IMI plc (IMI) AI Stock Analysis

• Market Cap: £6.39B
• Dividend Yield: 1.29%
• Average Volume (3M): 617.01K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.27
• Revenue Growth: -0.32%
• EPS Growth: -3.96%
• Country: UK
• Employees: 10,352
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.75
• Shares Outstanding: 246,140,340
• 10 Day Avg. Volume: 799,914
• 30 Day Avg. Volume: 617,009
• PEG Ratio: 0.69
• Price to Book (P/B): 5.59
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 20.62
• 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: £3,043.33
• Price Target Upside: 12.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.4
• Revenue Forecast (FY): £2.36B

• Rating: 74 Outperform
• Price Target: 3,152.00 p ▲(16.05% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by strong financial performance (improving margins, de-risking balance sheet, solid earnings quality) and a generally positive earnings call with reaffirmed guidance and strong orders. This is tempered by mixed near-term technical momentum and a valuation profile that looks only moderately attractive given the ~20 P/E and low dividend yield.

Positive Factors

Margin expansion & revenue acceleration

Sustained margin expansion and a large revenue step-up indicate stronger pricing, cost discipline and scale in engineered products. Higher gross and operating margins support durable earnings power across capital projects and aftermarket sales, improving long-term profitability resilience.

Recurring aftermarket and order strength

Rising aftermarket orders and strong process automation demand show a durable revenue base beyond project cycles. Recurring service, parts and upgrades from long equipment lifecycles provide predictable margin-rich cash flows and stronger customer stickiness over the medium term.

Improved cash generation and balance sheet progress

Consistently positive free cash flow that covers a large share of earnings enhances financial flexibility to fund buybacks, dividends and reinvestment. Combined with de-risking leverage trends, this supports sustained capital returns and investment in growth initiatives.

Negative Factors

Material absolute debt remains

Although debt-to-equity has improved, the sizeable absolute debt stock maintains interest and refinancing exposure. In cyclical end markets, this can constrain flexibility for M&A or capex and increases sensitivity to rate rises or earnings volatility over the medium term.

Operating cash conversion below net income

Persistent shortfall of operating cash flow versus net income points to working-capital and timing volatility. This raises risk that earnings are less convertible to cash in downturns, pressuring the ability to sustain buybacks/dividends and increasing reliance on financing.

Operational cyber risk and segment weakness

The cyber incident and resulting operational disruption coincided with meaningful declines in Industrial Automation and Transport. Such events expose the business to one-off charges, qualification delays and ongoing operational risk that can depress segment revenue and margin recovery.

IMI plc Business Overview & Revenue Model

Company Description

IMI plc, a specialist engineering company, designs, manufactures, and services engineered products worldwide. The company operates through three divisions: IMI Precision Engineering, IMI Critical Engineering, and IMI Hydronic Engineering. The IMI Precision Engineering division develops motion and fluid control technologies for industrial automation, commercial vehicle, life sciences, energy, and rail applications. This division offers actuators, air preparation products, pressure switches, and fittings; pneumatic, hydraulic, electric, and vacuum motion solutions; solenoid valves, angle-seat valves, motorized valves, and systems for dust filters; miniature fluid control solutions; precise and accurate syringes, syringe pumps, and rotary valves; cab chassis, powertrain solutions, stainless steel valves and regulators, and emergency shutdown controls; and stainless steel valves and regulators, nuclear class valves, and emergency shutdown controls. It provides its products under the Norgren, Bimba, Buschjost, FAS, Herion, Kloehn, Adaptas, and Maxseal brands. The IMI Critical Engineering division offers specialized valves and actuators to the fossil power, oil and gas, petrochemical, nuclear, marine, and pharmaceutical markets under the IMI Bopp & Reuther, IMI CCI, IMI Fluid Kinetics, IMI NH, IMI Orton, IMI Remosa, IMI STI, IMI TH Jansen, IMI Thompson Valves, IMI Truflo Marine, IMI Truflo Rona, IMI PBM, and IMI Z&J brands. The IMI Hydronic Engineering division provides products for hydronic distribution systems, which deliver heating and cooling systems to the residential and commercial building sectors. This segment offers balancing and control solutions, thermostatic control systems, and pressure maintenance systems, dirt and air separators, and pressure step degassers under the IMI Pneumatex, IMI TA, IMI Flow Design, IMI Heimeier, and IMI Aero-Dynamiek brands. The company was founded in 1862 and is headquartered in Birmingham, the United Kingdom.

