Intertek Group PLC (LON:ITRK) has announced its half year results announcement.
Strong H1 25 performance with double-digit EPS1 growth and on track to deliver medium term targets
• Revenue of £1,673m, +4.5% at constant currency, and +0.2% at actual rates
• Robust LFL revenue growth of 4.5%1: Consumer Products 7.9%, Corporate Assurance 8.2%, Health and Safety 3.2%, Industry and Infrastructure 3.0%, and stable LFL in the World of Energy.
• Recent acquisitions in attractive growth and margin segments performing well
• Adjusted operating profit of £276.3m, +9.7% at constant currency and +4.2% at actual rates
• Strong adjusted margin progression of 80bps1 driven by mix, pricing, operating leverage, cost control, productivity gains and margin accretive investments
• Strong EPS growth: +12.6% in adjusted EPS at constant currency and +6.3% at actual rates
• Excellent cash conversion of 118% delivers a strong adjusted operating cash flow of £266m
• Increased investments in growth: capex up 11% Year-on-Year and acquisition of TESIS in Brazil
• Continued investments in developing industry-leading ATIC innovations: SupplyTek and AI2 in H1 25
• £350m share buyback programme started in March with £187m already repurchased (4 million shares)
• Excellent progress on ROIC to 22.5% up +170bps at constant currency reflecting the compounding effect of our continuous strong earnings performance and our accretive disciplined capital allocation policy
• Interim dividend of 57.3p, +6.3% year on year in line with dividend policy of c.65% payout ratio
• Strong FY 2025 expected with mid-single digit LFL revenue growth at constant currency, margin progression, well supported by superior growth in Consumer Products and Corporate Assurance, our two most profitable divisions, and strong free cash flow
• On track to deliver our medium term targets of mid-single digit LFL revenue growth, 18.5%+ margin and strong cash
Note 1: at constant currency
André Lacroix: Chief Executive Officer statement
“I would like to recognise all my colleagues for having delivered a strong performance in the first half of the year in customer service, revenue growth management, margin accretion, earnings growth, cash generation and ROIC progression. Once again, this demonstrates the company’s ability to improve its performance on a sustainable basis and consistently, across all our key financial metrics with H1 25 being the ninth consecutive six-month period of mid-single digit LFL revenue growth and the fifth consecutive six-month period of double-digit EPS growth at constant currency.
Revenue grew by 4.5% driven by a robust LFL revenue growth and the contribution of acquisitions. We have seen strong margin progression of 80bps driven by our portfolio mix, pricing, operating leverage, our disciplined cost approach, productivity improvements and margin accretive investments. Our cash performance was excellent with a cash conversion of 118% delivering an adjusted operating cash flow of £266m, operating with a strong balance sheet at a gearing level of 1.0x net debt to EBITDA. We continue to invest in growth to seize the exciting organic and inorganic opportunities we see in high growth and high margin segments. We are pleased with the performance of our acquisitions and the integration of TESIS is progressing well. Our ROIC increased by 170bps to 22.5% demonstrating the strong returns of our high quality earnings model.
Our role in society is mission-critical, providing a unique suite of industry-leading ATIC solutions to over 400,000 clients across every industry and region in each of our five divisions, and all our global business lines enjoy scale leadership positions at both the local and global level. At this time of global trade and increased supply chain complexity, our clients around the world are in need of consulting, training and systemic ATIC solutions on global market access, enabling them to bring their products to market at speed but without compromising on the right quality assurance, safety and sustainability standards.
Our clients are increasing their focus on Risk-based Quality Assurance to operate with higher standards on quality, safety and sustainability in each part of their value chain, triggering higher demand for our ATIC solutions. We believe the current environment creates additional growth opportunities for Intertek with new global trade routes to assure, more products to test and certify, and more factories to audit and inspect. Following a strong H1, we enter H2 with confidence and now expect to deliver a strong performance in 2025 with mid-single digit LFL revenue growth at constant currency, margin progression and a strong free cash flow.
Intertek Group’s AAA Differentiated Growth Strategy is built on our best-in-class operating platform, targeting areas for continuous improvement and long-term value creation for all stakeholders. With global momentum toward building an ever-better world, corporations are investing more in quality, safety, and sustainability accelerating demand for our industry-leading ATIC solutions. Everyone at Intertek is focused on executing our AAA strategy and consistently delivering on our corporate targets: mid-single digit LFL revenue growth, margin progression targeting 18.5%+ over time, strong cash generation, and disciplined investments in both organic and inorganic growth to deliver a superior ROIC. Our passionate, innovative, and customer-centric teams are energised to take Intertek to greater heights, delivering AAA performance for all stakeholders.”
| Key Adjusted Financials | 2025 H1 | 2024 H1 | Change at actual rates | Change at constant rates1 | ||
| Revenue |  | £1,672.7m | £1,669.5m | 0.2% | 4.5% | |
| Like-for-like revenue2 | | £1,670.0m | £1,668.2m | 0.1% | 4.5% | |
| Operating profit3 | | £276.3m | £265.1m | 4.2% | 9.7% | |
| Operating margin3 | | 16.5% | 15.9% | 60bps | 80bps | |
| Profit before tax3 | | £256.0m | £242.6m | 5.5% | 11.8% | |
| Diluted earnings per share3 | | 111.5p | 104.9p | 6.3% | 12.6% | |
| Interim dividend per share | | 57.3p | 53.9p | 6.3% | ||
| Cash generated from operations3 | | £265.8m | £267.4m | (0.6)% | ||
| Free cash flow3 |  | £56.0m | £90.6m | (38.2)% | ||
| Financial net debt4 | | £800.6m | £708.2m | 13.0% | ||
| Financial net debt / EBITDA3, 4 | | 1.0x | 1.0x | |||
| ROIC (rolling 12 months) | 22.5% | 20.4% | 210bps | 170bps | ||
| Key Statutory Financials | 2025 H1 | 2024 H1 | Change atactual rates | 1 Constant rates are calculated by translating H1 24 results at H1 25 exchange rates. 2 LFL revenue includes acquisitions following their 12-month anniversary of ownership and excludes the historical contribution of any business disposals/closures. 3 Adjusted results are stated before Separately Disclosed Items (‘SDIs’), see note 3 to the Condensed Consolidated Financial Statements. 1,2,3 Reconciliations for these measures are shown in the Presentation of Results section on page 22. 4 Financial net debt excludes the IFRS 16 lease liability of £280.6m. Total net debt is £1,081.2m. Reflects prior 12 months’ EBITDA for relevant period. See note 7 to the Condensed Consolidated Financial Statements. | |
| Revenue | | £1,672.7m | £1,669.5m | 0.2% | |
| Operating profit | | £246.8m | £232.4m | 6.2% | |
| Operating margin | | 14.8% | 13.9% | 90bps | |
| Profit before tax | | £226.5m | £206.2m | 9.8% | |
| Profit after tax | | £168.4m | £153.3m | 9.8% | |
| Diluted earnings per share | | 98.0p | 87.2p | 12.4% | |
| Cash generated from operations | £257.5m | £260.3m | (1.1%) | ||
The Directors have approved an interim dividend of 57.3p per share (H1 24: 53.9p) to be paid on 7 October 2025 to shareholders on the register at close of business on 12 September 2025.
Analysts’ Call
A call for analysts and investors will be held today at 9.30am UK time. Details can be found at http://www.intertek.com/investors/
