Imdex Limited (ASX:IMD) delivered record FY26 Revenue and normalised Earnings while completing five acquisitions that expanded its technology and digital earth science capabilities. Organic growth remained the main contributor to the year’s revenue increase, while the acquired businesses added further scale. The transactions also lifted net debt, making successful integration, continued cash generation and earnings growth important measures as the company progresses through FY27.

What the Company Does

Imdex provides technology used across mineral exploration, resource development and Mining operations.

Its products include drilling optimisation technologies, sensors, cloud-connected tools and geological data solutions. The company increasingly combines physical technologies with software, artificial intelligence and analytics through an integrated platform designed to help customers collect, interpret and use subsurface information.

This model gives Imdex exposure to exploration activity as well as growing Demand for digital mining and geoscience solutions.

FY26 Revenue Reaches a Record

Revenue increased 21% to A$520 million in FY26 from A$431 million in FY25.

Normalised EBITDA rose 29% to a record A$163 million, with the normalised EBITDA Margin increasing to just above 31%.

Normalised NPAT reached a record A$59 million, while normalised NPATA increased to A$70 million. Normalised Earnings Per Share increased 37% to 11.5 cents.

The result reflected growth across all operating regions and segments, with earnings increasing faster than revenue during the year.

Organic Growth Remains the Main Contributor

Of the A$89 million year-on-year increase in revenue, approximately A$72 million came from organic growth.

This represented organic revenue growth of around 17%, supported by Market Share gains, increased adoption of technology and growth across multiple regions.

The five acquisitions completed during FY26 contributed approximately A$17 million of reported revenue because several were owned for only part of the financial year.

On a full-year-equivalent basis, the acquired businesses represented approximately A$51 million of annualised revenue, giving FY27 a larger contribution from businesses added during FY26.

Five Acquisitions Broaden the Platform

Imdex completed five acquisitions during FY26 involving Earth Science Analytics, Datarock, Advanced Logic Technology, Mount Sopris Instruments and Krux Analytics.

The transactions expanded the group's capabilities across artificial intelligence, cloud-based geoscience, borehole logging, sensing technologies and digital workflow solutions.

Imdex's focus in FY27 is shifting toward integrating these technologies and businesses across its existing global sales and service network.

The acquisitions also increase the opportunity to offer a broader range of technologies to existing customers across exploration, mining, energy and other earth science markets.

Platform Revenue Gains Importance

Platform revenue increased to A$246 million during FY26 and represented 47% of total group revenue.

This compares with 33% of group revenue five years earlier and reflects increased customer adoption of connected sensors, software and platform-based services.

Digital Earth Knowledge recorded an 85% increase in revenue during FY26, supported by existing software products and contributions from recently acquired businesses.

The changing revenue mix indicates that Imdex is becoming less dependent on individual drilling tools and increasingly exposed to recurring and digitally enabled services.

Cash Generation Supports Investment

Cash conversion was 83% during FY26, while normalised Operating Cash Flow reached approximately A$135 million.

Imdex continued investing in technology, with Research and Development expenditure of A$43 million during the year. Capital Expenditure increased to A$69 million as the company invested in next-generation technologies and its broader platform.

The board declared a fully franked final Dividend of 1.75 cents per share, taking total FY26 dividends to 3.4 cents per share, an increase of 36%.

Acquisitions Lift Net Debt

Net Debt increased to A$199 million following completion of the five acquisitions.

The company's Leverage Ratio was 1.3 times at 30 June 2026, remaining within its targeted capital range.

Higher debt means future cash generation will be important as Imdex balances integration expenditure, research and development, capital Investment and Shareholder distributions.

The group has previously demonstrated an ability to reduce acquisition-related debt, but the enlarged Balance Sheet remains more exposed to changes in earnings and financing costs than before the FY26 Acquisition program.

FY27 Starts With Record Trading

Trading momentum continued into the beginning of FY27. June 2026 generated record monthly revenue, followed by another record in July that exceeded the June result.

Imdex expects FY27 to benefit from a full-year contribution from the five businesses acquired during FY26.

Management is also focused on integrating acquired technologies, expanding the platform across its global customer network and investing in systems capable of supporting further scale.

However, a record first month does not establish the trend for the full financial year, meaning subsequent trading periods will provide a clearer indication of FY27 performance.

Key Risks and Areas to Watch

Demand remains linked to mineral exploration and mining expenditure, which can change with Commodity prices, project Economics and access to exploration funding.

Acquisition integration also presents execution risk. Imdex must combine different technologies, teams and customer relationships while converting potential commercial and operating synergies into earnings.

Higher net debt increases sensitivity to financing costs and weaker operating conditions.

The pace of Digital Earth Knowledge growth, platform revenue penetration, leverage reduction and the contribution from acquired businesses will therefore be important indicators during FY27.