This article first appeared on GuruFocus .
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Revenue:$247 million, up 16% on 1H '25.
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Normalized EBITDA:Increased 22% to $78 million, with margins expanding to 32%.
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Net Profit After Tax (NPAT):Normalized NPAT up 16% on 1H '25.
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Cash Flow:Record normalized operating cash flow of $67 million.
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Cash Conversion:Strong at 86%.
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Net Debt:Increased to $27 million.
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Leverage Ratio:0.2 times.
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Dividend:Interim fully franked dividend of $0.0169 per share.
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Integrated Field Services Revenue:Increased by 28% on pcp.
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HUBIQ Connected Revenue:Grew by 22%.
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Mining Technologies Revenue:Up 47%.
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Datarock Business Growth:Grew 90% on pcp.
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Regional Revenue Growth:Americas up 20%, APAC up 9%, EMEA up 17%.
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Operating Cash Flow:$65 million.
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Cash Balance:$49 million.
Release Date: February 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Imdex Ltd ( IMDXF ) reported a record first-half financial performance with a 16% increase in revenue to $247 million, marking the strongest first half in the company's history.
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Normalized EBITDA increased by 22% to $78 million, with margins expanding to 32%, demonstrating strong operating leverage.
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The company's Integrated Field Services revenue increased by 28%, and its HUBIQ connected revenue grew by 22%, highlighting the successful adoption of its integrated solutions.
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Imdex Ltd ( IMDXF ) declared a record interim fully franked dividend of $0.0169 per share, reflecting a 30% payout of normalized NPAT.
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The company maintained strong cash discipline with a normalized cash conversion rate of 86%, supporting its growth initiatives and acquisitions.
Negative Points
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Net debt increased to $27 million following the acquisition of Earth Science Analytics, impacting the company's leverage ratio.
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The company faces ongoing industry challenges, including geopolitical uncertainty and rising costs, which could affect future performance.
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Exploration activity in Canada remains 20% below its prior peak, indicating potential headwinds in this region.
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The strengthening Australian dollar poses a headwind for revenue, with a 1% movement in the AUD/USD exchange rate impacting revenue by approximately $1.5 million.
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The company anticipates margin pressure due to the nature of recent acquisitions, which may affect overall profitability.
Q & A Highlights
Q: Sensors and software revenue was up 15% in the first quarter and 20% for the half. Is 25% a good estimate for the second half? Also, how should we view fluids growth going forward? A: (Paul House, CEO) Now that we have lapped the comps with significant contracts ending, the drilling optimization outlook looks solid. Beyond fluids, drilling optimization includes the DCD side, which is growing strongly. Sensors revenue growth is driven by activity and next-generation technologies, so it may not be linear. We expect strong growth, likely between 15% and 25%.
Q: How are you managing headcount given the revenue growth, and what is the outlook for the second half? A: (Paul House, CEO) We have been trimming and reorganizing the business, which reflects in our headcount discipline. We will add heads from recent acquisitions and in customer-facing roles as needed. The core business should leverage well, and we will provide more guidance on FTEs from acquisitions later.
Q: How is IMDEX preparing for the potential increase in junior market activity over the next 6 to 12 months? A: (Paul House, CEO) We've seen initial uptake in established projects with clear targets and permitting. Junior capital raisings have been strong, but there's a typical six to nine-month lag before it impacts drilling. We expect this to play out later this year, though geopolitical uncertainties could delay capital deployment.
Q: Can you provide insight into the EBITDA margin outlook, given the expected industry activity uptick? A: (Linda Lim, CFO) FY26 is a transitional year with a 30% EBITDA margin guide. We achieved operational leverage in the first half and will continue disciplined cost management. Growth in Integrated Field Services and acquisitions may pressure margins, but we remain focused on scaling efficiently.
Q: How are competitive dynamics evolving as exploration levels rise, and how does this affect IMDEX? A: (Paul House, CEO) The competitive landscape hasn't shifted significantly, and we continue to gain market share. As cost pressures increase, the demand for productivity-enhancing technologies will grow, benefiting both IMDEX and competitors. We expect competitive intensity to remain stable.
Q: How does the strengthening AUD impact earnings for the remainder of FY26? A: (Linda Lim, CFO) The strengthening AUD presents headwinds, with 50% of our revenue being USD-linked. Our FX management remains in place, and we estimate a $1.5 million impact for each 1% movement in the AUD/USD rate.
Q: Can you discuss the growth opportunities outside of established projects? A: (Paul House, CEO) We have a global footprint to meet demand anywhere. Increasing rig activity on established projects is faster due to existing permits. The headroom lies in how quickly juniors deploy capital from recent record raisings.
Q: How are Krux and Datarock performing, and what are their growth trajectories? A: (Paul House, CEO) Krux and Datarock are different digital businesses with varying growth patterns. Krux focuses on infield operations, while Datarock builds platforms. Datarock is expected to compound at a higher rate, while Krux will benefit from integration into Drill Site Technologies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
