IMI plc (LSE:IMI) has increased its full-year 2026 adjusted earnings per share guidance to between 137p and 143p, supported by continued trading momentum, stronger performance in its Transport business and an additional contribution from Truflo Marine ahead of its planned disposal.
The FTSE 100 engineering group, which specialises in fluid and motion control technologies, reported a 2% increase in organic revenue during the third quarter, despite facing a demanding comparison with the same period in 2025, when organic growth reached 12%.
Organic revenue increased 4% during the first nine months of 2026, leaving the company on course to deliver its sixth consecutive year of mid-single-digit organic revenue growth.
IMI highlighted strong order intake in Process Automation, double-digit growth in Climate Control and improving demand in the global heavy-duty truck market.
The company also confirmed that its acquisition of iSMA CONTROLLI, announced earlier in October, will strengthen its position in smart-connected building technologies.
IMI Increases 2026 Adjusted Earnings Guidance
IMI now expects adjusted basic earnings per share of between 137p and 143p for the financial year ending 31 December 2026.
This represents an increase of 1p at both ends of the company’s previous guidance range of 136p to 142p.
The revised outlook principally reflects an additional earnings contribution from Truflo Marine, following a change in the expected completion date of its disposal.
The transaction is now anticipated to complete during the fourth quarter of 2026, rather than the third quarter as previously expected.
Stronger growth in the Transport business has also contributed to the improvement in full-year expectations.
IMI continues to anticipate mid-single-digit organic revenue growth for 2026, maintaining its record of consistent annual expansion.
The company said its operating performance remains supported by the One IMI business model, which focuses on operational efficiency, innovation and commercial execution.
Third-Quarter Organic Revenue Rises 2%
IMI reported organic revenue growth of 2% during the three months ended 30 September 2026.
The increase was achieved against a particularly strong prior-year comparison, with organic revenue having risen 12% in the third quarter of 2025.
For the first nine months of 2026, organic revenue was 4% higher than in the corresponding period last year.
Statutory revenue increased 3% during the third quarter, reflecting the impact of foreign currency movements.
Performance varied across the company’s businesses, with growth in Life Technology offsetting weaker quarterly revenue in Automation.
The company said its strategic exposure to energy, automation and healthcare markets continues to support demand for its products and services.
Automation Revenue Declines 3% Despite Strong Order Intake
IMI’s Automation division, which accounted for approximately 65% of group sales in 2025, reported a 3% decline in organic revenue during the third quarter.
However, organic revenue remained 2% higher for the first nine months of 2026.
The division includes Process Automation and Industrial Automation, which serve industrial, energy and infrastructure customers.
Process Automation experienced a decline in quarterly revenue because of the timing of shipments, although order intake remained strong.
Industrial Automation continued to deliver positive organic growth despite facing a demanding prior-year comparison.
Process Automation Orders Increase 19%
Process Automation, representing approximately 44% of IMI’s 2025 sales, reported a 19% increase in organic order intake during the third quarter, excluding Truflo Marine.
Order intake increased 14% during the first nine months of 2026 on the same basis.
New Construction orders rose 27% year-to-date, while higher-margin Aftermarket orders increased 7%.
The growth in orders indicates continued demand across the division’s industrial and energy-related markets.
However, third-quarter organic revenue declined 6%, reflecting the timing of customer shipments.
The decline followed particularly strong organic revenue growth of 26% in the corresponding quarter of 2025.
Despite the quarterly reduction, Process Automation organic revenue remained 1% higher year-to-date.
The combination of stronger orders and slower revenue recognition highlights the importance of shipment timing to the division’s near-term performance.
Industrial Automation Delivers 2% Organic Growth
IMI’s Industrial Automation business reported organic revenue growth of 2% during the third quarter.
The business accounted for approximately 21% of group sales in 2025.
The quarterly increase came against a strong prior-year comparison that had benefited from the recovery of previously delayed shipments.
