IMDEX Achieves Record Revenue as Technology Growth Accelerates

About IMDEX Ltd

IMDEX Ltd (ASX: IMD) is a global mining technology company focused on helping customers find, define and optimise the subsurface more efficiently and sustainably. The company develops cloud-connected sensors, drilling optimisation technologies, integrated field services and digital analytics across the mining value chain, combining its AMC and REFLEX brands to help customers drill faster, gather better subsurface data and make decisions in real time.

Record quarter reflects broad-based growth

The latest quarterly result reinforces that strategic direction. Growth was not only strong, but also broad. Revenue rose 23 per cent compared with the prior corresponding period, while constant-currency growth reached 29 per cent. Organic growth was also strong, indicating the core business itself is expanding meaningfully rather than relying only on recent acquisitions to lift reported numbers.

A key feature of the quarter was the continued shift in revenue mix. Sensors, services and SaaS revenue increased 28 per cent and now represents 70 per cent of group revenue. That mix matters because it highlights the increasing contribution of higher-value, technology-led offerings rather than lower-growth product sales alone. Sensor rental revenue rose 27 per cent, Integrated Field Services revenue also increased 27 per cent, and IMDEX Mining Technologies grew 26 per cent. Digital revenue was particularly strong, up 114 per cent year on year, reflecting both underlying demand and the benefit of recent acquisitions. By comparison, sale of goods rose 7 per cent, underlining how the business is becoming more weighted toward recurring and embedded technology solutions.

Regional diversification is delivering

Regional diversification continues to be a major strength. The Americas remained the largest contributor, accounting for 51 per cent of group revenue and generating $63 million in the quarter, up 27 per cent on the prior year. Growth in the region was led by strong activity in the United States, expanded activity across Canada and deeper penetration of integrated field solutions. South American demand also remains strong, with copper and gold continuing to underpin drilling activity.

APAC delivered equally strong momentum, with revenue of $31 million, up 28 per cent year on year, representing 25 per cent of group revenue. Western Australia remains a key source of strength, particularly in gold-related activity, while demand for next-generation tools and integrated field solutions is also supporting growth. At the same time, improving sentiment across Asia is beginning to translate into higher exploration activity, giving the region a broader base for future expansion.

EMEA contributed $29 million in revenue, up 10 per cent year on year and accounting for 24 per cent of group revenue. While quarter-on-quarter revenue eased because of project timing in Europe, the region still delivered positive annual growth and continues to benefit from uptake of newer products. IMDEX also noted there was no operational disruption from the Middle East conflict during the quarter, which is an important consideration given how many global industrial and resources-linked businesses are now flagging geopolitical risk more explicitly.

Technology adoption is deepening

The operational indicators behind the result also look encouraging. Tools on hire were up 33 per cent on the prior corresponding period, while next-generation tools on hire increased to 12 per cent of fleet from 8 per cent a year earlier. Integrated Field Services revenue was up 28 per cent year to date, IMDEX Mining Technologies rose 40 per cent year to date, and digital revenue increased 66 per cent year to date including acquisition revenue. These trends suggest customers are not only increasing activity but are also adopting a greater proportion of newer, higher-value IMDEX solutions.

That matters strategically because IMDEX is trying to sit deeper inside customer workflows. The company increasingly positions itself as more than a supplier of physical tools. Its model starts with capturing data at the source through sensors and drilling solutions, then turning that data into usable insight, and increasingly applying AI and analytics to help customers make faster and more confident decisions about the orebody. That physical-to-digital integration is a meaningful differentiator. It supports stronger customer retention, broader share of wallet and potentially more resilient margins over time.

Industry conditions are becoming more supportive

The wider market backdrop also appears to be improving. IMDEX is pointing to stronger commodity prices, improving drilling activity across all regions, rising exploration budgets and much stronger capital raising activity among junior and intermediate miners. In particular, recent capital raisings in the last six months increased to $14.9 billion from $5.9 billion in the prior corresponding period. The company also expects exploration budgets in calendar 2026 to trend 15 to 20 per cent above calendar 2025 levels, although it notes that higher non-drilling costs mean execution and share-of-wallet gains will remain critical.

Government policy is also becoming a stronger tailwind. IMDEX notes that more than 35 countries have now established over 450 critical minerals policies, with support for strategic metals, permitting reform, sovereign supply chains and mining-related investment becoming increasingly visible across North America, Europe, the Middle East and South America. This matters because policy support can help convert improving commodity sentiment into actual exploration and development activity.

Acquisitions and capital discipline remain important

Recent acquisitions remain part of the growth story as well. Datarock, ALT, Mount Sopris Instruments and Krux are all being integrated into the broader platform, helping expand IMDEX’s digital and technical capabilities. Management continues to present these acquisitions as part of a larger strategy to build a more integrated physical-digital mining technology system rather than simply adding short-term revenue.

From a capital allocation perspective, IMDEX continues to signal discipline. Guidance on key items below EBITDA has been maintained apart from finance costs, which are now expected to be slightly higher. Capital expenditure guidance remains at $65 million to $70 million, R&D remains unchanged at 8 to 10 per cent of revenue, and management continues to emphasise strong balance sheet flexibility, through-the-cycle investment in innovation and a sustainable dividend policy.

Outlook

IMDEX looks to be entering a stronger phase. Revenue is at a record level, growth is coming from multiple regions and multiple solution areas, and the company is becoming more exposed to technology-rich revenue streams that should support longer-term earnings quality. The main challenge from here is execution. Industry conditions appear supportive, customer demand is lifting and exploration budgets are improving, which means the opportunity is clear. If IMDEX continues to execute well across product penetration, integration and digital expansion, it appears well placed to benefit from a more active exploration cycle.