IMDEX Records $520m Revenue and 44% Profit Growth on Acquisitions

IMDEX's Record-Breaking Year Fueled by Acquisitions and Organic Growth

IMDEX Limited (ASX:IMD) has smashed its previous records for FY26, reporting a 21% increase in revenue to $520 million and a 44% surge in net profit after tax to $79 million. This strong performance outpaced underlying global exploration activity, signalling significant market share gains and operational leverage within its integrated mining technology platform.

Beyond organic growth, IMDEX completed five strategic acquisitions in FY26; Earth Science Analytics, Datarock, Advanced Logic Technology (ALT), Mount Sopris Instruments, and Krux Analytics; that have materially expanded its technology stack and digital earth science capabilities. These acquisitions contributed approximately $17 million in revenue and are being integrated to unlock synergies across IMDEX’s global network.

Digital Earth Knowledge and Drill Site Technologies Drive Platform Expansion

The company’s platform revenue, which includes connected sensors, software, and advisory services, grew 33% to $246 million, now representing 47% of total group revenue. This shift reflects IMDEX’s evolution from traditional equipment sales to a more technology-enabled, data-driven business model. Next-generation tools on hire doubled their share of the fleet to 12%, underscoring growing customer adoption of advanced digital solutions.

IMDEX’s two core business units; Drill Site Technologies (DST) and Digital Earth Knowledge (DEK); both outperformed the market. DST revenue climbed 19% to $501 million, while DEK, bolstered by acquisitions, surged 85% to $19 million. The DEK segment is fast becoming a high-growth engine, leveraging AI-enabled geoscience analytics to deepen customer insights and recurring revenue streams.

Financial Strength Supports Growth and Shareholder Returns

IMDEX’s EBITDA normalised rose 29% to $163 million with a margin expansion to 31%, reflecting operational leverage and efficient cost management. Operating cash flow normalised was a robust $135 million, translating to an 83% cash conversion rate despite increased working capital investment to support growth and innovation.

The company increased its net debt to $199 million from $13 million in FY25, primarily to fund acquisitions, but maintained a disciplined leverage ratio of 1.3x EBITDA. The Board declared a fully franked final dividend of 1.75 cents per share, lifting the full-year dividend to 3.4 cents, consistent with a 30% payout ratio of normalised NPAT.

Sustainability and Workforce Initiatives Highlighted

IMDEX also advanced its sustainability agenda, with a Lost Time Injury Frequency Rate of zero and a reduced Total Recordable Injury Frequency Rate of 1.09, reflecting a safer workplace. Female workforce participation increased to 25.1%, and the Board achieved 50% female representation. The company voluntarily included climate-related disclosures aligned with emerging Australian standards, despite ASIC relief from mandatory reporting for FY26.

R&D investment remained strong at approximately 8% of revenue ($43 million), focusing on AI, digital platforms, and next-generation technologies to maintain IMDEX’s competitive edge and support future growth horizons.

Looking Ahead: Multiple Growth Levers and Market Tailwinds

With global exploration budgets expected to rise and increasing demand for critical minerals, IMDEX enters FY27 well positioned to capitalise on broad-based market tailwinds. The company plans to deepen customer relationships, scale its DEK platform, and accelerate integration of recent acquisitions to drive recurring revenue growth.

CEO Paul House emphasised the strength of IMDEX’s integrated physical-to-digital platform and the company’s ability to deliver higher-quality earnings from a diversified portfolio. Meanwhile, Chairman Anthony Wooles highlighted disciplined capital management and the company’s capacity to invest through cycles while returning value to shareholders.

Investors will be watching how effectively IMDEX integrates its acquisitions and leverages AI and digital technologies to sustain its market leadership amid evolving exploration and mining dynamics.