IMI half-year results 2026: profit, cash flow and dividend rise

A strong first half for IMI

IMI PLC has reported a solid set of half-year results, with growth across both operating platforms, improved profitability and a substantial increase in free cash flow.

For the six months ended 30 June 2026, revenue increased by 6% to £1,159 million. Organic revenue growth was 5%, meaning growth after stripping out acquisitions, disposals and currency movements.

Adjusted operating profit rose by 10% to £217 million, while the adjusted operating margin increased by 50 basis points to 18.7%. One basis point is one-hundredth of a percentage point, so the margin improvement was 0.5 percentage points.

The statutory figures were stronger still. Statutory operating profit increased by 27% to £201 million, with the statutory operating margin rising from 14.5% to 17.3%.

Most importantly, management reconfirmed its full-year guidance. IMI continues to expect adjusted basic earnings per share of between 136p and 142p.

IMI half-year results at a glance

Key figure	H1 2026	H1 2025	Change
Revenue	£1,159 million	£1,091 million	6%
Organic revenue growth	5%	Not disclosed	Not applicable
Adjusted operating profit	£217 million	£198 million	10%
Adjusted operating margin	18.7%	18.2%	50 basis points
Statutory operating profit	£201 million	£158 million	27%
Adjusted basic EPS	63.4p	56.1p	13%
Statutory basic EPS	57.7p	45.7p	26%
Adjusted operating cash flow	£208 million	£158 million	32%
Free cash flow	£171 million	£30 million	472%
Interim dividend per share	12.1p	11.0p	10%
Net debt to EBITDA	1.2 times	1.4 times	Improved

The combination of revenue growth, margin expansion and a lower average share count helped adjusted basic earnings per share rise by 13% to 63.4p.

Automation leads the profit growth

IMI's Automation platform produced revenue of £732 million, up 5% organically and 6% on a reported basis. Adjusted operating profit increased by 12% to £142 million, with the margin climbing by 100 basis points to 19.4%.

Process Automation performed particularly well. Total order intake increased by 12% organically to £596 million, while its closing order book was 10% higher at £993 million.

That included a £48 million nuclear construction order covering deliveries over more than a decade. New Construction orders rose by 20% organically, while higher-margin Aftermarket orders increased by 7%.

Aftermarket work involves servicing, replacing or upgrading equipment already installed at customer sites. This tends to be attractive because it can generate repeat demand and stronger margins. Around 45% of total IMI revenue now comes from aftermarket activities.

Industrial Automation revenue also grew by 5% organically, although management said this partly reflected improved market conditions and a softer comparative period in the first half of 2025.

That qualification is worth noting. Growth against an easier comparison may be less impressive than growth generated against an already strong prior period.

Data centre demand supports Life Technology

Life Technology revenue increased by 5% organically to £427 million. Adjusted operating profit rose by 6% to £75 million, although organic profit growth was a more modest 3%.

Climate Control revenue grew by 4% organically. Data centre orders reached £18 million, three times the £6 million recorded in the first half of 2025. IMI said it was benefiting from demand for energy-efficient and smart-connected products as data centre construction expands.

Life Science & Fluid Control revenue increased by 5% organically, supported by resilient healthcare demand and a softer prior-year comparison. IMI now expects this business to deliver modest organic revenue growth across 2026.

Transport was the fastest-growing part of the platform, with organic revenue up 8% as the heavy-duty truck market began to recover. Management now expects mid-single digit organic growth from Transport in 2026, although its strategic review remains ongoing.

There was one blemish. Life Technology's adjusted operating margin fell by 20 basis points to 17.6%. IMI attributed this to cybersecurity investment and spending intended to accelerate data centre growth. That may support future performance, but it is currently limiting margin progression within the platform.

Cash generation funds shareholder returns

Cash flow was a major strength. Adjusted operating cash flow rose by 32% to £208 million, giving cash conversion of 96%, compared with 80% a year earlier.

Free cash flow before dividends, acquisitions and share buybacks increased from £30 million to £171 million. The sharp improvement reflected stronger trading, good working capital management and the non-repeat of one-off items from the prior year.

IMI returned more than £300 million to shareholders during the half. This included £250 million completed under the £500 million share buyback programme announced in March 2026.

The company also raised its interim dividend by 10% to 12.1p per share. It will be paid on 21 September 2026 to shareholders on the register at the close of business on 14 August 2026.

Net debt increased from £533 million at the end of 2025 to £673 million, largely because of the capital returned to shareholders. However, net debt to adjusted EBITDA stood at 1.2 times, inside IMI's target range of 1.0 to 2.0 times.

What could affect the second half?

The unchanged earnings guidance is encouraging, but it still depends on several moving parts.

IMI assumes that planned shipments to the Middle East can be delivered by the end of the financial year. First-half shipments were modestly ahead of expectations, but management remains alert to indirect regional risks and possible inflationary pressure.

The disposal of Truflo Marine is also assumed to complete in the third quarter of 2026. The business is being sold for an enterprise value of £225 million, subject to regulatory approvals. The timing matters because Truflo Marine will contribute to earnings until completion.

Management expects the adjusted operating margin to be flat to slightly higher for the full year. Strong operating leverage is expected to be offset by previously announced cybersecurity investment, so investors should not assume that the first-half margin improvement will automatically accelerate.

Why these results matter for investors

There is plenty to like here. Organic growth was spread across Automation and Life Technology, Process Automation orders were strong, data centre demand increased and cash generation improved substantially.

The 10% dividend increase and ongoing £500 million buyback demonstrate confidence in the balance sheet and cash flow. Growth Hub orders, which track IMI's innovation pipeline, also rose by 22% to £78 million.

The main areas to monitor are the slight margin decline in Life Technology, exposure to Middle East shipment timing, the completion of the Truflo Marine sale and whether Industrial Automation can maintain momentum beyond an easier comparison.

Overall, IMI appears on track for a sixth consecutive year of mid-single digit organic revenue growth. Delivering within the reconfirmed 136p to 142p adjusted earnings-per-share range would reinforce the picture of a business combining steady growth with improving cash returns.

The full figures and accompanying statements are available in the original company announcement.