IMI has opened 2026 in decent shape. The headline numbers are solid rather than spectacular, but for a FTSE 100 engineering business, a 5% rise in first-quarter organic revenue and unchanged full-year guidance is exactly the sort of update investors usually like to see.
The big takeaway is simple: trading is moving in the right direction, management sounds confident, and there is no sign here of a wobble in the wider business. There are some risks to watch – especially the Middle East and a softer orders performance in Process Automation – but this reads as a reassuring update overall.
IMI Q1 2026 trading update: the key numbers investors need to know
| Metric | Q1 2026 |
|---|---|
| Organic revenue growth | 5% |
| Statutory revenue growth | 6% |
| Automation organic revenue growth | 6% |
| Life Technology organic revenue growth | 4% |
| Process Automation organic orders | Down 2% |
| Expected 2026 adjusted basic EPS | 136p to 142p |
| Middle East share of 2025 revenue | 6% |
One point worth clarifying: when IMI talks about organic revenue growth, it means growth stripped of currency swings, acquisitions and disposals. That gives a cleaner picture of how the underlying business is performing. On that basis, 5% growth is a good result and supports management’s claim that it is on track for a sixth consecutive year of mid-single-digit organic revenue growth.
Why IMI’s reconfirmed 2026 guidance matters
For me, the most important line in the whole statement is that full-year guidance has been reconfirmed. In uncertain markets, companies do not always get punished for modest growth, but they do get punished if confidence slips. IMI has avoided that here.
The group still expects adjusted basic earnings per share of between 136p and 142p for 2026. That matters because it tells investors management has seen enough in the first quarter to stay comfortable with profit expectations, even with ongoing geopolitical tension and mixed conditions in some end markets.
There is also a subtle quality signal in this update. Management is not trying to oversell one strong quarter. Instead, it is saying the business is performing in line with plan. That may sound boring, but boring can be very valuable in an industrial stock.
Automation growth shows the engine room of IMI is still working
Automation, which made up 65% of 2025 sales, delivered 6% organic revenue growth in the quarter. That is important because this is the biggest part of IMI and the main driver of group performance.
Process Automation: revenue up, but orders dipped
Process Automation, 44% of 2025 sales, grew organic revenue by 6%. That is a strong start. However, total orders were down 2% organically year on year, which is the main blemish in the update.
There is context, though. IMI said this was against a strong comparator, and aftermarket orders slipped by just 1% after several large nuclear aftermarket wins in the first quarter last year. Aftermarket means servicing, replacement parts and follow-on sales after the original equipment sale – typically attractive business because it can carry higher margins and repeat demand.
My read is that the orders decline is not ideal, but it does not look alarming based on what has been disclosed. Management says the effect of Middle East disruption on orders and sales was not significant, and it still sees a strong global pipeline tied to rising energy demand from data centres and electrification. Those are credible long-term demand drivers.
Industrial Automation: an easier comparison helped
Industrial Automation, 21% of 2025 sales, also delivered 6% organic revenue growth. IMI was honest that this benefited from an easier comparison after the cyber incident in the first quarter of 2025.
That is worth noting because not all of this growth should be treated as pure acceleration. Still, the company expects Industrial Automation to be modestly higher organically in 2026, which suggests the recovery is holding.
Life Technology performance was steady, with Transport standing out
Life Technology, which accounted for 35% of 2025 sales, posted 4% organic revenue growth. That is a touch slower than Automation, but still a respectable contribution.
Climate Control benefits from energy efficiency and data centres
Climate Control, 18% of 2025 sales, grew organic revenue by 4%. IMI pointed to demand for energy-efficient solutions and continued strength in the data centre direct liquid cooling market.
That theme matters. Data centres are becoming a recurring growth angle across industrial and engineering businesses, and IMI is clearly trying to position itself where cooling and energy efficiency spend is rising.
Life Science and Fluid Control remained mixed
Life Science and Fluid Control, 10% of 2025 sales, delivered 1% organic revenue growth. This is the softest part of the update.
The positive is that healthcare demand was described as resilient, and IMI saw further signs of stabilisation in the global life science device market. The drag came from mixed market conditions in Fluid Control. So this division is improving, but not firing on all cylinders yet.
Transport delivered the strongest growth, but remains under review
Transport, 7% of 2025 sales, grew organic revenue by 9%, in line with the heavy-duty truck market. On the face of it, that is the standout growth number in the release.
But investors should not ignore the strategic review. IMI says it is making significant operational improvements and continues to assess all strategic options. That usually means anything from keeping and improving the business to selling it is still on the table. No outcome or timing was disclosed.
Middle East exposure is a real risk, but not a red flag yet
IMI said it is actively monitoring the situation in the Middle East, with employee safety the top priority. The region represented 6% of IMI’s revenue in 2025, mainly within Process Automation.
That is material enough to watch, but not large enough on its own to derail the whole group unless disruption gets much worse. Management says first-quarter effects on orders and sales were not significant, and full-year guidance assumes planned shipments to the Middle East can still be delivered by year end.
That assumption is important. If conditions worsen and shipments slip, this could become a bigger issue later in the year. For now, it sits in the category of manageable risk rather than immediate problem.
Currency, pricing power and cash generation add to the positive IMI investment case
There was no nasty surprise on exchange rates. IMI said that if rates at 1 May 2026 – US$1.36 and €1.16 – stay constant for the rest of the year, the impact on full-year revenue and adjusted operating profit versus 2025 would not be material.
That helps reduce one common source of uncertainty in global industrials. Management also highlighted strong pricing power, recurring high-margin aftermarket exposure, a strong balance sheet and significant cash generation. Those are all qualities investors tend to value because they give a business more resilience when demand becomes patchy.
What this IMI trading update means for retail investors
In plain English, this is a good update. Not a blockbuster, not a game changer, but a steady and credible quarter from a company that looks in control of its markets and its guidance.
The positives are clear: 5% organic growth, broad-based progress across the group, strong performance in Automation, decent demand tied to structural themes like energy efficiency and data centres, and no change to earnings guidance. The negatives are also clear enough: Process Automation orders dipped, Life Science and Fluid Control remains patchy, and Middle East disruption could still become more meaningful.
On balance, this should be taken as mildly positive for the shares. It supports the investment case that IMI is a dependable quality industrial business with exposure to attractive long-term themes, rather than a company relying on one-off tailwinds.
The next checkpoint will be the half-year results on 31 July 2026. Between now and then, investors will want to see whether Process Automation orders recover and whether the Middle East remains a contained issue rather than a larger drag on deliveries.
