Local-Language Hits Are Driving IMAX Profits: Analysts

Core Insights - IMAX Corp. is experiencing strong box office performance and global expansion, with third-quarter receipts exceeding forecasts and profitability improving due to higher-margin local-language films and blockbuster IMAX releases [1][2] Financial Performance - Third-quarter box office receipts are tracking at $324 million, surpassing Wedbush's estimate of $299 million [2] - Expected revenue for the third quarter is between $100 million and $102 million, ahead of the consensus estimate of $99 million, with adjusted EBITDA likely exceeding $40 million compared to the previous model of $37 million [3] - Earnings per share are forecasted to be between 31 cents and 34 cents, against a consensus estimate of 32 cents [3] Profitability Metrics - IMAX's EBITDA margins reached 42.6% in the first half of 2025, an increase of over 500 basis points year-on-year, with management raising its full-year outlook to the low-40s [4] Growth Drivers - IMAX added 17 net new screens in the third quarter and raised its 2025 guidance to 150–160 screens, up from 145–160 [5] - Recent installations are focused in high-performing markets such as Japan, South Korea, France, the Middle East, and North America, where per-screen averages exceed global norms by over 20% [5] - IMAX estimates only 36% global market penetration, indicating significant expansion potential [5] Future Outlook - More than 14 blockbuster titles filmed with IMAX cameras are scheduled for release in 2025, compared to the historical average of one to three [6] - A stronger and higher-quality pipeline for 2026 is anticipated to further enhance market share [6] - Local-language productions, especially in China and other international markets, are contributing more to box office success than underperforming Hollywood releases [6]