Imdex Ltd (ASX:IMD) Reports Record FY26 Earnings as Platform Revenue Expands

Aditi Sarkar

01 October 2026 11:05 PM AEST

Imdex Ltd (ASX:IMD) Reports Record FY26 Earnings as Platform Revenue Expands

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Highlights

• FY26 Revenue rose to A$520 million, while normalised EBITDA increased to A$163 million and normalised net profit reached A$59 million.

• Platform revenue represented 47% of group revenue, reflecting the shift toward connected and data-led offerings.

• Five acquisitions added capability in artificial intelligence, analytics, software and downhole instrumentation.

• Operating Cash Flow was A$126 million, net Debt was A$199 million and the full-year Dividend reached 3.4 cents per share.

Imdex Ltd (ASX:IMD) supplies Mining technology used at drill sites, combining downhole instruments with digital tools that help mining and exploration customers interpret geological data. FY26 showed the Business moving further toward a connected platform model, with record revenue and Earnings and a larger contribution from software-style products. The shift broadens the revenue mix beyond equipment sales that can move with exploration cycles.

FY26 Earnings and Cash Generation

Revenue increased 21% to A$520 million from A$431 million. Normalised EBITDA rose 29% to A$163 million, lifting the Margin to about 31% from 29%. Normalised net profit after tax increased 37% to A$59 million, while reported net profit reached A$79 million. Operating cash flow was A$126 million, or A$135 million on a normalised basis, with 83% cash conversion. Capital Expenditure was A$69 million and Research and Development Investment was A$43 million. The final dividend of 1.75 cents per share took the full-year dividend to 3.4 cents, fully franked.

Platform Revenue Expands

Platform revenue represented 47% of group revenue in FY26, compared with 33% in FY21. Imdex connects its instruments so the data they generate flows into software and analytics products. This gives the company exposure to field hardware and the digital tools used to interpret drilling information. The source material indicates that management sees the rising platform share as the intended outcome of its fleet connectivity strategy.

Five Acquisitions Add Capability

Imdex completed five acquisitions during FY26: Earth Science Analytics, Datarock, Advanced Logic Technology, Mount Sopris Instruments and the remaining interest in Krux Analytics. Together they add artificial intelligence, geoscience analytics, software, downhole instrumentation and digital mining capability. The strategic aim is to combine instruments and interpretation tools within a connected ecosystem. The immediate task is integration, with management expecting continued investment and higher Depreciation and amortisation.

Balance Sheet and FY27 Considerations

Net debt stood at A$199 million at year-end, equal to 1.3 times leverage, which the company said was within its targeted range. July revenue was reported to have exceeded June and set another monthly record, although one month does not establish a full-year trend. Imdex guided to a normalised tax rate of 32% for FY27 but did not provide a numerical earnings forecast in the source material. Exploration activity, Acquisition integration and cash generation therefore remain important indicators.

Risks and Operating Priorities

Demand remains linked to exploration and mine-development budgets, so weaker drilling activity could affect instruments, services and platform revenue. Integrating five businesses in one year also brings execution risk, including retaining specialist staff and realising cross-selling benefits. Financing costs, Leverage and higher depreciation and Amortisation may affect reported earnings. Technology adoption can also take time in field environments, making customer uptake important to the contribution from acquired capabilities.

Key Insights

Imdex exited FY26 with record revenue and earnings and a materially larger platform contribution. The company is using acquisitions to broaden the software, analytics and instrumentation capabilities around its connected fleet. FY27 will test how effectively those businesses are integrated while leverage is managed. Platform growth, disciplined cash generation and exploration activity across major mining regions will be central to the next phase.

FAQs

Q: What does Imdex Ltd (ASX:IMD) do?

A:Imdex supplies drill-site instruments and digital tools used by mining and exploration companies to collect and analyse geological data.

Q: What was Imdex's FY26 revenue?

A:FY26 revenue was A$520 million, up 21% from the prior year.

Q: How important is platform revenue?

A:Platform revenue accounted for 47% of group revenue in FY26, up from 33% in FY21.

Q: How many acquisitions were completed in FY26?

A:Five acquisitions were completed across analytics, software, artificial intelligence and downhole instrumentation.

Q: What are the main FY27 risks?

A:Key risks include weaker exploration spending, acquisition integration, leverage, financing costs and customer adoption of new technology.

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