhole survey, core orientation, gamma logging, and structural orientation sensors. It also provides real-time data and analytics solutions, such as a cloud-based data collection and validation platform; an advanced reporting software; a geoscience analytics software; an interpretive mineralogy software; and a 3D visualisation software. In addition, the company offers software, mining technology, drilling optimization, downhole navigation, structural geology, in-field geoanalysis, and driller operable geophysics solutions. It provides its products and services under the AMC and REFLEX brands to drilling contractors and resource companies. The company was formerly known as Pilbara Gold NL and changed its name to Imdex Limited in July 1985. Imdex Limited was incorporated in 1980 and is headquartered in Balcatta, Australia.

How the Company Makes Money

Imdex generates revenue through multiple key streams, including the sale of drilling fluids and related products, equipment rentals, and software solutions. The company's primary revenue model is based on the direct sale of its proprietary products and services to mining companies and exploration firms. Additionally, Imdex earns significant income through ongoing contracts and partnerships with major players in the mining sector, providing tailored solutions and support. The recurring nature of these contracts, along with the demand for innovative and efficient exploration technologies, contributes substantially to its earnings. Imdex also benefits from strategic collaborations and joint ventures that expand its market reach and enhance its product offerings.

Imdex Ltd Financial Statement Overview

Summary

Strong profitability and balance sheet (gross margin 72.4%, net margin 12.8%, debt-to-equity 0.16) support a solid financial profile. Offsetting factors include slowing revenue growth (2.2% in 2025) and negative free cash flow growth (-21.05% in 2025), which warrant monitoring.

Income Statement

Imdex Ltd has shown consistent revenue growth over the years, with a notable increase in gross profit margins, reaching 72.4% in 2025. The net profit margin improved to 12.8% in 2025, indicating enhanced profitability. However, the revenue growth rate has slowed down to 2.2% in 2025 from previous years, which could be a concern if the trend continues. Overall, the company demonstrates strong profitability and stable growth.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.16 in 2025, reflecting a solid capital structure with low leverage. Return on equity has increased to 8.8%, showing efficient use of equity to generate profits. The equity ratio remains strong, indicating a stable financial position. Overall, Imdex Ltd maintains a healthy balance sheet with low financial risk.

Cash Flow

Operating cash flow has increased, with a strong coverage ratio of 1.46 in 2025, indicating good cash generation relative to net income. However, free cash flow growth has been negative at -21.05% in 2025, which could impact future investments. The free cash flow to net income ratio remains healthy at 0.54, suggesting adequate cash flow generation. Overall, cash flow management is stable but requires attention to reverse the decline in free cash flow growth.

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

• Technical Analysis Sentiment: Positive
• Last Price: 4.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IMD, the sentiment is Positive. The current price of 4.22 is above the 20-day moving average (MA) of 3.83, above the 50-day MA of 3.71, and above the 200-day MA of 3.28, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 62.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IMD.

Imdex Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMD	72 Outperform	AU$2.18B	43.15	9.03%	0.70%	-3.12%	69.50%
GNG	68 Neutral	AU$860.83M	28.69	50.61%	5.24%	12.96%	8.19%
LYL	67 Neutral	AU$565.35M	15.87	29.67%	2.51%	-3.08%	-16.35%
SRG	66 Neutral	AU$1.82B	31.97	13.62%	1.85%	23.76%	21.18%
NWH	64 Neutral	AU$3.00B	61.41	4.71%	3.20%	12.18%	-73.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Imdex Ltd Corporate Events

Imdex Delivers Record First-Half FY26 Results on Strong Global Demand

Imdex reported its strongest ever first-half financial performance for FY26, driven by record revenue of $247 million and broad-based demand for its products across all regions. The company’s growth has been underpinned by market share gains, increased exploration activity on established projects and expanding application of its subsurface data technologies beyond mining.

Normalised EBITDA rose 22% to $78 million with margins improving to 32%, highlighting operating leverage and disciplined cost control despite industry-wide cost inflation and geopolitical uncertainty. Strong cash generation, an 86% normalised cash conversion rate and modest net debt of $27 million after acquisitions have left Imdex with significant balance sheet capacity, enabling further technology-focused deals and supporting a record fully franked interim dividend of 1.69 cents per share.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Releases FY2026 Half-Year Results for Mining-Tech Operations

Imdex Limited has released its half-year results for FY2026, covering the six months ended 31 December 2025, outlining the group’s financial performance and operating outcomes for the period. The announcement, approved by the board, signals ongoing transparency to investors and stakeholders regarding the company’s progress in its Mining-Tech operations and global drilling optimisation offerings.

