Johnson Matthey (JMAT) H2 2026 earnings summary

Executive summary

• Achieved 6% underlying growth and 14% reported growth, with Clean Air margin improving to 14.5% and Hydrogen Technologies reaching run-rate breakeven in Q4.

• Free cash flow increased over 160% year-on-year to GBP 168 million.

• Major restructuring and portfolio reshaping, including the sale of Catalyst Technologies and acquisition of Cormetech.

• Leaner operating model with reduced leadership and headcount, and improved engagement scores.

• Announced acquisition of Cormetech, a U.S. leader in stationary emission control, to strengthen Clean Air Solutions.

Financial highlights

• Underlying operating profit up 14% to GBP 340 million; underlying EPS up 16% to 128.5p.

• Free cash flow increased to GBP 168 million from GBP 64 million; net debt at GBP 880 million (1.8x EBITDA).

• Ordinary dividend maintained at 77.0p per share.

• Sales down 7% to GBP 2,555 million (excluding precious metals), reflecting portfolio changes.

• Reported impairment and restructuring charges of GBP 192 million, mainly from Hydrogen Technologies and PGMS.

Outlook and guidance

• Low to mid-single digit operating profit growth expected for 2026/2027, excluding Catalyst Technologies and Cormetech.

• Clean Air to deliver further margin improvement; Hydrogen Technologies to remain at breakeven.

• CapEx to decrease to GBP 120 million by 2027/2028 after refinery completion.

• Free cash flow target of at least GBP 250 million by 2027/2028.

• Annual shareholder returns of at least GBP 200 million from 2026/2027 onward, with GBP 1 billion to be returned post-Catalyst Technologies sale.