IMDEX Reports $73M EBITDA, 30% Margin Amid 10% Revenue Decline in 1H25

Financial Performance Amid Challenging Market Conditions

IMDEX Limited (ASX: IMD), a global leader in mining technology, released its half-year results for 2025, revealing a nuanced performance shaped by a difficult exploration environment. Group revenue declined by 10% to $212 million compared to the prior corresponding period, reflecting a 19% drop in global exploration drilling activity. Despite this, the company demonstrated operational resilience, delivering a 28% increase in reported EBITDA to $73 million while maintaining a robust EBITDA margin of 30%.

The revenue contraction was largely driven by subdued market activity in key regions such as Asia Pacific and Europe/Africa, where geopolitical and economic factors weighed on exploration budgets. However, the Americas region showed relative strength, with the USA leading growth and South American projects poised for a rebound in the second half of the year.

Strategic Growth in Digital and Mining Technologies

IMDEX’s strategic focus on expanding its digital and mining technologies (IMT) businesses is gaining traction. SaaS revenues from platforms like Krux Analytics and Datarock more than doubled year-on-year, highlighting the company’s successful pivot towards higher-margin, technology-driven offerings. The IMT segment grew 72% compared to 1H24, underpinned by strong demand for products such as BLASTDOG™ and MINEPORTAL™, which provide real-time geophysical data and analytics to mining operators globally.

This diversification is critical as IMDEX seeks to offset cyclical pressures in traditional exploration services. The company’s investment in next-generation sensors and integrated solutions is positioning it well to capture market share as mining operations increasingly adopt digital workflows and automation.

Robust Balance Sheet and Cash Flow Discipline

IMDEX reported a strong cash conversion rate of 96% on normalized EBITDA, reflecting disciplined working capital management despite the revenue headwinds. Net debt was reduced significantly to $15 million, down from $46 million in 1H24, with a leverage ratio of just 0.2x. This financial strength provides flexibility for potential acquisitions and continued investment in R&D and growth initiatives.

The company declared an interim fully franked dividend of 1.5 cents per share, consistent with the prior year, signaling confidence in its cash flow generation and commitment to shareholder returns. Management reaffirmed its target to achieve a net cash position by FY26, underscoring a conservative approach to balance sheet management amid uncertain market conditions.

Outlook and Industry Dynamics

Looking ahead, IMDEX is cautiously optimistic about an uptick in mining exploration activity in FY26. The company points to improving commodity prices, particularly for gold and copper, and increased exploration budgets from Australian resource companies as positive signals. Additionally, recent mergers and acquisitions in the mining sector are expected to stimulate demand for IMDEX’s integrated technology solutions.

IMDEX’s leadership emphasizes its continued commitment to innovation, sustainability, and market share expansion. The company’s ESG initiatives, including enhanced safety performance and greenhouse gas emissions reporting, align with broader industry trends towards responsible mining practices.

Overall, IMDEX’s half-year results reflect a company navigating a challenging external environment with strategic agility, leveraging technology and operational discipline to sustain growth and prepare for a market recovery.