While detailed figures were not included in the brief, the filing highlights that Imdex continues to report formally to the market on a half-yearly basis in line with ASX requirements. The update underscores the company’s focus on maintaining investor engagement and providing visibility into its operational performance across its international mining technology business.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex files reviewed IFRS interim report for December 2025 half-year

Imdex Limited has lodged its Appendix 4D and interim financial report for the half-year ended 31 December 2025 with the ASX, including the directors’ report, reviewed financial statements and the auditor’s review report and independence declaration. The interim report, which follows IFRS and has been reviewed without dispute or qualification, updates investors on the company’s half-year performance and forms part of its ongoing continuous disclosure obligations alongside prior annual reports and other market announcements.

While the detailed financial results are contained in the lodged documents, the company’s confirmation that the review report is unqualified and that the interim accounts comply with IFRS underlines the robustness of its reporting framework. The filing reinforces Imdex’s adherence to ASX Listing Rule 4.2A and the Corporations Act continuous disclosure regime, providing stakeholders with assurance over governance and the integrity of its half‑year financial information.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

IMDEX Takes Full Control of Datarock to Drive AI-Powered Digital Earth Strategy

IMDEX has acquired the remaining equity in Australian AI geoscience specialist Datarock Holdings for about A$31 million, taking its ownership to 100% and fully consolidating Datarock’s results from 1 February 2026. The deal embeds Datarock’s cloud-native, AI-powered geological interpretation technology as a core asset within IMDEX’s Digital Earth Knowledge ecosystem, enabling unified workflows that connect drilling, geological, geotechnical and operational data, enhancing the company’s AI capabilities, accelerating product development and extending its reach across global mining and adjacent resource markets.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

IMDEX Sets Date for 1H26 Results and Investor Webcast

IMDEX Limited has announced that it will release its half-year 2026 financial results on 23 February 2026, accompanied by an interactive webcast for investors and stakeholders. Managing Director and CEO Paul House and Chief Financial Officer Linda Lim will present the company’s 1H26 performance, progress on its growth strategy, and outlook, followed by a Q&A session, underscoring IMDEX’s focus on transparency and engagement with the market as it executes its strategic plans.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Performance Rights Lapse Following Unmet Vesting Conditions

Imdex Limited has informed the market that 69,750 performance rights under the security code IMDAC have lapsed as of 1 January 2026 because the conditions attached to these rights were not met or became incapable of being satisfied. The cessation of these conditional securities slightly reduces the company’s potential future share dilution under its incentive arrangements, but does not involve any cash outflow or issuance of new shares, indicating a technical adjustment to its capital structure rather than a change in operating strategy.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Discloses Change in Director Anthony Wooles’ Shareholding

Imdex Limited has notified the ASX of a change in director Anthony Wooles’ indirect interest in the company’s ordinary shares, lodged via an Appendix 3Y. Wooles, through entities AEW Holdings Pty Ltd and the A & A Super Fund, has adjusted his holdings via an on-market trade at $3.51 per share, resulting in a revised total indirect holding of 1,267,310 shares under AEW Holdings and 132,690 shares under the super fund. The disclosure reflects routine compliance with ASX corporate governance requirements on director shareholdings, providing transparency to investors regarding insider equity positions and any shifts in board members’ financial exposure to the company.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Ltd Announces Change in Director’s Shareholding

Imdex Ltd has announced a change in the director’s interest, specifically regarding Mr. Anthony Wooles. The notice details a reduction in the number of shares held indirectly by Mr. Wooles, with a total of 150,000 shares disposed of through an on-market trade. This change may have implications for the company’s governance and shareholder dynamics.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

IMDEX Expands with Acquisition of ALT and MSI

IMDEX Limited announced the acquisition of ALT and MSI, signaling a strategic expansion in its service offerings. The acquisition is expected to strengthen IMDEX’s market position by enhancing its capabilities in exploration and production, potentially benefiting stakeholders through improved operational efficiencies.

The most recent analyst rating on (AU:IMD) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Ltd Expands Through Acquisition of ALT and MSI

Imdex Ltd has announced the acquisition of Advanced Logic Technology (ALT) and Mount Sopris Instruments (MSI), which is expected to bolster its position in the mining technical services industry. This strategic move is anticipated to enhance Imdex’s capabilities and expand its market reach, potentially benefiting stakeholders by improving service offerings and operational efficiencies.

The most recent analyst rating on (AU:IMD) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

IMDEX Expands Earth Science Capabilities with Strategic Acquisition

IMDEX Ltd has announced the acquisition of Advanced Logic Technology S.A. and its subsidiary, Mount Sopris Instruments Inc, for €55.8 million. This acquisition significantly expands IMDEX’s capabilities in earth science sensors and software, integrating industry-leading technologies like WellCAD software and borehole geophysical equipment. The transaction is expected to enhance IMDEX’s market position and customer offerings, driving growth in mining and adjacent markets. Financially, the acquisition is projected to be earnings per share accretive in the first full fiscal year and contribute significantly to revenue and EBITDA.

The most recent analyst rating on (AU:IMD) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.