IMDEX Limited (ASX:IMD) is a global Mining technology company providing drilling optimisation products, downhole instruments, sensors, geoscience analytics and software used across exploration and mining operations. FY26 produced record Revenue and normalised Earnings as IMDEX increased the amount of technology and data services used across customer sites. The result showed how the company can grow faster than overall exploration expenditure when customers adopt more products and digital services across the same drilling programs.

FY26 revenue reaches a record A$520 million

IMDEX reported record FY26 revenue of approximately A$520 million, representing growth of 21%.

Normalised EBITDA reached about A$163 million, an increase of 29%.

The normalised EBITDA Margin expanded to above 31%, indicating that earnings grew faster than revenue during the year.

Normalised Earnings Per Share increased to approximately 11.5 cents.

IMDEX uses normalised measures to remove selected acquisition, integration and other significant costs when assessing underlying operating performance.

The result reflected a combination of organic growth, technology adoption and contributions from businesses acquired during FY26.

Technology allows IMDEX to grow beyond drilling volumes

IMDEX's revenue is linked to mining and exploration activity, but it is not determined solely by the number of metres drilled.

The company supplies products across several stages of the exploration workflow, including drilling fluids, Directional Drilling technologies, downhole sensing, core analysis and geological data platforms.

When customers use a greater number of IMDEX products at the same drilling site, the company can increase revenue without requiring a proportional increase in industry-wide exploration activity.

This is central to IMDEX's growth strategy.

Rather than relying exclusively on higher exploration budgets, the company is seeking to increase the amount of technology and services used across each customer program.

Digital Earth Knowledge becomes a larger business

Digital Earth Knowledge continued to increase its contribution during FY26.

Revenue from the segment grew sharply as IMDEX expanded its portfolio of geological data, analytics and artificial intelligence capabilities.

The Business combines information collected from drilling and sensing equipment with software designed to help customers interpret geological conditions.

This enables mining and exploration teams to use more detailed subsurface information when making decisions about drilling targets, resource definition and mine planning.

Digital products can also create a different revenue profile from traditional drilling equipment because software and data services can be deployed across an existing installed customer base.

The segment therefore represents an important part of IMDEX's effort to broaden earnings beyond physical drilling products.

Integrated solutions increase customer penetration

IMDEX also reported growth from integrated on-site services during FY26.

The number of customer sites using multiple connected IMDEX solutions increased during the year.

This approach is intended to raise the company's share of spending at individual drill sites.

A customer that previously used only drilling fluids, for example, may add sensors, directional tools, geological analysis or digital platforms.

This increases revenue per project while also creating closer links between IMDEX's products.

The strategy depends on proving that connected technologies improve drilling efficiency, data quality or decision-making sufficiently to justify broader customer adoption.

The FY26 result indicates that uptake continued to expand across the company's global customer base.

Market-share gains support above-market growth

IMDEX has said market-share gains contributed materially to FY26 revenue growth.

The company tracks what it describes as its share of wallet, which estimates how much revenue IMDEX captures from every A$100 spent globally on mineral exploration.

IMDEX estimated that its share increased to approximately A$2.40 per A$100 of exploration expenditure in FY26.

That measure illustrates the company's strategy of growing faster than the broader exploration market.

Even if total exploration expenditure changes only modestly, IMDEX can still increase revenue if more customers adopt its technology or if existing customers use a broader range of products.

The measure is an internal company estimate rather than an audited industry statistic, but it provides a way of tracking whether IMDEX is deepening its presence across exploration programs.

Acquisitions broaden the technology platform

IMDEX completed several acquisitions during FY26 as it expanded its digital, analytical and instrumentation capabilities.

The acquired businesses included Earth Science Analytics, Datarock, Advanced Logic Technology, Mount Sopris Instruments and Krux Analytics.

The transactions broaden IMDEX's exposure across geoscience software, artificial intelligence, borehole instruments and drill-site data.

Acquisitions allow IMDEX to add capabilities more quickly than relying entirely on internal development.

They also create integration requirements.

Technology platforms, sales teams, customer relationships and internal systems need to be aligned if the acquired businesses are to contribute effectively to the broader group.

FY27 will therefore include continued integration activity alongside organic growth initiatives.

Earth Science Analytics and Datarock expand digital capabilities

Earth Science Analytics and Datarock strengthen IMDEX's ability to use artificial intelligence and computer vision in geological interpretation.

These technologies can analyse geological information more quickly and consistently than purely manual workflows.