How the Company Makes Money

IMI plc generates revenue primarily through the sale of its engineering products and solutions across its three divisions. Key revenue streams include the sale of precision engineering components, which are utilized in sectors like automotive, oil and gas, and energy; hydronic products that optimize heating and cooling systems in buildings; and critical engineering solutions for high-demand industries such as aerospace and marine. Additionally, IMI benefits from long-term service agreements and aftermarket sales, which provide recurring revenue. Strategic partnerships with major industrial clients and investments in research and development further enhance its competitive edge, enabling the company to deliver innovative solutions that meet evolving market demands.

IMI plc Financial Statement Overview

Summary

Strong overall fundamentals: revenue and profitability improved with higher net and operating margins, and leverage has declined meaningfully with ROE remaining strong. The main offsets are uneven operating cash conversion versus net income and the sustainability risk of the unusually large 2025 revenue step-up.

Income Statement

Revenue expanded strongly over the period, accelerating to ~39% growth in 2025 after modest growth in 2024. Profitability improved steadily: net margin rose from ~9.3% (2020) to ~13.5% (2025), and operating profitability also strengthened with higher EBIT and EBITDA margins. Gross margin has remained solid and fairly stable in the mid‑40% range, though it dipped slightly in 2024 vs. 2023 before recovering. Key watchout is that the 2025 revenue jump is unusually large versus prior years, which can be harder to sustain.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity declined from ~1.04 (2022) to ~0.58 (2025), driven by lower debt and higher equity. Returns remain strong, with return on equity consistently above ~21% and reaching ~28% in 2025, indicating effective profitability relative to the capital base. The main weakness is that absolute debt remains material (over ~£0.6bn in 2025), so financial flexibility is better than a few years ago but still not “low leverage” for the sector.

Cash Flow

Cash generation is healthy with operating cash flow and free cash flow trending upward overall, and 2025 free cash flow up ~18% year over year. Free cash flow consistently covers a large portion of earnings (roughly 73%–84% across the years), which supports earnings quality and shareholder returns. However, operating cash flow has been below net income in every year shown (coverage ~0.32–0.54), suggesting working-capital or timing headwinds and introducing some volatility risk despite solid free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.30B	2.21B	2.20B	2.05B	1.87B
Gross Profit	1.07B	1.04B	1.01B	900.40M	836.20M
EBITDA	519.00M	473.90M	457.60M	431.40M	358.60M
Net Income	309.90M	248.50M	237.30M	226.30M	196.30M
Balance Sheet
Total Assets	2.48B	2.49B	2.47B	2.52B	2.17B
Cash, Cash Equivalents and Short-Term Investments	114.90M	150.00M	108.20M	135.00M	97.50M
Total Debt	643.70M	695.50M	745.10M	945.00M	717.40M
Total Liabilities	1.37B	1.41B	1.44B	1.61B	1.39B
Stockholders Equity	1.11B	1.09B	1.03B	905.60M	779.10M
Cash Flow
Free Cash Flow	300.90M	280.10M	283.30M	193.20M	199.60M
Operating Cash Flow	399.50M	371.60M	363.20M	264.50M	257.10M
Investing Cash Flow	-81.80M	-58.00M	-69.10M	-278.00M	-234.40M
Financing Cash Flow	-308.60M	-276.20M	-276.40M	24.50M	-109.40M

IMI plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2716.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IMI, the sentiment is Neutral. The current price of 2716 is below the 20-day moving average (MA) of 2792.60, below the 50-day MA of 2767.12, and above the 200-day MA of 2407.30, indicating a neutral trend. The MACD of -25.50 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IMI.

