IMAX Corp. (NYSE:IMAX) is riding a wave of box office strength and global expansion, with third-quarter receipts running ahead of forecasts and profitability climbing as higher-margin local-language hits and blockbuster IMAX-filmed releases fuel momentum.
Wedbush analysts, led by Alicia Reese, reiterated an Outperform rating and raised the 12-month price forecast to $39 from $35, citing higher filmed-for-IMAX output, local-language box office strength, and an expanding global footprint.
The new forecast values the company at 12 times 2027 EBITDA, up from 11 times, reflecting improving profitability. Third-quarter box office receipts are tracking at $324 million quarter-to-date, topping Wedbush's $299 million estimate.
Also Read: Imax Analysts Increase Their Forecasts After Q2 Results
Third-quarter revenue is expected at $100-102 million, ahead of consensus $99 million, with adjusted EBITDA likely to surpass $40 million versus Wedbush's prior $37 million model. Earnings per share are forecast at 31 cents to 34 cents against the consensus estimate of 32 cents.
Wedbush highlighted IMAX's rising profitability, with EBITDA margins already at 42.6% in the first half of 2025, more than 500 basis points higher year-on-year. Management recently lifted its full-year outlook to the low-40s.
Installations remain a growth driver. IMAX added 17 net new screens in third quarter and raised its 2025 guidance to 150–160, up from 145–160. Recent additions are concentrated in high-performing markets, such as Japan, South Korea, France, the Middle East, and North America, where per-screen averages exceed 20% above global norms. IMAX estimates it is only 36% penetrated globally, leaving significant expansion potential.
The brokerage noted that more than 14 blockbuster titles filmed with IMAX cameras are slated for release in 2025, compared with the historic norm of one to three. A broader and higher-quality 2026 pipeline is expected to reinforce market share gains.
Local-language productions, particularly in China and other international markets, are contributing more to box office outperformance than underperforming Hollywood releases, Wedbush added.
In July, IMAX posted second-quarter earnings of 26 cents per share, topping Wall Street's consensus of 21 cents by 24%. That compares with 18 cents a year earlier, a 44% increase. Revenue came in at $91.7 million, slightly below the $92.5 million estimate, though up 3% from $89.0 million a year ago.
Price Action: IMAX shares were trading higher by 2.44% to $32.74 at last check Monday.
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