Company Interview / Imdex posts record revenue, eyes further expansion

Key Points

IMDEX (ASX:IMD) posts record first-half revenue despite profit decline due to acquisitionsMarket share gains and 16% top-line growth achieved across all regionsStrategic focus on digital integration and earth science market expansionAcquisitions like Alt Mount Cypress Instruments and Devco portfolio strengthen offeringsRising costs and regulatory pressures seen but underlying activity and demand remain robust

IMDEX (ASX:IMD) reports a 15% dip in first half net profit to $26.2 million, despite achieving record revenue of $246 million and granting an interim dividend of 1.7 cents per share, fully franked. CEO Paul House describes the result as particularly pleasing, highlighting 16% revenue growth and market share gains across all regions, even as the sector has faced three years of declining exploration activity. The company’s normalised EBITDA margin stands strong at 32%, benefiting from strategic investments and a previous legal settlement.

House describes 1H26 as a turning point in the exploration cycle, observing an uptick in activity from both major and junior miners. He points out that the demand for proven reserves, favourable government policies focusing on critical metals, and productivity improvements signal the early stages of a multi-year upcycle. However, House cautions it is too early to call it a supercycle due to potential disruptions.

On strategic growth, House identifies three levers: rising demand for drilling and analysis, execution of a digital strategy integrating hardware and software, and expansion into new earth sciences markets. Recent acquisitions, such as Alt Mount Cypress Instruments and the Devco portfolio, enhance IMDEX’s integrated offerings. Inflation and regulatory pressures remain challenges, but House remains optimistic, expecting exploration budgets to rise by around 20% this year.