IMDEX Outlines 31% Revenue Surge Racing Well Ahead of 7% Drilling Growth
Key Takeaways
- IMDEX posted record 1Q27 revenue of $161m, up 31% on the pcp, with organic growth of 21% and $12m from acquisitions.
- Revenue growth ran well ahead of the roughly 7% rise in exploration drilling, which management reads as evidence of ongoing market share gains.
- Platform revenue hit $82m, up 44%, and now makes up 51% of group revenue, up from 33% five years ago.
- FY26 normalised EBITDA rose 29% to $163m on revenue of $520m, but net debt climbed to $199m from $13m after five acquisitions.
- The Investor Strategy Day on 26 October 2026 is the next catalyst, with FY27 priorities in R&D, transformation and integration all reported on track.
Record 1Q27 revenue of $161m headlines IMDEX’s 2026 AGM
In its 2026 AGM presentation on 16 October 2026, IMDEX Limited (ASX: IMD) outlined 1Q27 record revenue of $161m, up 31% on the prior corresponding period (pcp) and 7% on 4Q26. The quarter covers July to September 2026.
Management said organic revenue growth was 21% on the pcp, with an inorganic revenue contribution of $12m. The presentation was delivered by Chairman Anthony Wooles and Managing Director and CEO Paul House.
The contrast with the market is the key point. Revenue growth of 31% compared with an approximately 7% increase in exploration drilling activity, based on S&P Global Market Intelligence drill hole data. Management said this tells it customers are increasingly adopting its technologies, software and solutions, and that it continues to gain market share. For you as an investor, growth well ahead of drilling activity suggests the company is winning more business, not just riding a busier market.
Paul House, Managing Director and CEO
“IMDEX continues to grow faster than the markets we serve because we are delivering more value to our customers.”
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FY26 record results laid the foundation
Chairman Anthony Wooles told shareholders that FY26 was a record year and that the result “has strengthened the foundations for future growth.”
Financial highlights
Revenue rose 21% to $520m (23% on a constant currency basis). Normalised EBITDA (earnings before interest, tax, depreciation and amortisation, excluding individually significant items) rose 29%, ahead of revenue growth.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Group revenue | $520m | $431m | Up 21% |
| EBITDA normalised | $163m | $126m | Up 29% |
| EBITDA normalised margin | 31% | 29% | Up 2% |
| NPAT normalised | $59m | $43m | Up 37% |
| EPS normalised | 11.5c | 8.4c | Up 37% |
Earnings growing faster than revenue is what management calls operating leverage. In plain terms, each extra dollar of sales is adding more to profit than it costs to earn.
Cash, debt and dividend
- Normalised cash conversion was 83% (FY25: 95%).
- Net debt was $199m (FY25: $13m), a $186m increase after drawing down to fund acquisitions.
- The leverage ratio was 1.3x (FY25: 0.1x), which management said preserves capacity for continued investment.
- The full-year dividend was 3.4cps, fully franked, including a 1.75cps final dividend. This represents a 30% payout of normalised NPAT.
The higher debt reflects acquisition funding rather than operating strain, though it is a step up from a year earlier.
Platform revenue passes half of group revenue
What “platform revenue” means
IMDEX defines platform revenue as connectable sensors, software and platform advisory across its two divisions, DST and DEK. The remainder, equipment, sales and services, covers fluids, instruments and services with limited or no digital enablement.
Why does it matter? Management says growth in platform-enabled revenue is increasing the quality of earnings. Software and connected tools tend to deepen customer relationships, and management links this to more recurring revenue.
Platform and segment momentum
In 1Q27, platform revenue was $82m, up 44% pcp, representing 51% of group revenue (FY26: 47%; 33% five years ago). The Chief Executive said that for the first time platform adoption represents more than half of group revenue. Equipment, sales and services revenue was $79m, up 20% pcp.
Over five years, IMDEX revenue has grown at a compound annual growth rate of 15%, against estimated exploration budget growth of 6%. Share of wallet, IMDEX exploration revenue as a proportion of estimated global exploration spend, reached $2.50 per $100, up from $2.40 at 30 June 2026.
Segment revenue in 1Q27 versus 1Q26:
- Americas: $77m (from $62m)
- APAC: $36m (from $28m)
- EMEA: $41m (from $30m)
- DEK: $7m (from $3m), up 133% including contributions from newly acquired businesses
Growth levers in 1Q27 were broad-based:
- Platform enabled hardware rose 37% pcp.
- Software and platform advisory revenue rose 167% pcp, benefiting from acquisition revenue.
- Product sales rose 25% pcp, primarily due to drilling fluids.
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Strategy, industry tailwinds and FY27 priorities
Supportive industry macros
Management pointed to several external drivers:
- Global exploration budgets in 2026 increased by double digits versus 2025.
- Junior and intermediate financing reached US$27bn over the last 12 months, versus US$15bn in the same period a year earlier.
- Gold prices remain strong, and copper is at historical levels.
- Governments globally continue to prioritise critical mineral supply chains.
Four growth levers and FY27 execution
IMDEX’s long-term strategy rests on four levers: Share of Wallet, Market Share, Market Expansion and Structural Market Shift. Management said the pathways reinforce one another.
For FY27, the company called out three investment priorities, and Mr House said all three are on track:
- R&D: year-to-date spend is 9% of revenue, with FY27 spend forecast at 10%.
- Transformation: targeting an EBITDA margin uplift from FY28 onwards.
- Integration: system, people and cyber integration is complete for three of the five acquisitions, and FY27 integration spend is trending lower.
The five FY26 acquisitions were Earth Science Analytics, Datarock, ALT, Mount Sopris Instruments and Krux.
Paul House, Managing Director and CEO
“We have a clear strategy, a broader platform, strong momentum and a capable global team focused on delivering sustainable value for customers and shareholders alike.”
On governance, all resolutions were put to a poll. Valid proxies received numbered 102, representing 87% of issued capital. Poll results were to be released to the ASX after the meeting.
The next date on the corporate calendar is the Investor Strategy Day on 26 October 2026.
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