The company reported another year of solid progress in 2025. Revenue rose 4% to £2.304bn, or 5% on an organic basis, while statutory profit before tax climbed to £418.5m from £330.4m. Earnings per share rose sharply to 124.3p from 96.0p on a statutory basis.
The strong cash generation allowed management to reward shareholders again. The board proposed a 10% increase in the annual dividend to 34.2p per share and announced a £500m share buyback programme.
Quiet engineering, strong margins
IMI's business is not glamorous. Founded in the 19th century as Imperial Metal Industries, the firm now specialises in fluid and motion control technology. Its valves and actuators regulate the flow of liquids and gases in industrial processes. These parts are small but critical. If they fail, factories, power plants or heating systems can grind to a halt.
That niche position helps explain the company's unusually strong margins for a mid sized industrial supplier. Adjusted operating margins reached 20% in 2025, slightly higher than the previous year.
Another advantage is the aftermarket business. Roughly 45% of revenue comes from servicing and replacing equipment already installed in customers' systems. Such work tends to be less cyclical and more profitable than selling new hardware.
Automation does the heavy lifting
Growth last year was driven mainly by the Automation division, which serves energy and industrial customers. Demand has been supported by trends such as electrification and the rapid expansion of data centres, both of which require complex control systems.
The company's Life Technology unit was steadier. Climate control equipment performed well thanks to demand for energy efficient buildings, while the transport segment weakened alongside the global heavy truck market.
Even so, the overall picture remains one of gradual progress rather than dramatic expansion.
A steady compounding machine
Investors appear willing to pay for that stability. IMI is valued at roughly 23 times adjusted earnings.
That valuation suggests the market sees IMI less as a cyclical manufacturer and more as a dependable industrial compounder. The company has now delivered five consecutive years of mid single digit organic revenue growth, alongside improving margins and strong cash generation.
In a sector known for volatility, that sort of consistency is rare. For IMI, the formula is simple: small components, critical functions and steady profits. Investors seem content with exactly that.
