IMB Presents $63M Pipeline Growth With 16% Video Guarding Customer Expansion
Intelligent Monitoring Group delivers strong Q3 FY26 momentum
In its April 2026 investor presentation, Intelligent Monitoring Group outlined robust operational momentum across its security and fire services platform. The update detailed a secured pipeline of $63.2 million in Q3 FY26, representing 27% quarter-on-quarter growth from $49.8 million in Q2 FY26. Operating cashflow rose 14.5% to $7.7 million compared to the prior corresponding period, while the company’s Video Guarding customer base expanded 16% quarter-on-quarter.
Management confirmed FY26 underlying EBITDA guidance of $43 million to $47 million remains on track. The presentation highlighted the strategic expansion into fire services in New Zealand through the Tyco NZ (Wormald) acquisition, which is expected to deliver proforma EBITDA of $53 million to $57 million when annualised. The company framed the quarter as evidence of its multi-year transformation strategy delivering tangible commercial results.
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What is Intelligent Monitoring Group?
Intelligent Monitoring Group operates a monitoring platform providing technology-driven solutions across the security and fire (or “life safety”) industries in Australia and New Zealand. The company’s brand structure positions it as a market leader across multiple customer channels:
- ADT: Direct security services in Australia and New Zealand
- Signature Security Group: Partnered security brand in Australia
- Tyco NZ (trading as Wormald): Fire services in New Zealand
- Intelligent Monitoring Solutions (IMS): Wholesale monitoring services
The corporate evolution began in 2021 when Threat Protect rebranded to Intelligent Monitoring Group and invested in a new operating platform. Between 2023 and 2025, the company acquired ADT Australia & New Zealand, then executed a series of bolt-on acquisitions (ACG, DVL, AAG, Kobe, BNP, Red Wolf) to expand technical coverage and service depth. The 2026 Tyco NZ acquisition marked entry into the fire services sector. Management’s stated strategic direction centres on driving AI video-based security services into higher-value commercial applications.
The combination of a monitoring platform with technical services creates recurring revenue streams and cross-selling opportunities across the installed customer base. This positions the company to leverage its operational infrastructure across both security and fire verticals, targeting a $9 billion total security market in Australasia.
Pipeline and Video Guarding growth accelerates
The secured pipeline has grown from $0 at the August 2023 ADT takeover to $36.6 million in Q1 FY26, before accelerating 36% to $49.8 million in Q2 FY26 and reaching $63.2 million in Q3 FY26. This pipeline progression demonstrates commercial traction from the combined ADT platform and technical services model.
| Sector | Pipeline Share |
|---|---|
| Airport/Transport | 25% |
| Construction/Manufacturing | 15% |
| Data Centre | 10% |
| Education/Health | 5% |
The Video Guarding service line, which uses AI-driven monitoring to provide remote security intervention, reported strong operational metrics. Customer numbers grew 16% quarter-on-quarter, with the service contributing to over 50 confirmed arrests and averaging more than 15 deterrence events monthly. These metrics indicate the AI-driven security services thesis is gaining commercial traction, particularly in sectors requiring real-time monitoring and response capabilities.
The pipeline growth from zero to $63.2 million in under three years demonstrates the scalability of the monitoring platform when combined with direct technical services capability. This positions the company to convert pipeline opportunities into long-term recurring revenue contracts.
Recurring revenue model underpins long-term value
The company’s customer revenue lifecycle follows a predictable pattern that transitions from one-off installation revenue to highly recurring monitoring income:
- New installation: 10% of FY25 revenue
- New work from existing customers: 12%
- Upgrades: 15%
- Services & maintenance: 18%
- Monitoring: 45%
Customer lifetimes vary by segment, with residential and small-to-medium business customers averaging 7 years, while commercial and enterprise clients typically maintain relationships for 15 years. This extended customer lifecycle, combined with monitoring revenue representing 45% of total revenue, creates a predictable annuity-style income stream that supports higher valuation multiples compared to project-based security businesses.
The recurring revenue structure means each new customer installation creates long-term revenue visibility through ongoing monitoring contracts, regular service maintenance, and system upgrade opportunities over the customer lifetime.
FY26 guidance confirmed with Tyco NZ upside
Management confirmed underlying EBITDA guidance of $43 million to $47 million remains achievable based on current trading performance. When including the Tyco NZ acquisition on a proforma basis, EBITDA guidance rises to $53 million to $57 million, with proforma NPAT (adjusted) of $26 million to $29 million and EPS of 6.2 to 7.0 cents. The reported FY26 result will depend on the settlement timing of the Tyco NZ transaction, but the presentation indicated underlying business performance is tracking to guidance.
| Metric | 1H23 (Annualised) | FY24 | FY25 | Proforma |
|---|---|---|---|---|
| EBITDA | $5.3m | $34.8m | $38.6m | $53.0m |
| Net Debt | $28.9m | $54.5m | $60.9m | $81.8m |
| ND:EBITDA | 5.5x | 1.6x | 1.6x | 1.5x |
| EV:EBITDA | 8.6x | 5.6x | 7.5x | 5.5x |
The financial summary demonstrates the transformation in the company’s earnings profile since 1H23, with EBITDA increasing from $5.3 million annualised to an expected proforma $53 million. Net debt-to-EBITDA gearing has improved from 5.5x in 1H23 to 1.5x on a proforma basis, positioning the balance sheet at the low end of industry norms following refinancing to NAB senior debt in FY25.
Management highlighted that proforma EPS exceeding 6.25 cents implies a PE ratio below 8x at the current share price, which the company positioned as representing perceived undervaluation relative to the earnings trajectory.
Cashflow and balance sheet strength
Q3 FY26 operating cashflow reached $7.7 million, representing 14.5% growth compared to $6.7 million in Q3 FY25. Capital expenditure declined 19.7% to $1.8 million, with Q3 marking the final quarter of 3G network upgrade capex in New Zealand ($0.8 million). The completion of this upgrade programme removes a non-recurring capex item from future quarters.
The company completed refinancing to NAB senior debt during FY25, with net debt-to-EBITDA gearing of 1.5x on a proforma basis sitting comfortably within industry benchmarks. The combination of declining capital expenditure (as the 3G upgrade completes) and rising operating cashflow indicates improving free cash flow generation capacity in future periods.
This cashflow performance supports the company’s stated strategy of funding organic growth while selectively pursuing bolt-on acquisitions that expand technical capability or geographic coverage.
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Outlook and strategic direction
The presentation outlined management’s growth strategy centred on leveraging monitoring platforms and technical reach to drive expansion in new service categories. The company operates within an approximately $2.3 billion electronic security market, which forms part of a broader $9 billion total security market across Australasia. Management identified AI perimeter security penetration as a key growth vector, targeting the approximately 12.9 million households and 1.2 million businesses in the region.
Organic growth of 8.3% in 1H FY26 (compared to 8.2% in FY25) is being supplemented by strategic acquisitions that consolidate a fragmented industry. The Tyco NZ acquisition represents expansion into adjacent fire services, creating cross-selling opportunities across the existing customer base and monitoring infrastructure.
The combination of organic growth, bolt-on acquisitions in core security services, and strategic expansion into fire services positions the company to increase market share across Australasia while expanding service revenue per customer through platform leverage and technical depth.
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