The objective is not simply to collect more data but to help customers convert drilling information into usable geological knowledge.

For IMDEX, these capabilities fit with its strategy of moving further into digital services and analytics.

The value of the acquisitions will depend on adoption across the existing customer network and on the company's ability to combine the software with data generated through its physical tools and sensors.

This integration between hardware and digital analytics is becoming an increasingly important part of IMDEX's business model.

ALT and Mount Sopris strengthen instrumentation

The Acquisition of Advanced Logic Technology and Mount Sopris Instruments expanded IMDEX's downhole instrumentation portfolio.

These businesses provide technologies used to collect geological and physical information from drill holes.

The additions increase the range of products IMDEX can provide across exploration and mining programs.

They also create opportunities to distribute the acquired technologies through IMDEX's existing global network.

The commercial benefit will depend on customer adoption and the extent to which the new products can be incorporated into integrated solutions.

The acquisitions therefore support both product breadth and the wider strategy of increasing revenue generated from each customer site.

Krux adds drill-site data capability

The acquisition of Krux Analytics added further capability in drill-site data and operational information.

This complements IMDEX's existing technologies by helping customers manage and interpret drilling activity more effectively.

Mining and exploration companies increasingly seek digital systems that connect information collected in the field with broader geological and operational decision-making.

Krux gives IMDEX another platform through which to participate in that transition.

As with the other FY26 acquisitions, the contribution will depend partly on integration and cross-selling through IMDEX's existing customer relationships.

Balance sheet supports the acquisition program

IMDEX ended FY26 with net Debt of approximately A$199 million.

Leverage was around 1.3 times normalised EBITDA.

The increase in debt reflects the acquisition activity undertaken during the year.

IMDEX has indicated that Leverage remains within its target range, but debt levels will remain important while the company integrates the acquired businesses.

Cash generation from the enlarged group can be used to reduce leverage while continuing to fund research, technology development and operational expansion.

The pace of debt reduction will depend on earnings, working capital, acquisition integration costs and any further Investment decisions.

Integration costs continue into FY27

IMDEX incurred integration costs during the second half of FY26 as acquired businesses were brought into the group.

Further integration expenditure is expected during FY27.

These costs can temporarily reduce statutory earnings even if the acquisitions contribute positively to revenue and normalised EBITDA.

The longer-term objective is to create benefits from shared technology, global distribution and combined customer relationships.

Delivering those benefits will require more than simply owning the acquired businesses.

IMDEX must integrate systems, products and teams while maintaining Customer Service and continuing its own Research and Development program.

The effectiveness of that process will be one of the important operating measures during FY27.

Dividend increases following FY26 result

IMDEX declared a fully franked final Dividend of 1.75 cents per share.

This brought total FY26 dividends to 3.4 cents per share.

The higher distribution followed the record revenue and normalised EBITDA result.

Dividend decisions remain dependent on earnings, cash flow, debt levels and investment requirements.

Because IMDEX continues to invest in acquisitions and technology development, capital allocation needs to balance Shareholder distributions with funding for growth.

FY27 outlook remains tied to exploration activity

IMDEX did not provide detailed numerical FY27 earnings guidance with the full-year result.

The company nevertheless reported continued customer activity entering the new financial year.

Management has indicated that customer intentions to spend on exploration remain supportive, although actual expenditure can be affected by permitting delays, geopolitical conditions and supply-chain constraints.

Exploration activity is cyclical.

Mining companies generally increase spending when Commodity prices and funding conditions support new projects and reduce activity when market conditions weaken.

IMDEX's strategy of increasing Market Share and technology penetration can reduce its reliance on pure market growth, but it cannot completely remove exposure to the exploration cycle.

What could shape FY27 performance?

The first issue will be whether IMDEX can continue increasing its share of customer exploration spending.

Digital Earth Knowledge and integrated solutions provide opportunities to increase revenue without depending entirely on higher drilling volumes.

Acquisition integration will be another major Factor after five businesses were added during FY26.

The company will need to demonstrate that the enlarged product portfolio can create cross-selling and operating benefits without allowing integration costs to overwhelm margin improvement.

Exploration spending remains an external variable, particularly across gold, copper and other metals that account for substantial drilling activity.

Currency movements can also influence reported results because IMDEX generates a significant proportion of revenue outside Australia.

FY26 demonstrated that IMDEX can grow faster than the broader exploration market by combining technology adoption, market-share gains and acquisitions. FY27 will test whether that growth can continue while the company integrates its expanded technology platform and manages a higher debt position.