Intertek Group plc (ITRK) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, and thanks for joining us on our call today. Carl, Denny, and I are delighted to be with you and discuss our H125 results. Intertech. has demonstrated once again its high performance through the passion, innovation, and the drive of its people. And I wouldn't want to start our call today without recognizing all of my colleagues for having delivered a strong set of results in customer service, revenue growth, margin accretion, earning growth, cash generation, and ROIC progression. Here are the key takeaways of our call today. 8-1-25 marks the ninth consecutive six-month period of mid-single-digit lack-for-lack revenue growth and the fifth consecutive six-month period of double-digit EPS growth at constant currency. Our profit conversion was strong with operating margin up here near about 80 bps. Our cash conversion was 118% and we've delivered a strong operating cash flow. Our RIC was excellent at 22.5%, up year-on-year by 170 bps. We are increasing our interim dividend in line with our EPS growth at actual rates. Moving forward, the value growth opportunity is significant. We expect a strong financial performance in 2025, and we remain confident in our medium-term targets of mid-single-digit like-for-like revenue growth, margin of 18.5% plus, and strong cash generation. will continue to operate with our creative discipline capital allocation policy, investing in organic growth, rewarding our shareholders with our progressive dividend policy, pursuing high-quality M&A opportunities, and returning surplus cash to shareholders. So let's start our presentation today with our performance highlights. We have delivered, indeed, a strong financial performance in the first half of 2025. Our lack-for-lack revenue growth was 4.5% at constant rate, Operating profit...