Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Intertek’s adjusted EPS increased by 12.6% to 111.5p at constant currency in H1 FY25.
  • Operating cash flow reached GBP 266 million with a cash conversion rate of 118%.
  • Like-for-like revenue grew 4.5% across key divisions including Consumer Products and Corporate Assurance.

Intertek Group PLC (LSE:ITRK) posted higher earnings and cash flow for the six months ended 30 June 2025, driven by consistent revenue growth across its five operating divisions and continued investment in operational efficiency and acquisitions. The company recorded adjusted diluted earnings per share of 111.5p, up 12.6 percent at constant currency, and delivered GBP 266 million in adjusted operating cash flow with a conversion rate of 118 percent.

Total revenue for the period stood at GBP 1,672.7 million, a 4.5 percent increase at constant currency and a marginal 0.2 percent increase at actual rates. Like-for-like revenue, which excludes the impact of acquisitions and disposals, also grew 4.5 percent. Intertek attributed this to sustained demand for its Assurance, Testing, Inspection, and Certification (ATIC) services across key sectors.

Adjusted operating profit rose to GBP 276.3 million, a 9.7 percent improvement at constant currency. Operating margin expanded by 80 basis points to 16.5 percent, supported by mix, pricing initiatives, cost discipline, and productivity enhancements. Consumer Products and Corporate Assurance, two of the company's most profitable divisions, posted like-for-like revenue growth of 7.9 percent and 8.2 percent respectively. Health and Safety rose 3.2 percent, Industry and Infrastructure grew by 3.0 percent, and World of Energy remained flat.

The company maintained a gearing ratio of 1.0 times net debt to EBITDA with net financial debt at GBP 800.6 million. Capital expenditure rose 11 percent year-on-year, with growth investments including the acquisition of TESIS in Brazil and development of new digital platforms SupplyTek and AI². A share buyback program launched in March saw GBP 187 million spent on repurchasing 4 million shares from the GBP 350 million authorised.

Despite a 38.2 percent decline in free cash flow to GBP 56.0 million due to investment-related outflows, Intertek raised its interim dividend by 6.3 percent to 57.3p per share. The return on invested capital improved to 22.5 percent, up 170 basis points on a constant currency basis.

Intertek confirmed it is on track to meet its full-year 2025 guidance, which includes mid-single digit like-for-like revenue growth, margin expansion, and significant free cash flow. The company also reiterated its medium-term goals of achieving over 18.5 percent operating margin and maintaining returns through both organic and inorganic growth.

Intertek stated it remains focused on executing its strategy to meet this demand while continuing to improve earnings quality and return metrics.

ITRK shares were trading 7.37% lower at GBX 4,576.00 per share as of 1 August 2025.