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Investing.com -- Intertek Group PLC (LON:ITRK) on Friday reported solid first-half results with adjusted EBITA of £276 million, in line with analyst expectations, while adjusted EBITA margins improved 60 basis points year-over-year to 16.5%, ahead of the 16.3% consensus.
However, shares tumbled 6.2% as increased foreign exchange headwinds overshadowed the performance.
The testing and inspection services provider posted organic growth of 4.5% for the first half, slightly below consensus expectations of 4.7%.
The company maintained its full-year 2025 outlook for mid-single-digit organic growth, margin progression, and strong free cash flow, but warned that foreign exchange would now create a 350 basis point headwind to revenues and a 500 basis point headwind to earnings, up from previous estimates of 250 and 350 basis points respectively.
The Consumer Products division was the standout performer, delivering 7.9% organic growth against expectations of 7.3%, with margins expanding 200 basis points to 28.2%.
Based on this strong performance, Intertek raised its full-year 2025 outlook for the division to high-single-digit like-for-like growth from mid-single-digit previously.
Corporate Assurance also performed well with 8.2% organic growth, though slightly below the 8.4% consensus, while margins improved 50 basis points to 22.1%.
However, the Health & Safety, Industry & Infrastructure, and World of Energy divisions all underperformed expectations, with the latter reporting flat organic growth against consensus of 1.6%.
"Our Consumer Products division delivered an outstanding performance, demonstrating the strength of our diversified portfolio," said the company’s CEO. "While we’re facing increased currency headwinds, our underlying business remains robust with continued margin progression."
The company reduced its organic growth outlook for both the Health & Safety and Industry & Infrastructure divisions from mid-single-digit to low-single-digit growth for fiscal year 2025, reflecting ongoing challenges in these segments.