IMAX: Poised for Growth in 2025 with Strong Content Pipeline and Global Expansion

The movie industry is on the rebound, and IMAX (IMAX) is well-positioned to capitalize on the growth in 2025. With a strong slate of upcoming films and a robust global expansion strategy, IMAX is expected to gain significant market share and drive revenue growth next year. Wedbush Securities vice president of equity research, Alicia Reese, joins Julie Hyman to discuss the outlook for IMAX and the movie industry in 2025.



IMAX's content pipeline is strong, with a diverse range of titles set to hit screens in 2025. Sequels, Marvel titles, and family-friendly fare are all on the docket, ensuring there's something for everyone. Reese highlights IMAX as a top pick in the space, noting that people are eager to see titles on IMAX screens and experience content shot with IMAX cameras. The final "Mission Impossible" movie and the new "Avatar" movie are expected to drive consumers to the theater, further boosting IMAX's market share.

IMAX's global footprint expansion and diversification into alternative content are also expected to contribute to its market share gains. The company has been installing new and upgraded systems around the world, with a 63% increase in installations during the third quarter of 2024 compared to the same period last year. Additionally, IMAX has been striking agreements in key growth markets, such as Australia, France, Japan, and Saudi Arabia. This expansion, coupled with the company's focus on local-language content, is expected to drive incremental market share gains and high-single-digit revenue growth in 2025.

Wedbush analysts expect 25% box office growth for IMAX next year, translating to high-single-digit revenue growth and EBITDA margins of 40% or more, in line with IMAX's guidance. The company's strong content pipeline, accelerating system installations, and robust sales activity worldwide position it well for growth in 2025 and beyond.



In conclusion, IMAX is well-positioned for growth in 2025, with a strong content pipeline, global expansion strategy, and a focus on alternative content and local-language films. The company's immersive experience and diverse slate of upcoming titles are expected to drive market share gains and revenue growth, making IMAX an attractive investment opportunity for the coming year.