Intertek (LSE:ITRK) delivered record earnings in 2025, reporting revenue of £3.43 billion, representing 4.3% growth at constant currency. The performance was supported by like-for-like expansion across most business lines and a rise in adjusted operating margin to 18.1%.
Adjusted operating profit increased 9.3% at constant currency, marking a third straight year of double-digit growth in earnings per share. Return on invested capital exceeded 21%, reflecting disciplined capital allocation and operational efficiency.
Cash generation remained a highlight, with cash conversion reaching 110%. During the year, the group deployed £300 million into capital expenditure and acquisitions, focusing on higher-margin segments to strengthen its portfolio. Shareholders benefited from total returns of £602 million, including dividends and the completion of a £350 million share buyback programme.
Management stated that progress under its AAA strategy is running ahead of its 2023–25 objectives. For 2026, the company guided to mid-single-digit like-for-like revenue growth, additional margin improvement and continued strong cash flow, signalling confidence in sustained quality-led expansion and reinforcing its position in risk-based quality assurance markets.
From an investment standpoint, Intertek’s robust financial results and active capital management — including strategic acquisitions and significant buybacks — represent core strengths. However, recent technical indicators point to bearish momentum in the shares, which may create short-term volatility. Valuation appears balanced, supported by a reasonable dividend yield.
More about Intertek
Intertek Group PLC is a global provider of Total Quality Assurance solutions, operating more than 1,000 laboratories and offices across over 100 countries. The company delivers assurance, testing, inspection and certification services focused on quality, safety and sustainability throughout clients’ operations and supply chains worldwide.
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