Johnson Matthey (JMAT) H2 2025 earnings summary

Executive summary

• Announced sale of Catalyst Technologies to Honeywell for GBP 1.8 billion (£1.8bn), with GBP 1.4 billion (£1.4bn) to be returned to shareholders.

• Transformation program delivered GBP 200 million in cost savings and enhanced operational efficiency.

• Focused future strategy on Clean Air and PGMs, with growth optionality in hydrogen and new applications.

Financial highlights

• Underlying operating profit up 5% year-over-year to GBP 389 million, despite a 2% sales decline to GBP 3,470 million.

• Free cash flow positive at GBP 521 million, with GBP 36 million excluding divestments.

• Net debt reduced to GBP 799 million, leverage at 1.4x after returning nearly GBP 400 million to shareholders.

• Completed GBP 250 million share buyback and maintained dividend at GBP 0.77 (77.0p) per share.

Outlook and guidance

• Targeting mid-single-digit CAGR in pro forma operating profit and sustainable free cash flow of at least GBP 250 million by 2027/2028.

• Annual shareholder returns of at least GBP 200 million from 2026/2027, with performance weighted towards 2H.

• Clean Air margins expected to reach 16-18% by 2027/2028, with sales over GBP 2 billion, 90% already secured.

• Hydrogen Technologies expected to reach breakeven by end of 2025/26 and positive cash flow in 2026/27.