Imdex Ltd (AU:IMD)
ASX:IMD
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Imdex Ltd
(Sydney:IMD)
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Rating:72Outperform
Price Target:
AU$4.00
▲(3.63% Upside)
Action:ReiteratedDate: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 durable margins
Imdex's high 2025 gross margin (72.4%) and improved net margin (12.8%) reflect durable product economics and pricing power across consumables, hardware and software. Strong margins sustain cash generation, fund R&D and fleet investment, and provide resilience through mining cycle volatility.
Negative Factors
Slowing revenue growth
Revenue growth decelerated to 2.2% in 2025, a meaningful slowdown from prior trends. If sustained, slower top‑line expansion can limit operating leverage benefits, reduce capacity to scale higher‑value services, and make it harder to absorb fixed costs and fund organic investment.
Read all positive and negative factors
Positive Factors
Negative Factors
High durable margins
Imdex's high 2025 gross margin (72.4%) and improved net margin (12.8%) reflect durable product economics and pricing power across consumables, hardware and software. Strong margins sustain cash generation, fund R&D and fleet investment, and provide resilience through mining cycle volatility.
Read all positive factors
Imdex Ltd (IMD) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.97B
Dividend Yield0.7%
Average Volume (3M)1.16M
Price to Earnings (P/E)16.8
Beta (1Y)1.42
Revenue Growth-3.12%
EPS Growth69.50%
CountryAU
Employees816
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.05
Shares Outstanding513,358,640
10 Day Avg. Volume1,186,872
30 Day Avg. Volume1,163,075
Financial Highlights & Ratios
PEG Ratio0.35
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$4.57Price Target Upside18.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.12
Revenue Forecast (FY)AU$519.35M
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, includi...
How the Company Makes Money
Imdex makes money by selling and supporting a portfolio of consumable products, equipment, and technology services used during drilling and orebody discovery programs. A key revenue stream is drilling fluids and chemicals (including additives and ...
Imdex Ltd Earnings Call Summary
Earnings Call Date:Feb 22, 2026
(Q2-2026)
| Next Earnings Date:Aug 10, 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
Neutral
3.86
Price Trends
3.89
Negative
3.70
Positive
3.46
Positive
Market Momentum
>-0.01
Negative
49.45
Neutral
49.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IMD, the sentiment is Neutral. The current price of 3.86 is above the 20-day moving average (MA) of 3.79, below the 50-day MA of 3.89, and above the 200-day MA of 3.46, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 49.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$622.11M | 4.12 | 10.91% | ― | -4.54% | 43.24% | |
72 Outperform | AU$1.97B | 16.79 | 7.87% | 0.70% | -3.12% | 69.50% | |
66 Neutral | AU$11.23B | 17.54 | 18.32% | 1.75% | 18.18% | 4272.22% | |
65 Neutral | AU$2.84B | 10.17 | 20.27% | 2.65% | 7.20% | 32.60% | |
64 Neutral | AU$5.05B | 14.22 | 7.97% | 3.11% | -4.53% | 97.67% | |
64 Neutral | AU$2.74B | 8.10 | 7.79% | 3.20% | 12.18% | -73.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AU:IMD
Imdex Ltd
3.86
1.10
39.86%
AU:ALQ
ALS
22.24
7.24
48.27%
AU:DOW
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7.45
2.14
40.30%
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1.23
0.50
67.35%
AU:MND
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28.49
13.78
93.72%
AU:NWH
NRW Holdings Limited
5.97
3.59
150.84%
Imdex Ltd Corporate Events
Imdex Director Increases Indirect Shareholding via On‑Market Purchase
Mar 19, 2026
Imdex Limited has notified the ASX of a change in director Tracey Horton’s relevant interest in the company’s securities, following an on-market purchase of additional ordinary shares held indirectly via the J T Horton Super Fund acco...
Imdex Issues Shares to Devico Executives Under Reinvestment Deal
Mar 5, 2026
Imdex Limited has issued 1,516,838 fully paid ordinary shares to key management personnel of Devico AS, fulfilling reinvestment commitments tied to its earlier acquisition agreement. These shares, purchased on-market and allocated under time- and ...
Imdex withdraws unquoted securities notice after disclosure review
Mar 4, 2026
Imdex Ltd has withdrawn a previous filing related to the issue, conversion or payment up of unquoted securities, after determining that a different disclosure pathway was more appropriate. The cancellation of the earlier March 2, 2026 announcement...
Imdex issues 1.52 million new unquoted ordinary shares
Mar 2, 2026
Imdex Limited has notified the market of the issue or transfer of 1,516,838 unquoted ordinary fully paid shares, effective March 2, 2026. The move reflects an adjustment in the company’s capital structure, which may influence its equity base...
Imdex Delivers Record First-Half FY26 Results on Strong Global Demand
Feb 23, 2026
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...
Imdex Releases FY2026 Half-Year Results for Mining-Tech Operations
Feb 22, 2026
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 ...
Imdex files reviewed IFRS interim report for December 2025 half-year
Feb 22, 2026
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 independenc...
IMDEX Takes Full Control of Datarock to Drive AI-Powered Digital Earth Strategy
Feb 1, 2026
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&#...
IMDEX Sets Date for 1H26 Results and Investor Webcast
Jan 16, 2026
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...
Imdex Performance Rights Lapse Following Unmet Vesting Conditions
Jan 12, 2026
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 ...
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.