Imdex Ltd (AU:IMD)
ASX:IMD
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Imdex Ltd
(Sydney:IMD)
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Rating:72Outperform
Price Target:
AU$4.50
▲(11.94% Upside)
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 profitability and expanded margins
Sustained high gross and EBITDA margins reflect product mix (consumables plus software/services) and operating leverage. Durable margins support reinvestment in R&D, dividends and buffer against cyclical drilling demand, improving long-term cash generation and returns.
Negative Factors
Slowing top-line growth and weaker FCF growth
Decelerating revenue and materially negative free cash flow growth can constrain funding for growth initiatives and M&A, and may force tougher capital allocation choices. Persistent slowdown risks eroding scale benefits and pressures reinvestment capacity over months.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and expanded margins
Sustained high gross and EBITDA margins reflect product mix (consumables plus software/services) and operating leverage. Durable margins support reinvestment in R&D, dividends and buffer against cyclical drilling demand, improving long-term cash generation and returns.
Read all positive factors
Imdex Ltd (IMD) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.07B
Dividend Yield0.7%
Average Volume (3M)1.16M
Price to Earnings (P/E)40.4
Beta (1Y)1.37
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 Ratio0.35
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$4.76Price Target Upside18.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.12
Revenue Forecast (FY)AU$517.03M
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 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
Neutral
4.02
Price Trends
4.01
Negative
3.95
Positive
3.67
Positive
Market Momentum
<0.01
Positive
46.43
Neutral
30.96
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 4.02 is below the 20-day moving average (MA) of 4.04, above the 50-day MA of 4.01, and above the 200-day MA of 3.67, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 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$537.28M | 6.73 | 10.91% | ― | 5.58% | 20.20% | |
72 Outperform | AU$2.07B | 40.40 | 7.87% | 0.70% | 10.43% | 8.12% | |
67 Neutral | AU$12.04B | 37.69 | 18.86% | 1.75% | 10.69% | 19.77% | |
65 Neutral | AU$3.07B | 28.63 | 20.27% | 2.65% | 26.80% | 40.18% | |
64 Neutral | AU$5.16B | 32.79 | 7.97% | 3.11% | -4.99% | 120.98% | |
64 Neutral | AU$3.44B | 67.20 | 7.79% | 3.20% | 14.40% | -57.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AU:IMD
Imdex Ltd
3.98
1.18
42.14%
AU:ALQ
ALS
23.69
7.57
46.99%
AU:DOW
Downer EDI Limited
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1.96
33.10%
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1.05
0.29
37.25%
AU:MND
Monadelphous Group Limited
30.52
13.68
81.20%
AU:NWH
NRW Holdings Limited
7.16
4.44
163.43%
Imdex Ltd Corporate Events
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 ...
Imdex Performance Rights Lapse Trims Potential Future Equity
Apr 15, 2026
Imdex Ltd has announced the cessation of 95,103 performance rights, which lapsed after the specified conditions for conversion into securities were not satisfied or became incapable of being met. The lapse reduces the pool of potential future equi...
Imdex director Anthony Wooles trims indirect shareholding
Apr 14, 2026
Imdex Limited has disclosed a change in the interests of director Anthony Wooles, following the lodgement of a formal notice with the ASX. The notice records an indirect disposal of 500,000 ordinary shares, executed via entities associated with Wo...
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...
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.