Johnson Matthey (JMAT) H1 2025 earnings summary

Executive summary

• Delivered resilient first-half performance amid challenging macroeconomic conditions, maintaining full-year outlook and progressing strategic milestones.

• Transformation initiatives delivered significant cost savings and operational improvements, with £155m cumulative savings to date and a target of £200m by year-end.

• Completed all planned non-core divestments, including Medical Device Components, with proceeds supporting capital allocation and a £250m share buyback.

• Strong balance sheet maintained, with net debt to EBITDA at 1.4x and robust free cash flow.

• Significant progress in strategic milestones, including large-scale project wins in Catalyst Technologies and PGM refinery investment on track.

Financial highlights

• Sales on a continuing basis decreased 3% year-over-year to £1.7bn; underlying operating profit down 13% to £156m.

• Free cash flow was £347m, mainly from disposals; net debt reduced to £783m (1.4x EBITDA).

• Interim dividend maintained at 22.0p per share; £250m share buyback ongoing, with £205m completed by November 2024.

• Reported operating profit of £575m included £484m profit on disposal of Medical Device Components and £63m in impairment/restructuring charges.

• Underlying EPS at 57.4p; profit after tax £484m, basic EPS 266.8p.

Outlook and guidance

• Full-year guidance maintained: at least mid-single-digit growth in underlying operating performance at constant currency and metal prices.

• Clean Air expects modest growth and continued margin expansion; sequential improvement in H2.

• Catalyst Technologies to see further strong growth and mid-teens margin; PGM Services to remain broadly stable with a stronger H2.

• Hydrogen Technologies to deliver lower sales but significantly reduced operating loss, targeting breakeven by 2025/26.

• Adverse impacts expected from PGM prices (£3m) and FX (~£10m) if current trends persist.