Intertek reports solid start to 2025, reaffirms guidance

LONDON - Intertek Group plc (LSE:LON:ITRK) on Thursday reported a 4.5% like-for-like (LFL) revenue growth at constant currency for the first four months of 2025, slightly below analyst expectations but showing strength in key divisions.

The company reaffirmed its full-year outlook, expecting mid-single digit LFL revenue growth, margin progression, and strong cash generation.

The global quality assurance provider saw revenue reach £1,093.9 million for the January-April period, representing a 4.6% increase at constant currency and 1.2% at actual rates.

The company’s higher-margin divisions performed strongly, with Consumer Products growing 7.8% LFL and Corporate Assurance up 8.9% LFL. Health and Safety and Industry and Infrastructure divisions grew 3.5% and 2.7% LFL respectively, while the World of Energy division remained stable.

Despite missing overall revenue expectations by approximately 3.5%, Intertek reported robust margin progression driven by divisional mix, good operating leverage, and productivity improvements.

The company also highlighted strong free cash flow generation and the commencement of its £350 million share buyback program, with £75.3 million already repurchased.

CEO André Lacroix commented on the results, stating, "We have had a good start to the year, with strong LFL revenue growth in our higher margin divisions. Our role in society is mission-critical, providing a unique suite of industry-leading ATIC solutions to over 400,000 clients across every industry and region in each of our five divisions."

Intertek’s Consumer Products division saw double-digit LFL growth in Softlines, mid-single digit growth in Hardlines and Electrical & Connected World, and high-single digit growth in the GTS sub-division.

However, the World of Energy division experienced a slowdown in North America, and the Health and Safety division faced challenges in its Chemicals & Pharma sub-division.

The company remains confident in its outlook for 2025, citing increased client focus on risk-based quality assurance and new opportunities arising from changing global trade routes and supply chains.

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