Intertek half-year results 2026: margins and cash flow strengthen ahead of EQT vote

Intertek Group PLC delivered a strong first-half operating performance, with revenue growth, a wider margin and sharply improved cash generation.

However, these are not ordinary half-year results. Shareholders are due to vote on EQT's recommended cash acquisition on 6 August 2026, meaning the proposed takeover is likely to matter more to investors than small changes in the full-year trading outlook.

The offer values each Intertek share at £61.077, including the 107.7p final dividend for 2025, which has already been paid. Subject to the required approvals and other conditions, completion is expected in the fourth quarter of 2026 or first quarter of 2027.

Intertek's key half-year figures

Intertek provides assurance, testing, inspection and certification services, collectively described as ATIC. Its work helps customers demonstrate that products, processes and supply chains meet required quality and safety standards.

Metric	H1 2026	H1 2025	Change
Revenue	£1,771.3 million	£1,672.7 million	5.9%
Like-for-like revenue	£1,749.7 million	£1,672.7 million	4.9% at constant currency
Adjusted operating profit	£309.7 million	£276.3 million	12.4% at constant currency
Adjusted operating margin	17.5%	16.5%	100 basis points
Adjusted diluted EPS	124.9p	111.5p	12.4% at constant currency
Adjusted operating cash flow	£338.1 million	£265.8 million	27.2%
Adjusted free cash flow	£138.5 million	£56.0 million	147.3%
Financial net debt	£1,145.5 million	£800.6 million	Up £344.9 million

Like-for-like revenue excludes the initial contribution from recently acquired businesses, giving investors a clearer view of underlying growth. Constant-currency figures remove the effect of exchange-rate movements.

Revenue rose 6.1% at constant currency, including like-for-like growth of 4.9%. Adjusted operating profit increased more quickly than revenue, lifting the adjusted operating margin by a full percentage point to 17.5%.

That margin performance is arguably the operational highlight. Intertek attributed the improvement to portfolio mix, pricing, operating leverage, cost discipline, productivity and investment in higher-margin activities. Management remains on track for its medium-term margin target of at least 18.5%.

Cash generation was particularly strong

Adjusted operating cash flow increased 27.2% to £338.1 million, with cash conversion reaching 116%. Adjusted free cash flow more than doubled to £138.5 million, up by £82.5 million.

This matters because Intertek has continued to invest. Organic capital expenditure rose to £66.7 million from £61.8 million, supporting laboratory expansion, equipment and new technology.

The group also acquired solar inspection specialist AePVI for £0.8 million and Colombian electrical testing and certification provider QTEST for £5.9 million. It separately paid £1.0 million for solar laboratory assets in India.

Management said the acquisitions are performing well and their integrations are progressing as planned.

Four divisions grew, but World of Energy struggled

The divisional picture was broadly positive, although not uniformly so.

Division	Constant-currency LFL growth	Adjusted margin	Margin change
Consumer Products	5.3%	29.4%	Up 110 basis points
Corporate Assurance	10.0%	22.3%	Up 30 basis points
Health and Safety	6.3%	13.9%	Up 210 basis points
Industry and Infrastructure	4.5%	11.0%	Up 230 basis points
World of Energy	0.3%	6.9%	Down 130 basis points

Corporate Assurance led underlying growth at 10.0%, supported by customer spending on supply-chain resilience, ethical sourcing and sustainability assurance.

Health and Safety also performed strongly. Total revenue increased 16.2% at constant currency, including acquisition benefits, while adjusted operating profit rose 37.8%. Food testing recorded double-digit like-for-like growth.

Industry and Infrastructure produced the largest margin improvement, with adjusted operating profit rising 34.0% at constant currency. Strong minerals demand helped offset temporary disruption in the Middle East.

World of Energy was the clear weak spot. Revenue was effectively flat, adjusted operating profit fell 16.3% at constant currency and the margin declined to 6.9%. Intertek pointed to the impact of the war in the Gulf on its Caleb Brett business and lower automotive research and development spending within Transportation Technologies.

Adjusted and statutory earnings tell different stories

Investors should not overlook the gap between Intertek's adjusted and statutory figures.

Adjusted diluted earnings per share rose 12.0% to 124.9p at actual exchange rates. Statutory diluted EPS, however, fell 11.1% to 87.1p, while statutory profit after tax declined 13.6% to £145.5 million.

The difference largely reflects separately disclosed items totalling £58.5 million after tax. These included £14.9 million of acquired intangible amortisation, £11.0 million of takeover-related fees and a significant tax charge relating to previous periods.

The statutory effective tax rate rose to 40.0%, compared with an adjusted rate of 26.0%. Net financing costs also increased because Intertek carried more debt.

Adjusted figures are useful for assessing underlying trading, but the statutory decline is still a real negative and deserves attention.

Debt is higher, although full-year guidance improved

Financial net debt increased to £1,145.5 million from £800.6 million, with net debt equal to 1.4 times adjusted EBITDA, compared with 1.0 times a year earlier. The weighted average interest rate increased from 3.3% to 3.9%.

The company nevertheless cut its forecast for year-end financial net debt to between £800 million and £850 million, from previous guidance of £930 million to £980 million.

That improvement reflects stronger first-half free cash flow and the decision not to pay an interim dividend. Under the terms of the EQT offer, any dividend other than the already-paid 2025 final dividend would reduce the cash consideration received by shareholders.

The lack of an interim payout is therefore linked to preserving the takeover value rather than weak cash generation.

Full-year guidance remains intact

Intertek continues to expect mid-single-digit like-for-like revenue growth at constant currency, further margin progression, strong earnings growth and strong free cash flow in 2026.

Capital expenditure is forecast at £135 million to £145 million, net finance costs at £69 million to £70 million and the effective adjusted tax rate at 25.5% to 26.5%.

There was no upgrade to the main profit outlook, but the first-half performance leaves the business well placed against those objectives. This follows the sort of margin-led progress also seen in other industrial results, including Weir Group's 2026 half-year update.

The EQT vote now takes priority

The positives are clear: underlying revenue advanced across four of five divisions, margins expanded materially and free cash flow improved sharply. Intertek is also moving closer to its medium-term target of an adjusted operating margin above 18.5%.

The main operational concerns are weaker World of Energy profitability, higher debt and financing costs, and the decline in statutory earnings caused partly by the elevated tax charge.

For current shareholders, though, the immediate focus is the recommended EQT transaction. The operational results support the picture of a growing, cash-generative business, but the next major milestones are shareholder approval, regulatory clearance and completion of the scheme.

The full financial statements and takeover update are available in the original company announcement.