Intertek Group PLC (LSE:ITRK), the product testing and certification company, saw its shares fall more than 8% to 4,266p in early trading on Tuesday despite reporting a third consecutive year of double-digit earnings growth and upgrading its outlook for one of its key divisions.
Adjusted operating profit rose 5% to £620 million on revenues of £3.43 billion, up 1.1% at actual exchange rates and 4.3% on a constant currency basis.
Adjusted earnings per share grew 10.1% at constant currency, while the company reported cash conversion of 110%, generating adjusted operating cash flow of £762 million.
Intertek completed four acquisitions during the year for a combined £156 million and said its most recent three years of deals were delivering an operating margin of 34%.
The company upgraded its growth outlook for its Consumer Products division, which tests goods including electronics, textiles and toys, to mid-single digit like-for-like revenue growth, having previously guided for low-to-mid single digit expansion.
For the full year 2026, Intertek said it expected mid-single digit like-for-like revenue growth across the group, continuous margin progression and strong earnings and free cash flow growth.
The company also reiterated its medium-term targets of mid-single digit annual like-for-like revenue growth and an operating margin of 18.5% or above, compared with 18.1% in 2025.
Chief executive André Lacroix said the company was entering 2026 with confidence and pointed to growing demand from its 400,000 clients for quality assurance, safety and sustainability testing across their supply chains as a structural driver of future growth.
The full-year dividend rose 5.4% to 165.0p per share, in line with the company's policy of paying out around 65% of adjusted earnings.
Intertek also completed a £350 million share buyback programme during the year, bringing total shareholder returns for 2025 to £602 million.