IMDEX Navigates Market Contraction While Targeting Net Cash by FY26

Resilience in a Challenging Market

IMDEX Limited, a global leader in mining technology, has demonstrated notable resilience in its FY2025 first half results, released on 12 February 2025. Despite a sustained 19% contraction in global minerals exploration activity, the company achieved half-on-half revenue growth, reaching $212 million. This performance underscores IMDEX's ability to capture market share and expand its footprint even amid sector headwinds.

CEO Paul House highlighted the company’s strategic execution and operational discipline as key drivers behind this outcome. "IMDEX has once again demonstrated its resilience, methodically executing on our strategy and continuing to outperform market conditions," he said, acknowledging the global teams’ commitment to delivering value.

Financial Discipline and Margin Stability

While normalised EBITDA declined 9.9% year-on-year to $64 million, the EBITDA margin held steady at 30.2%, matching the prior corresponding period. This margin stability reflects rigorous cost control and the successful delivery of operational synergies despite inflationary pressures. The company’s cash conversion rate remained robust at 96%, and net debt was reduced to $15 million, down from $24.2 million a year earlier, positioning IMDEX on track to achieve a net cash position by FY26.

IMDEX’s capital management approach remains disciplined, balancing investment in R&D, maintained at approximately 8% of revenue, with shareholder returns. The board declared an interim fully franked dividend of 1.5 cents per share, consistent with prior payouts, signaling confidence in the company’s financial health and outlook.

Growth in Digital and IMT Divisions

The company’s Digital and IMDEX Mining Technology (IMT) divisions delivered impressive growth. SaaS revenues from Datarock surged 107%, while Krux Analytics and IOGAS™ also posted double-digit increases. IMT revenue jumped 72% year-on-year, with solutions like BHS™, BOLT™, BLASTDOG™, and MINEPORTAL™ now deployed across more than 40 global sites.

IMDEX is advancing its technology leadership with next-generation sensors, including the scaled-up production of the IMDEX ACTx™ core orientation sensor. The expansion of Devico sensor revenues through the IMDEX sales network further supports the company’s integrated solutions strategy, which aims to deepen client engagement and increase product adoption.

Strategic Outlook and ESG Commitment

Looking ahead, IMDEX anticipates steady near-term market activity tempered by inflation and geopolitical tensions but remains optimistic about FY26 and beyond. The company notes that global exploration budgets are still well below historic peaks, with Australian resource companies signaling increased exploration plans for calendar 2025. IMDEX continues to monitor commodity supply-demand dynamics, particularly for copper and gold, which dominate exploration activity.

On the ESG front, IMDEX is progressing towards its FY25 sustainability targets, with strong safety performance, increased R&D investment, and enhanced environmental data governance. The company also emphasizes social responsibility through its Global Volunteering Program and governance improvements, including consolidated modern slavery reporting.

Leadership Transition and Capital Strategy

The period also saw a key leadership transition with Linda Lim appointed CFO, succeeding Paul Evans after his 18-year tenure. Lim’s prior role as Global Head of Finance and deep business knowledge have ensured a smooth handover during this pivotal growth phase.

IMDEX’s capital management policy remains focused on sustainable dividends, debt reduction, and strategic investments in core and new business growth areas. The company’s balanced approach aims to capitalize on an eventual sector recovery and deliver long-term shareholder value.