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Investing.com -- IMI (LON:IMI) plc’s stock rose more than 5% on Friday following its full-year 2024 results, which were in line with expectations and reinforced confidence in the company’s financial strength.
IMI’s revenue for the year came in at £2,210 million, marking a 1% year-over-year increase on a reported basis and aligning with consensus estimates.
Organic revenue growth was 4%, slightly ahead of J.P. Morgan’s forecast of 3.5%. Adjusted EBITA reached £436 million, up 6% year-over-year on a reported basis and 10% on an organic basis, with margins improving to 19.7%, exceeding consensus expectations by 10 basis points.
J.P. Morgan said that IMI’s adjusted EPS guidance for 2025, set between 129p and 136p, falls within consensus expectations.
This outlook remains unchanged despite the financial impact of a recent cyberattack, which IMI expects will result in an exceptional charge of £20-25 million in 2025.
The company has returned to normal operations after implementing IT recovery measures and security upgrades.
IMI’s Automation division led the way, with Process Automation delivering 15% organic sales growth, contributing to an 8% overall increase for the segment.
Meanwhile, Life Technology remained broadly flat, though Climate Control saw a 5% rise. Cash conversion was strong at 92%, up from 89% in 2023, while net debt stood at £548 million, aligning with expectations and reflecting ongoing financial discipline.
In a move that further underscores confidence in future performance, IMI announced a £200 million share buyback and reaffirmed its target of generating over £1 billion in free cash flow over the next three years.
Additionally, the company raised its mid-term EBITA margin target from 20% to above 20%, signaling further efficiency gains ahead.
Both Jefferies and J.P. Morgan reiterated their positive outlooks on IMI. Jefferies maintained its "buy" rating, citing strong execution and attractive valuation, while J.P. Morgan reaffirmed its "overweight" stance, increasing its June 2026 price target to 2,290p from 2,275p.