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Highlights
- Robust Growth: 4% organic sales growth and 10% organic adjusted operating profit growth, with standout performance in Process Automation.
- Margin Expansion: Adjusted operating margin rose by 100bps to 19.7%, with a new target set at 20%+.
- Shareholder Rewards: 10% increase in final dividend, a £100m share buyback completed, and a further £200m buyback announced.
IMI plc (LSE:IMI), a global engineering group, has delivered a impressive set of results for 2024, driven by strategic execution, pricing power, and focused market innovation. The company reported 4% organic sales growth and a 10% increase in organic adjusted operating profit, highlighting the resilience and adaptability of its business model.
The standout performer was Process Automation, which achieved record-breaking orders heading into 2025. Climate Control also saw significant demand for energy-saving solutions, while Industrial Automation remained steady despite market volatility. However, the Life Science & Fluid Control and Transport segments faced softer conditions, reflecting broader industry challenges.
Margin and Profitability Gains
IMI’s adjusted operating margin climbed by 100 basis points to 19.7%, prompting the company to raise its target to 20%+. This improvement was supported by the successful conclusion of a five-year complexity reduction programme, delivering £15 million in savings for 2024.
Notably, high-margin aftermarket services now account for around 45% of Group sales, further boosting profitability. The return on invested capital also increased to 13.4%, reinforcing the company’s commitment to driving long-term value.
Cash Flow and Financial Strength
IMI maintained significant cash generation, with £263 million in free cash flow for the year and projections of over £1 billion over the next three years. The company’s solid balance sheet, with a net debt-to-EBITDA ratio of 1.0x, provides ample flexibility to pursue growth opportunities and compound earnings per share (EPS) growth.
Capital Allocation and Shareholder Value
In line with its disciplined capital allocation strategy, IMI announced a 10% increase in the final dividend to 21.1p per share. The company also completed a £100 million share buyback in 2024 and announced an additional £200 million buyback to further enhance shareholder returns.
IMI’s strategic acquisitions continue to support its growth ambitions, including the purchase of TWTG, a leading sensor technology business, to accelerate aftermarket expansion. Meanwhile, £149 million in Growth Hub orders for 2025 highlights the company’s commitment to market-led innovation.
