Davy Morning Equity Briefing
May 12, 2026
IMI plc
Trading update
IMI’s trading update, ahead of its AGM later today, has reconfirmed full year EPS guidance of 136-142p. We will be leaving our forecasts unchanged. The company had a positive Q1, with 5% organic revenue growth, and remains well positioned with a strong balance sheet.
Dole plc
Q1 results – healthy start, guidance reiterated
Dole delivered a solid start to the year, with Q1-26 revenue ahead of consensus and adjusted EBITDA broadly in line, despite a tougher Fresh Fruit cost backdrop. While flagging increased operational complexity and cost disruptions as a result of the Middle East conflict, management has reiterated its FY26 adjusted EBITDA guidance of “at least $400m” (VA: $410m, Davy: $422m). At this stage, we envisage limited changes to our current forecasts.
Greggs plc
Trading update – solid outcome; guidance reiterated
Year-to-date trading for Greggs has been solid and ahead of expectations, with like-for-like (LFL) growth of 2.5% (VA: c.2%) accelerating to c.3.3% over the last ten weeks. Commentary on cost control was reassuring, with forward buying of raw materials and energy hedging supporting retention of its c.3% FY26 LFL inflation guidance. Accordingly, management has reiterated its full year guidance. We believe today’s update provides a clear rebuttal to structural concerns that have become baked into the equity valuation.
Wizz Air Holdings
Signals a more positive F26 result but is using promotional fares for the summer
Wizz Air expects to report a breakeven to slightly positive net profit result for the full year ended March 31st 2026 (it reports on June 11th). We assume FX plays a part in this. Wizz Air had announced in early March that it expected FY26 net income to be c.€50m lower than guidance (previous guidance: “expected to be in the range of +€25m to -€25m”) as a result of disruption in the Middle East. Wizz’s comment about “strategically utilized promotional fares to stimulate demand” during H1 F27 would imply losses into FY27. We currently have a loss of €97m with net debt/EBITDA of 3.6x.
On the Beach Group plc
Guidance reinstated at materially lower levels
On The Beach has reported its H1 FY26 results this morning with headline adjusted EBITDA of £6.4m (£12.8m H1 25) impacted by the Middle East war. Guidance had been suspended in March as a result of the war outbreak but has been reinstated today, with the Board confident in delivering adjusted profit before tax (PBT) in the range of £18-25m (previously £39-43m), a c.48% cut to guidance taking the midpoints. On current trading, the company has called out a late booking profile and subdued demand with booking activity stabilising since the half-year. Bookings over the last six weeks since H1 26 are +9%, and H2 26 forward orders are currently flat year-on-year (yoy). We expect consensus to move towards the midpoint of the guided range.
