IMI plc (LSE:IMI) reported its fifth straight year of mid-single-digit organic revenue growth in 2025, with organic sales rising 5% and organic adjusted operating profit increasing 8%. The performance lifted the company’s adjusted operating margin to 20%. Statutory profit before tax climbed 27% during the year, while free cash flow improved to £290 million and return on invested capital rose to 14.0%, highlighting continued profitable expansion.
Reflecting the group’s strong cash generation, the board has proposed a 10% increase in the final dividend and announced a £500 million share buyback programme. Management said the move aligns with its disciplined capital allocation approach and commitment to enhancing shareholder returns. Looking ahead to 2026, the company expects to deliver a sixth consecutive year of mid-single-digit organic revenue growth, with margins anticipated to remain stable or improve slightly. Continued momentum is forecast in the Automation and Climate Control segments, supporting management’s confidence in sustained earnings growth.
The company’s outlook is primarily supported by strong financial results and positive corporate developments. Technical indicators suggest a bullish share price trend, although some caution is warranted due to potential overbought conditions. Valuation metrics indicate the stock may appear relatively expensive, which moderates the overall assessment. Commentary from the earnings call also reinforced confidence in the group’s strategy and growth trajectory.
More about IMI plc
IMI plc is a global engineering company specialising in fluid and motion control technologies. The group provides customised, high value-added solutions primarily serving Automation and Life Technology markets. Its products support key sectors linked to energy transition, industrial automation, and healthcare, while a strong aftermarket services business—accounting for roughly 45% of revenue—provides a stable and higher-margin revenue stream.
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