This article first appeared on GuruFocus .
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Revenue (ForEx Adjusted):Increased 11%, driven by 3% organic growth and 7% from acquisitions.
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Gross Profit (ForEx Adjusted):Increased 7%, a combination of 5% from acquisitions and 2% organic growth.
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Gross Profit Margin:24.9%, down 0.7 percentage points year-over-year, primarily due to lower-margin acquisitions.
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Operating EBITA (ForEx Adjusted):Increased 8%, with modest organic growth and a 7% contribution from acquisitions.
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Operating EBITA Margin:10.8%, slightly lower than the prior year.
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Conversion Margin:43.3%, slightly lower than the same period last year.
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Free Cash Flow:EUR222 million, an increase of EUR49 million year-over-year.
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Cash Conversion Margin:76.2%.
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Net Result:Increased 10% year-over-year.
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Working Capital:70 days of revenue, compared to 69 days at the end of June 2025.
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Leverage Ratio:2.8 times EBITDA, well below the maximum set in loan documentation.
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Employees:Approximately 5,200 full-time employees, with a net reduction of about 200 employees from back-office rationalization.
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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IMCD NV ( IMCDY ) reported a strong first half of 2026 with gross profit up 7% and EBITA up 8% on a constant currency basis, driven by organic growth and acquisitions.
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The company achieved a robust cash conversion margin of 76.2% and increased free cash flow to EUR222 million, reflecting disciplined working capital management.
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EMEA region performed exceptionally well, with organic EBITA growth of 7% in the first half and a strong 20% in Q2, supported by supplier wins and stable demand.
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IMCD NV ( IMCDY ) successfully completed three strategic acquisitions in South Korea, UK/Ireland, and Thailand, strengthening its positions in beauty, nutrition, and plastics.
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The company maintained strict cost control, with no organic increase in costs year-over-year, while investing in sales teams and digital tools to enhance commercial activity.
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A promising start to Q3 2026 was noted, with stable demand trends and no significant pre-buying, indicating sustained momentum.
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IMCD NV ( IMCDY ) saw positive developments in innovation and lab activity, with strong project pipelines converting into gross profit growth.
Negative Points
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Gross profit margin decreased by 0.7 percentage points to 24.9%, primarily due to lower-margin acquisitions and product mix changes.
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Americas segment reported negative organic growth in the first half, with a weak coatings and construction market and delayed pricing tailwinds impacting performance.
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Currency headwinds negatively impacted EBITA by EUR12 million (minus 4%) in the first half, affecting translation of local currencies into euros.
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The M&A pipeline remains active but discussions are taking longer due to dynamic market conditions, with only EUR50 million spent on acquisitions in H1, the lowest since 2020.
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Working capital days increased to 70 from 69 year-over-year, driven by higher debtor days due to strong Q2 sales, though inventory levels remain elevated to meet demand.
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Pricing tailwinds were concentrated in the semi-specialty portfolio, with larger specialty components seeing only low single-digit increases, limiting overall margin expansion.
Q & A Highlights
Here are the key highlights from the IMCD NV ( IMCDY ) 2026 half-year results earnings call, focusing on the most significant Q&A exchanges.
Q: Can you provide color on pricing versus volume trends in Q2? Was most of the growth pricing-led, and can you quantify the pre-buying you saw at the beginning of the quarter? A: (Marcus Jordan, CEO) The organic growth in Q2 was driven by a combination of factors. There were tailwinds from pricing, but this was concentrated on the smaller semi-specialty part of the portfolio, which saw larger percentage increases. The larger specialty component saw much lower, single-digit percentage increases. On the volume side, we gained some market share in semi-specialties due to less availability from Asia Pacific. Critically, our teams are executing well with high commercial activity, and we saw the benefit of some nice supplier wins. The pre-buying at the start of Q2 was relatively limited, as customers learned from post-COVID overstocking.
Q: The strength in EMEA was exceptionally strong compared to other regions. Is this an underlying strength or more one-off in nature? A: (Marcus Jordan, CEO) EMEA is the more stable market we see. The supplier win component likely had the greatest impact there compared to other regions. Additionally, EMEA saw more tailwind from pricing than North America, which was more insulated from the price increases.
Q: This quarter was the first time in four quarters we saw positive operating leverage (EBITA growth exceeding gross profit growth). Has the business now reached a scale where prior cost investments are fully leveraged? A: (Hans Kooijmans, CFO) Our cost structure is flat year-to-date. We strengthened the sales organization while making the back-office more efficient through digital tools, resulting in a net reduction of about 200 employees. We have a structure that can cope with more sales than today. We hope to report a slight cost increase at year-end due to higher bonuses from a successful year.
Q: On the Americas, after a substantial decline in Q1, you reported 2% organic growth in Q2. Has the business stabilized? A: (Marcus Jordan, CEO) Q1 had a very tough comp (21% organic growth in Q1 2025). The US saw a delayed and muted pricing impact and less pre-buying. The US also has a larger industrial component, particularly in coatings and construction, which remains weak. While Q2 was better, we are not at the level we want to be. We have strengthened the management team in the region to capture the available opportunities.
Q: You mentioned seeing less availability from Asia Pacific and market share gains on the semi-specialty side. Are you seeing supply issues elsewhere, and how is this developing in Q3? A: (Marcus Jordan, CEO) In general, we haven't suffered tremendously from availability issues, but we have seen pockets. The impact was not material in Q2. Coming into Q3, the situation is stable, with no difference from what we saw in Q2.
Q: You spent only EUR50 million on M&A, the lowest level since 2020. How do you see the market for M&A? A: (Marcus Jordan, CEO) I am pleased with the three acquisitions we made, though they are small. We remain laser-focused on strategic fit and accelerating organic growth. We have a healthy pipeline, but discussions are taking longer in these dynamic market conditions. We are not being impatient and are ensuring we pay the right price.
Q: Can you talk more about the supplier wins on the industrial side? Is this opportunistic or a reflection of longer-term efforts? A: (Marcus Jordan, CEO) The wins are not focused on one market. Over the past 12+ months, we have strengthened our commercial excellence and team. Our reputation for delivering on promises goes a long way. Suppliers are having a tough time and are more critically evaluating their fixed-cost sales organizations versus outsourcing. We have been having more positive discussions, and it is a credit to the team that we have converted some of these.
Q: Do you see any indications that customers are becoming more cautious on volumes due to global cost inflation? A: (Marcus Jordan, CEO) We have been very careful when passing on price increases, working with suppliers to avoid destroying long-term demand. We look at the long-term future and relationships, minimizing the price increases we pass through as much as possible.
Q: Could you talk about the pipeline and level of innovation activity? Is it translating to organic growth? A: (Marcus Jordan, CEO) Our labs are very busy. We see good traction in the number of projects coming through and their conversion rate. Our formulatory expertise is a key pillar of our value proposition, where customers come to us for guidance, not just ingredients. This remains an extremely important contributor to future gross profit growth.
Q: Your cash taxes in H1 were quite low. Is there a structural change or just phasing? A: (Hans Kooijmans, CFO) It is purely a timing situation. The tax burden in the P&L was higher than last year, in line with increased results. The lower cash outflow is due to the timing of payments to local tax authorities, which is not in our control.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
