IMI lifts payout, launches new share buyback amid strong profit growth
IMI PLC on Friday announced a new £500 million share buyback as it reported what it called another year of ‘high-quality’ revenue and profit growth.
The Birmingham based designer of engineering products in fluid and motion control applications said pretax profit rose 27% to £419 million in 2025 from £330 million the year prior.
Revenue increased 4.1%, or 5% organically, to £2.30 billion from £2.21 billion in 2024.
Basic earnings per share rose 29% to 124.3 pence from 96.0p, and grew 8.0% to 132.3p from 122.5p on an adjusted basis.
Automation revenue rose 8% organically, reflecting an excellent performance from Process Automation, and a resilient showing in Industrial Automation, despite uncertain markets.
Life Technology revenue grew 1% organically, with strong demand for energy-saving solutions in Climate Control. Life Science & Fluid Control was broadly flat as markets began to stabilise, while Transport was down in line with the global heavy duty truck market.
IMI said around 45% of revenue was generated from the higher margin aftermarket. Adjusted overall operating margin improved to 20.0% from 19.7%.
‘The execution of our growth strategy is creating significant value for shareholders, and we delivered another strong performance in 2025. We have now delivered five consecutive years of mid-single digit organic revenue growth and expanded margins to meet our medium-term target of 20%+,’ said IMI Chief Executive Roy Twite.
Looking ahead, CEO Twite said IMI expects to deliver another year of strong financial and strategic progress in 2026.
IMI expects full year adjusted basic EPS to be between 136p and 142p, which Twite said is the sixth consecutive year of mid-single digit organic revenue growth.
‘By deploying our growing free cash flow into organic growth opportunities, attractive acquisitions and value enhancing share buybacks, we are confident we can continue our track record of compounding adjusted EPS growth,’ IMI said.
On Friday, the company announced a £500 million share buyback and said it will look to return additional capital to shareholders and enhance returns should leverage fall sustainably below its 1.0 times to 2.0x target range.
IMI proposed a final dividend of of 23.2p per share, up 10% from 21.1p, taking the total payout to 34.2p per share, up 10% from 31.1p.
Shares in IMI rose 3.1% to 2,838.00p each in London on Friday. The wider FTSE 100 was up 0.3%.
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