London, June 22, 2026, 16:07 BST
- IMI slipped 1.38% to 2,996 pence after hitting a one-year high of 3,044.04 pence on Friday. The FTSE 100 rose 0.56%.
- The engineer picked up another 54,318 shares for cancellation at a 3,030.97 pence average. Issued capital is now 250.56 million shares.
- Issued capital is down 3.5% since February 27. Using simple arithmetic over the period, that drop on its own could push earnings per share up around 3.6%.
IMI plc (LSE:IMI) slipped roughly 1.4% late Monday in London, easing back from Friday’s top even as the broader market moved higher. The stock pulled back with no new operating warning, and some traders pointed to profit-taking after the recent rally.
IMI reported its latest buyback on Friday, picking up 54,318 shares at an average price of £30.31 each. That’s near the day’s top trade at £30.42. The group cancels the bought shares, which shrinks its total share count.
IMI’s share count keeps dropping as buybacks add up. The company had 259.66 million issued shares on February 27, but after the most recent cancellation will be down to 250.56 million. That’s a hit of 9.10 million shares, or 3.5%. A full-period change like that, with profit flat, would lift EPS by about 3.6%. The final boost in 2026 will vary, though, since IMI buys shares at different times and the EPS figure is based on a weighted-average count.
That number is much higher than IMI’s stated outlook. The company’s guidance range for adjusted EPS is 136-142 pence, landing at a midpoint of 139 pence. That’s up about 5.1% from the 132.3 pence posted for 2025. The buyback doesn’t add extra upside to this number; it clarifies how much per-share growth might rely on capital moves, not just underlying profit.
IMI has signed off on buybacks of up to £500 million. J.P. Morgan is handling the first £250 million, with Deutsche Numis lined up to run the second half once the first tranche wraps up. Based on Monday’s price, that full amount would be about 16.7 million shares, or 6.4% of IMI’s issued capital in February. That number is for comparison—actual shares bought could differ.
Valuation sets a higher hurdle. IMI changes hands at around 2,996 pence, putting the shares on 21.1 to 22.0 times projected 2026 earnings. Buybacks at these levels retire fewer shares for each pound spent compared with the earlier, cheaper rounds. That puts more weight on continued operating performance as the buyback programme continues.
IMI stuck with its full-year outlook after first-quarter organic revenue went up 5%. The company said the operating backdrop is still solid. CEO Roy Twite said the first quarter was a “good start” and pointed to IMI’s “strong balance sheet and significant cash generation” as backing returns to shareholders and ongoing investment. IMI plc
A quieter driver touches two units. Process Automation, which is 44% of 2025 sales, said its pipeline is getting a lift from higher data-centre power and more electrification. Climate Control, making up 18%, pointed to gains in direct liquid cooling. Together they make up 62% of total group sales—not the same as 62% data-centre exposure—but the cycle in data-centre infrastructure can show up in both power and server cooling for IMI.
Peers split on the day. Smiths Group edged up 0.2%. Spirax Group, which focuses on thermal and fluid tech, slipped 1.3%. The moves point against a full-blown industrial sell-off, but IMI was not the only name lower.
Still, investors are eyeing some trouble spots. Process Automation orders slipped 2% in the first quarter. Orders for replacement parts and service also edged down 1% against last year’s tough comparison. The Middle East pulled in 6% of 2025 revenue, with IMI counting on finishing planned shipments to the region by the end of the year. Any hiccups could put pressure on a valuation already sitting above 21 times expected earnings.
Investors will be watching IMI Plc’s half-year numbers on July 31. The focus is on order conversion, Middle East shipments, and how quickly the company moves through its second buyback round. Those updates will say if the share rally has been more about stronger industrial demand, falling share count, or both.
