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Intertek: Strong Financial Performance with Room for Growth

The company delivered a robust financial performance in 2025, with revenue growth of 4.3% at constant currency and 1.1% at actual rates, resulting in total revenue of GBP 3.4 billion. Operating margin expanded by 90 basis points to 18.1%, and operating profit grew by 9.3% at constant rates to GBP 620 million. Earnings per share (EPS) increased by 10.1% at constant rates to 253.5p. The company's return on invested capital (ROIC) was excellent at 21.3%, and organic ROIC increased by 70 basis points.

ITRK.L

GBp 3982

2.58%

A-Score: 5.5/10

Publication date: March 3, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • 2025 EPS Growth Acceleration 10.1% EPS growth (2x faster than 4.3% revenue growth) with 90 bps margin expansion.
  • Strong Cash Flow and Shareholder Returns GBP 2.3B cumulative operating cash flow and GBP 602M returned to shareholders in 2025.
  • 2026 Guidance Mid-single-digit revenue growth, GBP 150–160M CapEx, and 65% dividend payout ratio targeting GBP 71–72M net finance costs.
  • Segment Performance Consumer Products (6.2% growth) and Industry Infrastructure (5.3% growth) leading revenue gains in 2025.
  • ROIC and Margin Progression 21.3% ROIC and 240 bps margin expansion since 2022, driven by cost control and high-margin segments.

Segmental Performance

The company's Consumer Products division delivered a stellar performance, with revenue growth of 6.2% to GBP 983 million. Corporate Assurance business grew revenue by 6.8% to GBP 514 million, while Health and Safety revenue increased by 5.5% to GBP 347 million. Industry Infrastructure revenue grew by 5.3% to GBP 858 million. These strong performances across various segments contributed to the company's overall revenue growth.

Outlook and Guidance

The company expects mid-single-digit like-for-like revenue growth in 2026, with further margin progression and strong earnings growth. The guidance suggests that the company is confident about its ability to deliver quality revenue growth, driven by its focus on high-growth and high-margin segments. As André Lacroix stated, "We're targeting quality revenue growth, focusing on selling our ATIC solutions in high-growth and high-margin segments."

Valuation Metrics

Analyzing the company's valuation metrics, we observe a P/E Ratio of 17.78, indicating that the stock may be fairly valued. The EV/EBITDA ratio of 9.58 suggests that the company's enterprise value is reasonable relative to its earnings before interest, taxes, depreciation, and amortization. Additionally, the Dividend Yield of 4.01% and Free Cash Flow Yield of 6.99% indicate that the company is returning value to shareholders. The ROIC of 15.96% and ROE of 28.61% demonstrate the company's ability to generate returns on its investments.

Capital Allocation and Future Plans

The company prioritizes investments in high-growth, high-margin sectors and aims to make acquisitions that make sense. The goal is to augment the company's intellectual property and drive growth. With a net debt-to-EBITDA ratio of 1.44, the company is in a good position to pursue opportunities. The expected CapEx investment of GBP 150-160 million will be focused on expanding capacity, investing in technology, and maintaining sites.

Intertek's A-Score