For the first nine months of 2026, Industrial Automation organic revenue increased 4%.
The performance contributed to the Automation division’s positive year-to-date growth despite the temporary weakness in Process Automation revenue.
Life Technology Revenue Increases 11%
IMI’s Life Technology division delivered organic revenue growth of 11% during the third quarter.
The division, which represented approximately 35% of group sales in 2025, recorded organic revenue growth of 7% during the first nine months of the year.
Growth was supported by strong demand for energy-efficient climate control products and a recovery in the heavy-duty truck market.
Climate Control delivered double-digit growth, while Transport recorded a particularly strong increase in quarterly revenue.
Life Science and Fluid Control also maintained positive growth despite a demanding comparison with the previous year.
Climate Control Revenue Rises 13% as Data Centre Orders Accelerate
IMI’s Climate Control business reported a 13% increase in organic revenue during the third quarter.
Organic revenue was 7% higher during the first nine months of 2026.
The business, which accounted for approximately 18% of group sales in 2025, benefited from continued demand for energy-efficient building technologies.
Revenue growth also reflected the timing of data centre shipments from the existing order book.
IMI reported data centre orders of £25 million during the first nine months of 2026, compared with £9 million during the corresponding period last year.
This represents an increase of approximately 178%, highlighting the growing contribution of data centre infrastructure to the company’s order intake.
The business supplies technologies designed to improve heating, cooling and energy management performance in commercial and industrial environments.
The company expects demand for energy-efficient solutions to remain an important driver of its longer-term growth.
IMI Agrees Acquisition of iSMA CONTROLLI
IMI also highlighted its recently announced agreement to acquire iSMA CONTROLLI.
The acquisition is intended to strengthen the company’s smart-connected building technology offering.
IMI said the business will expand its ability to provide energy-efficient solutions for small and medium-sized commercial buildings, a market it considers underserved.
The transaction forms part of IMI’s disciplined approach to capital allocation, with acquisitions focused on businesses that complement its existing operations and strategic priorities.
The company expects the addition of iSMA CONTROLLI to support its position in connected building controls and energy management technologies.
No financial terms for the acquisition were provided in the trading update.
Life Science and Fluid Control Revenue Grows 2%
IMI’s Life Science and Fluid Control business reported organic revenue growth of 2% during the third quarter.
The business accounted for approximately 10% of group sales in 2025.
The quarterly performance was measured against a prior-year period that included catch-up shipments, creating a more demanding comparison.
Organic revenue increased 4% during the first nine months of 2026.
The business forms part of IMI’s wider exposure to healthcare and specialist fluid control applications.
Transport Revenue Jumps 19% as Heavy-Duty Truck Market Recovers
IMI’s Transport business recorded a 19% increase in organic revenue during the third quarter.
The business, which accounted for approximately 7% of group sales in 2025, benefited from the continued recovery in the global heavy-duty truck market.
Organic revenue increased 10% during the first nine months of 2026.
Following the stronger performance, IMI raised its full-year organic revenue growth expectation for Transport to high-single-digit growth.
The company had previously anticipated mid-single-digit growth for the business.
The improvement in Transport’s outlook contributed to the group’s decision to increase its full-year earnings guidance.
IMI also confirmed that its strategic review of the Transport business remains ongoing.
No decision or timetable for completing the review was announced in the latest update.
Truflo Marine Disposal Expected to Complete in Fourth Quarter
IMI confirmed that the planned disposal of Truflo Marine is now expected to complete during the fourth quarter of 2026.
The transaction had previously been expected to conclude in the third quarter.
The revised completion timetable means Truflo Marine will contribute to IMI’s financial performance for longer than originally anticipated.
This additional contribution is the principal factor behind the increase in full-year adjusted earnings per share guidance.
The company continues to exclude Truflo Marine from the organic order intake figures reported for Process Automation.
The disposal remains part of IMI’s ongoing portfolio management strategy.
