IMAX stock near record high as summer box office momentum builds

IMAX Corp. shares climbed on Tuesday and hit its 52 week high as strong summer box-office performance and growing investor confidence in the company's business model continued to support the stock.

Shares rose 5.2% to $44.55 in afternoon trading, putting the stock on course to surpass its previous record closing high of $43.22, set on June 19, 2015.

The gains extend a strong run for the company, with IMAX shares up 20% year to date and 52% over the past 12 months.

The latest move higher came as movie theaters continue to benefit from a stronger film slate and rising ticket sales during the summer season.

Strong box-office trends support shares

Investor optimism received an additional boost after BFI IMAX, the largest cinema screen in the United Kingdom, reported selling 28,000 tickets within 24 hours for Christopher Nolan's upcoming film The Odyssey.

According to Deadline, the advance ticket sales generated approximately £750,000, or more than $1 million.

The film, starring Matt Damon, is scheduled for release in the United States on July 17 and is notable for being the first movie filmed entirely in 70mm using IMAX Film cameras.

The broader movie industry has also shown encouraging momentum.

Domestic box-office revenue reached $4.17 billion through Sunday, according to Rentrak, representing an increase of about 13% compared with the same period last year.

Since May 1, the summer box office has been running approximately 11% ahead of last year's pace.

Several major releases have contributed to the improvement. Universal Pictures' Disclosure Day, directed by Steven Spielberg, generated $44 million in domestic ticket sales during its opening weekend and approximately $92.9 million globally.

IMAX screens accounted for $13.8 million of that total.

Meanwhile, Lionsgate's Michael, based on the life of Michael Jackson, added another $4.3 million during the latest weekend.

The film has generated $362.8 million domestically and $932.2 million worldwide, including $65.2 million from IMAX screenings.

Industry outlook remains positive

Paul Dergarabedian, Rentrak's head of marketplace trends, expects the current year to be the strongest for domestic box-office sales since 2019.

He told Barron's that "the summer of '26 is running just 3.5% behind the Avengers: Endgame-powered summer of '19."

Dergarabedian also highlighted Walt Disney and Pixar's upcoming Toy Story 5 as a potentially important catalyst for the industry.

The film is expected to debut this weekend and could generate more than $150 million at the domestic box office.

The movie is also scheduled to play on more than 1,600 IMAX screens globally, including locations in China, providing another potential driver of IMAX ticket sales.

Financial performance strengthens investment case

Beyond the strong box-office environment, investors have increasingly focused on IMAX's financial performance.

Over the past five years, the company has grown revenue at a compound annual growth rate of 23.5%, outperforming many businesses in the broader services sector.

The company has also improved its cash-generation capabilities.

IMAX expanded its free-cash-flow margin by 23.5 percentage points over the last five years, reaching 22.2% on a trailing 12-month basis.

IMAX stock had caught investor attention in May when reports said the company was exploring a potential sale.

As summer movie attendance continues to strengthen and major film releases remain on the calendar, investors appear increasingly confident that IMAX is well-positioned to benefit from a sustained recovery in theatrical entertainment.