IMI PLC (GB:IMI)
LSE:IMI
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IMI plc
(LSE:IMI)
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Rating:74Outperform
Price Target:
3,152.00 p
▲(18.50% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
IMI plc (IMI) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£6.49B
Dividend Yield1.29%
Average Volume (3M)617.01K
Price to Earnings (P/E)20.0
Beta (1Y)1.26
Revenue Growth-0.32%
EPS Growth-3.96%
CountryUK
Employees10,352
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.75
Shares Outstanding245,116,360
10 Day Avg. Volume799,914
30 Day Avg. Volume617,009
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)5.59
Price to Sales (P/S)2.69
P/FCF Ratio20.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£3,043.33Price Target Upside14.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.4
Revenue Forecast (FY)£2.37B
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 ...
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...
IMI plc Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Neutral
The call highlighted IMI's solid performance in the face of challenges, including organic growth in sales and profits, strong order intake, and effective recovery from a cyber attack. However, it also noted the negative impact of the cyber incident, declines in specific divisions, and ongoing challenges in certain markets.Positive Updates
Organic Sales and Profit Growth
IMI achieved 2% organic sales growth and 5% organic adjusted operating profit growth in the first half of 2025, with adjusted operating margins rising by 30 basis points.
Negative Updates
Impact of Cyber Attack
The company recognized a one-off exceptional charge of $25.4 million related to IT system recovery and infrastructure upgrades following a cyber attack.
Read all updates
Q2-2025 Updates
Positive
Negative
Organic Sales and Profit Growth
IMI achieved 2% organic sales growth and 5% organic adjusted operating profit growth in the first half of 2025, with adjusted operating margins rising by 30 basis points.
Read all positive updates
Company Guidance
During the call, IMI reconfirmed its guidance for 2025, expecting to achieve its fourth consecutive year of mid-single-digit organic revenue growth. The company anticipates full-year adjusted basic earnings per share (EPS) to range between 129p and 136p. The adjusted operating margin is projected to be around 20%, with the interest charge slightly higher than prior guidance. The tax rate is expected to increase to approximately 25%, while the weighted average number of shares is predicted to reduce to 249 million at year-end. Despite currency fluctuations presenting a 1.5% headwind to profits, IMI remains on track to deliver on its financial targets, supported by strong order books in Process Automation, Climate, and Industrial Automation sectors.IMI plc Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| 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
Neutral
2660.00
Price Trends
2767.44
Negative
2622.02
Positive
2425.81
Positive
Market Momentum
-38.29
Positive
44.86
Neutral
67.35
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 2660 is below the 20-day moving average (MA) of 2719.20, below the 50-day MA of 2767.44, and above the 200-day MA of 2425.81, indicating a neutral trend. The MACD of -38.29 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £6.49B | 20.02 | 24.91% | 1.29% | -0.32% | -3.96% | |
71 Outperform | £987.51M | 15.43 | 33.12% | 1.01% | 24.42% | 103.25% | |
67 Neutral | £2.56B | 23.57 | 20.10% | 2.04% | 1.93% | -15.07% | |
64 Neutral | £7.14B | 15.58 | 13.46% | 1.93% | -6.93% | 18.57% | |
64 Neutral | £7.17B | 29.74 | 13.42% | 1.26% | -1.97% | 40.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £4.94B | 30.76 | 13.86% | 2.46% | 0.10% | -15.33% |
* Industrials Sector Average
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IMI plc Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
IMI lifts margins, boosts payouts with £500m buyback after fifth year of organic growth
Positive
Mar 6, 2026
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%, f...
Regulatory Filings and Compliance
IMI Updates Voting Rights and Share Capital Structure
Neutral
Mar 2, 2026
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...
Other
IMI Executives Boost Holdings Through Employee Share Plan
Positive
Feb 11, 2026
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, m...
Regulatory Filings and Compliance
IMI Updates Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
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 ser...
Regulatory Filings and Compliance
IMI Executives Add to Holdings Through Employee Share Plan
Positive
Jan 14, 2026
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 ...
Regulatory Filings and Compliance
IMI plc Confirms Total Voting Rights at Year-End 2025
Neutral
Jan 2, 2026
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 sharehol...
Other
IMI plc Executives Participate in Share Ownership Plan
Positive
Dec 10, 2025
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 O...
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.