Intertek shares surge on $444.5 million buyback and margin target boost

Published 04/03/2025, 10:56
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Investing.com -- Intertek, the UK-based testing, inspection, and certification firm, has announced a buyback of shares worth £350 million, equivalent to $444.5 million.

This announcement led to a 5.4% rise in Intertek’s shares, which traded at 5,430 pence in early European trade on Tuesday.

The firm also increased its medium-term earnings margin target following robust full-year results.

Previously, Intertek had set a target of 17.5% for the margin on earnings before interest, taxes, and amortization (EBITA). However, the company now expects this margin to hit 18.5% in the medium term.

This new guidance comes after the company’s full-year EBITA of £590.1 million, which surpassed analysts’ expectations of £589.1 million.

The company, which is listed on the London Stock Exchange (LON:LSEG), also reported a 6.3% growth in like-for-like revenue at constant currency, amounting to £3.38 billion for the full year 2024.

The operating margin was 17.4%, a rise from the previous year’s 16.6%. Additionally, the company’s profit after tax increased by 15% to £367.2 million.

In a move to boost shareholder returns, Intertek announced a 40% increase in the full-year dividend to 156.5 pence along with the £350 million share buyback.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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