Intertek begins strategic review, eyes sale of Energy & Infrastructure

Intertek Group PLC on Tuesday said it had launched a strategic review and was considering selling its Energy & Infrastructure business.

The London-based assurance, inspection, product testing and certification company is weighing up either a sale or demerger of Intertek Energy & Infrastructure from Intertek.

Intertek Energy & Infrastructure includes the World of Energy and Industry & Infrastructure units, contributing about £1.58 billion of revenue in 2025, down 0.6% from the year prior on a reported basis, but up 2.3% at constant currency.

Intertek Testing & Assurance, which accounted for £1.86 billion of revenue in 2025, up 2.7% on-year and up 6.1% at constant FX, comprises Consumer Products, Corporate Assurance, and Health & Safety.

The strategic review will consider whether Energy & Infrastructure and Testing & Assurance ‘would be better positioned as separate businesses to unlock their full potential’, Intertek explained.

‘This would be supported by a focused specialist portfolio strategy, sharper capital allocation, and faster in-market execution,’ added Chief Executive Andre Lacroix.

The strategic review will conclude and be implemented by mid-2027.

Intertek shares rose 14% to 4,344.00 pence on Tuesday morning in London.

In the three months ended March 31, the company’s revenue rose 3.7% on-year to £838.5 million, or 6.7% at constant FX. LFL revenue rose 2.4% to £828.3 million from £808.9 million, or 5.4% at constant FX.

In terms of reported revenue for the first quarter, Consumer Products rose 2.5% on-year to £232.6 million, Corporate Assurance was 8.2% higher at £126.5 million, Health & Safety was up 16% to £92.2 million, and Industry & Infrastructure ticked up 2.8% to £209.9 million.

World of Energy’s quarterly sales fell 2.4% on a reported basis to £177.3 million from £181.6 million. On a constant-currency basis, World of Energy edged up 0.2%, which Intertek described as ‘a stable performance’.

The company noted ‘a strong start’ to 2026 and reaffirmed its full-year guidance. It continues to target mid-single-digit like-for-like revenue growth at constant FX, continuous margin progression, strong earnings growth, and strong free cash flow, alongside an ‘excellent’ return on invested capital, Lacroix added.

For 2026 as a whole, Intertek is targeting capital expenditure between £150 million and £160 million, net finance costs of £71 million to £72 million, an effective tax rate of roughly 26% to 27%, minority interests of £21 million to £22 million, and a payout ratio of 65%.

It sees net financial debt ranging from £930 million to £980 million by the year-end, compared with £996.8 million at the end of 2025, and before ‘any material movements due to FX or M&A’.

Nonetheless, Intertek flagged the impact of conflict between the US, Israel and Iran on its business in the first quarter. Within Consumer Products, the Government & Trade Services business, which is involved in import certifications for Middle Eastern and African governments, saw ‘a trading slowdown in March following the start of the conflict in the Middle East’.

Within Industry & Infrastructure, Industry Services reported low-single digit revenue growth. This reflected higher capex investment by Intertek’s customers in oil, gas and renewables, ‘offset by temporary business disruption in the Middle East’. World of Energy was also affected by ‘reduced imports from the Middle East into Asia’.

Copyright 2026 Alliance News Ltd. All Rights Reserved.