Intertek shares tumble as FX headwinds overshadow solid first half

Published 01/08/2025, 08:24
Updated 01/08/2025, 08:48

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.