Intertek Group Stock Earnings Reports

Intertek reported a strong FY2025 with 4.3% like‑for‑like revenue growth (1.1% at actual rates) and notable operating leverage: operating margin rose to 18.1% (+90 bps year‑on‑year at constant currency) while EPS grew faster than revenue (10.1% at constant rates). Cash conversion was excellent at 110%, enabling GBP 300m of growth investment and GBP 602m returned to shareholders. The company highlighted continued margin progression over the last three years, cumulative operating cash flow of GBP 2.3bn, and an average dividend increase of ~17% per year over the same period. For 2026 Intertek guides to mid‑single‑digit like‑for‑like revenue growth, further margin progression (targeting upside to its 18.5%+ margin objective), strong earnings growth and strong cash generation. Key operational points: Consumer Products and Corporate Assurance were standout areas (Consumer Products upgraded to mid‑single‑digit medium‑term growth), Industry & Infrastructure and Minerals remain strong, while World of Energy faced a difficult baseline and some temporary demand weakness in Transportation Technology with recovery expected in H2 2026. Management reiterated a disciplined capital allocation framework: CapEx guidance GBP 150–160m for 2026, net debt guidance GBP 930–980m (before material FX/M&A), leverage target 1.3–1.8x, and a c.65% dividend payout policy. M&A remains a priority for deploying capital into high‑growth, high‑margin bolt‑ons (recent buys: Aerial PV and QTEST); management sees an active pipeline and will remain selective. Management also emphasized investments in productivity and digitization (including AI initiatives and new SaaS/analytics offerings) and said the restructuring program is in its final year with expected GBP 8m of benefit in 2026 from 2025 actions.