IMDEX Reports 29% EBITDA Margin and Cuts Net Debt by $22 Million in FY25
IMDEX Limited reported a resilient FY25 with steady margins, reduced net debt, and strategic acquisitions positioning it for growth. The company’s FY26 outlook is optimistic, supported by improving global exploration activity and technology adoption.
- FY25 revenue of $431 million, down 3% but margins held at 29%
- Net debt reduced by $22 million to $13 million, leverage ratio at 0.1x
- Strong 95% cash conversion rate supports growth investments
- Strategic acquisitions of Krux, Datarock, and ESA enhance digital capabilities
- Positive FY26 outlook driven by rising global exploration and technology uptake
Steady Performance in a Challenging Market
IMDEX Limited (ASX – IMD), a global leader in mining technology, presented its FY25 results at the recent Annual General Meeting, revealing a business that has weathered a softening market with resilience. Despite a 3% decline in revenue to $431 million, the company maintained a robust EBITDA margin of 29%, underscoring disciplined cost management and a strategic shift towards higher-margin sensors, services, and software.
The company’s normalised EBITDA stood at $126 million, with reported EBITDA slightly higher at $130 million, reflecting the resolution of long-standing legal matters. This financial steadiness is notable given the broader industry headwinds and rising cost pressures.
Capital Discipline and Debt Reduction
IMDEX’s capital management remains a highlight, with a strong 95% cash conversion rate from EBITDA to operating cash flow. The company successfully reduced net debt by $22 million to $13 million, achieving a leverage ratio of just 0.1x. This conservative balance sheet strategy provides ample capacity for reinvestment and strategic acquisitions without compromising shareholder returns.
The Board declared a fully franked dividend of 2.5 cents per share, maintaining a 30% payout ratio of normalised net profit after tax, reflecting confidence in the company’s cash flow generation and future prospects.
Strategic Growth Through Innovation and Acquisitions
IMDEX’s FY25 was marked by significant strategic progress. The company’s two core business units, Drill Site Technologies and Digital Earth Knowledge, continue to evolve, with strong customer engagement and technology adoption driving growth. Notably, acquisitions of Krux, Datarock, and ESA have expanded IMDEX’s digital earth knowledge capabilities, positioning it as a platform leader in mining intelligence.
Revenue from sensors, services, and software increased to 66% of total revenue, up from 64% the previous year, highlighting the successful integration and market acceptance of next-generation technologies such as the OMNIxBOLT and ACTx tools.
Global Market Outlook and Regional Performance
The company’s outlook for FY26 is optimistic, supported by improving global exploration activity and favourable industry dynamics. IMDEX reported a strong 10% revenue increase in the first quarter of FY26 compared to the prior year, with a 3% rise quarter-on-quarter. Growth is particularly strong in the Americas, driven by US and Canadian activity, and in South America, where copper demand remains robust.
In the Asia-Pacific region, increased exploration in Papua New Guinea and the Philippines, alongside steady gold drilling in Western Australia, supports ongoing expansion. Europe and Africa maintain stable activity, with policy-driven demand for critical minerals underpinning growth opportunities.
ESG and Innovation as Pillars of Sustainable Growth
IMDEX also emphasized its commitment to environmental, social, and governance (ESG) initiatives, reporting strong safety compliance and advancing climate-related disclosures. Investment in research and development remains a priority, aimed at delivering productivity-enhancing and environmentally responsible solutions.
The company’s leadership highlighted the importance of its diverse and talented workforce in driving innovation and maintaining its competitive edge in a complex and evolving industry landscape.
Bottom Line?
IMDEX’s disciplined execution and strategic investments set the stage for capturing growth as mining exploration activity rebounds globally.
Questions in the middle?
- How will recent acquisitions integrate and contribute to IMDEX’s revenue and margins in FY26?
- What impact will fluctuating exploration budgets and commodity prices have on IMDEX’s growth trajectory?
- How effectively can IMDEX leverage its technology leadership to expand into new earth science and non-mining markets?