IMI plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	74 Outperform	£6.39B	20.02	24.91%	1.29%	-0.32%	-3.96%
GDWN	71 Outperform	£1.82B	15.43	33.12%	1.01%	24.42%	103.25%
ROR	67 Neutral	£2.49B	23.57	20.10%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£7.28B	15.92	13.46%	1.93%	-6.93%	18.57%
WEIR	64 Neutral	£7.06B	29.74	13.42%	1.26%	-1.97%	40.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPX	61 Neutral	£4.81B	30.76	13.88%	2.46%	0.10%	-15.33%

IMI plc Corporate Events

IMI lifts margins, boosts payouts with £500m buyback after fifth year of organic growth

IMI plc reported its fifth consecutive year of mid-single digit organic revenue growth in 2025, with organic sales up 5% and organic adjusted operating profit up 8%, lifting adjusted operating margin to 20%. Statutory profit before tax rose 27%, free cash flow grew to £290m, and return on invested capital improved to 14.0%, underscoring continued profitable expansion.

The board proposed a 10% increase in the final dividend and launched a £500m share buyback, reflecting strong cash generation and a disciplined capital allocation strategy aimed at enhancing shareholder returns. For 2026, IMI guides to a sixth year of mid-single digit organic revenue growth, flat to slightly higher margins, and continued strength in Automation and Climate Control, signalling confidence in its ability to compound earnings growth.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £3208.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI Updates Voting Rights and Share Capital Structure

IMI plc reported that its issued share capital comprises 259,658,154 ordinary shares, of which 12,648,836 are held in treasury, leaving 247,009,318 shares carrying voting rights. The company highlighted that this voting rights figure serves as the key denominator for shareholders when assessing whether they must disclose holdings or changes in holdings under the FCA’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £3208.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI Executives Boost Holdings Through Employee Share Plan

IMI plc has disclosed that its chief executive officer Roy Twite, chief financial officer Luke Grant and chief people officer Elizabeth Rose have each purchased small amounts of IMI ordinary shares on the London Stock Exchange. The acquisitions, made on 10 February 2026 at a price of £28.54 per share through the company’s Employee Share Ownership Plan, marginally increase senior management’s equity exposure and may be read by investors as a modest signal of confidence and alignment with shareholders, though the transactions are limited in size.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £3208.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI Updates Total Voting Rights and Share Capital

IMI plc has reported that its issued share capital stands at 259,656,939 ordinary shares, of which 12,648,836 are held in treasury, leaving 247,008,103 shares carrying voting rights. The company highlighted that this total voting rights figure serves as the reference point for shareholders when assessing whether they must disclose holdings or changes in their stake under the UK Financial Conduct Authority’s Disclosure and Transparency Rules, underscoring ongoing regulatory compliance and transparency in its shareholder reporting.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £3024.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI Executives Add to Holdings Through Employee Share Plan

IMI plc has disclosed that three senior executives — Chief Executive Officer Roy Twite, Chief Financial Officer Luke Grant and Chief People Officer Elizabeth Rose — have each purchased small tranches of IMI ordinary shares through the company’s Employee Share Ownership Plan. The transactions, executed on 13 January 2026 at a price of £26.18 per share and reported under Market Abuse Regulation requirements, modestly increase the leadership team’s direct equity stakes and underscore ongoing alignment between management and shareholders through structured share purchase schemes.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £2500.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI plc Confirms Total Voting Rights at Year-End 2025

IMI plc reported that as of 31 December 2025 its issued share capital comprised 259,654,876 ordinary shares, of which 12,648,836 are held in treasury. This leaves a total of 247,006,040 voting rights in the company, a key reference figure shareholders must use to assess whether they are required to disclose holdings or changes in holdings under UK Financial Conduct Authority disclosure and transparency rules.

The most recent analyst rating on (GB:IMI) stock is a Hold with a £2500.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.

IMI plc Executives Participate in Share Ownership Plan

IMI plc, a company involved in the manufacturing and engineering sector, has announced transactions by its senior management as part of the IMI Employee Share Ownership Plan. The Chief Executive Officer, Chief Financial Officer, and Chief People Officer have each purchased shares at a price of £24.76 per share on the London Stock Exchange. This move reflects the company’s commitment to aligning management interests with those of shareholders, potentially enhancing stakeholder confidence.

The most recent analyst rating on (GB:IMI) stock is a Buy with a £2772.00 price target. To see the full list of analyst forecasts on IMI plc stock, see the GB:IMI Stock Forecast page.