Middle East Shipments Remain in Line With Expectations
IMI said shipments to the Middle East during the first nine months of 2026 remained consistent with the assumptions outlined in its first-quarter trading update.
The company continues to expect that operating conditions will allow planned deliveries to be completed before the end of the financial year.
This assumption remains incorporated into its full-year guidance.
The company did not announce any additional changes to its Middle East shipment expectations.
Delivery conditions in the region therefore remain relevant to the achievement of the group’s full-year financial targets.
Foreign Exchange Expected to Have Limited Full-Year Impact
IMI said that if exchange rates recorded on 23 October 2026 remain unchanged for the remainder of the year, foreign currency movements would have no material impact on full-year revenue or adjusted operating profit compared with 2025.
The exchange rates used in this assessment were US$1.34 and €1.19 against sterling.
The company continues to assume a net interest charge of £20 million for 2026.
Its adjusted effective tax rate is expected to be approximately 26.3%.
The full-year earnings guidance also incorporates a weighted average share count of approximately 239 million following completion of IMI’s £500 million share buyback programme.
IMI Provides Initial Financial Assumptions for 2027
IMI also outlined preliminary financial assumptions for 2027 ahead of its full-year results announcement.
The company currently expects a net interest charge of approximately £23 million next year.
Its adjusted effective tax rate is anticipated to remain broadly consistent with the 26.3% expected for 2026.
The weighted average number of shares is forecast to decline to approximately 231 million, reflecting the full-year impact of the completed £500 million share buyback programme.
These assumptions exclude any effects from further acquisitions or additional share repurchases.
IMI said it will provide full financial guidance for 2027 when it publishes its annual results on 9 March 2027.
Chief Executive Highlights Growth and Strategic Progress
IMI Chief Executive Officer Roy Twite said the company’s third-quarter performance reflected continued execution of its operating strategy and strong demand across key markets.
“We delivered a good third quarter performance, against a very strong prior year comparator, with strong order intake in Process Automation and double-digit organic growth in Climate Control. We have increased our full year earnings guidance, principally reflecting the additional contribution from Truflo Marine ahead of its disposal. We remain on track to deliver our sixth consecutive year of mid-single-digit organic revenue growth. Consistent execution of the One IMI operating model underpins this performance, and I would like to thank all our people for their contribution.
“Earlier this month, we were delighted to announce the agreed acquisition of iSMA CONTROLLI, a targeted bolt-on that is an excellent example of our disciplined approach to capital allocation. It strengthens our smart-connected offering, helping customers improve energy efficiency in underserved small and medium-sized commercial buildings, and we are excited about what we can achieve together.
“Our strategic focus on the megatrends of Energy, Automation and Healthcare continues to create sustained demand across our markets. With a unique, market-led approach to innovation, significant recurring aftermarket revenue and strong pricing power, IMI is well placed to deliver continued growth.”
IMI Outlook
IMI expects adjusted basic earnings per share of between 137p and 143p for 2026, compared with its previous guidance range of 136p to 142p.
The increase reflects the additional contribution from Truflo Marine before its anticipated fourth-quarter disposal and stronger growth expectations for Transport.
The company remains on track to deliver its sixth consecutive year of mid-single-digit organic revenue growth, supported by positive year-to-date trading and continued demand across its key markets.
Process Automation’s strong order intake provides support for future activity, while Climate Control continues to benefit from demand for energy-efficient technologies and data centre infrastructure.
Transport is now expected to achieve high-single-digit organic revenue growth in 2026, although the strategic review of the business remains ongoing.
The company continues to assume that planned Middle East shipments can be completed before the end of the financial year.
Looking ahead to 2027, IMI expects the completed £500 million share buyback programme to reduce its weighted average share count, while its acquisition of iSMA CONTROLLI is intended to strengthen its position in smart-connected building technologies.
IMI will publish its full-year 2026 results on 9 March 2027, when it will also provide detailed guidance for the following financial year.
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