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Highlights

  • Group organic revenue dipped 3% in Q1 2025, with foreign exchange and divestiture impacts pushing adjusted revenue down 5%.

  • Strategic review initiated for Transport sector amid ongoing transformation and historical shareholder returns.

  • Full-year EPS guidance reaffirmed at 129p–136p despite currency headwinds and cyber-related disruptions.

IMI plc (LSE:IMI), the specialist engineering group, has released its trading update for the first quarter of 2025, covering the period from 1 January to 31 March. Despite a 3% drop in organic revenue compared to the same period last year and a 5% decline in adjusted revenue—impacted by adverse currency movements and the sale of IMF in April 2024—the company reported an improvement in Group margins.

The company’s Automation division, which accounted for 64% of 2024 sales, faced a 4% organic revenue decline, primarily due to temporary disruption caused by a cyber incident. Within this segment, Process Automation revenue was down 1% organically, reflecting the 27% growth seen in Q1 2024 and timing variations in project deliveries. However, the division saw a 7% increase in organic orders, bolstered by a 19% rise in aftermarket orders, thanks in part to several large nuclear-related contracts expected to be fulfilled in the coming years.

Industrial Automation saw a steeper 7% organic decline, impacted by both the cyber incident and weak industrial activity in Europe and the Americas.

In the Life Technology segment, which made up 36% of 2024 sales, revenue slipped by 2% organically. Climate Control, however, grew 4% organically, supported by sustained demand for energy-efficient products. Revenue in Life Science and Fluid Control remained flat, while Transport dropped sharply by 16%, as anticipated, given the high base of 19% organic growth in the same quarter last year.

As part of its ongoing transformation, IMI announced a strategic review of its Transport sector, which contributed 8% of Group revenue in 2024. The division serves both traditional and zero-emission commercial vehicle markets. IMI will evaluate whether the sector aligns with its long-term financial framework. Since 2019, the company has delivered consistent growth, with an 11% compound annual growth rate in adjusted earnings per share and over £650 million returned to shareholders. A further £200 million share buyback is currently underway.

The company also highlighted a potential 2% revenue and profit impact for the full year if current exchange rates—$1.33 for the US dollar and €1.17 for the euro—persist. However, IMI remains confident in its ability to mitigate these headwinds through regional manufacturing, pricing adjustments, and agile operations.

Looking ahead, full-year guidance has been reconfirmed, with adjusted earnings per share expected to range between 129p and 136p.