Results in line with expectations, more focused JM accelerating value creation
- Agreed sale of Catalyst Technologies to Honeywell International Inc. (Honeywell) at an attractive valuation – enterprise value of £1.8 billion on a cash and debt-free basis, 13.3x 2024/25 EBITDA¹
- £1.4 billion of net sale proceeds to be returned to shareholders following completion²
- Creating a highly focused, lean and agile group
- Driving a step change in sustainable cash generation through rigorous cost control, materially lower capex and significant working capital benefits
- Committed to growing annual cash returns to shareholders from at least £130 million for 2025/26, equivalent to the total dividend for 2024/25³, to at least £200 million for 2026/27 and beyond⁴
- 2024/25 results in line with guidance against a challenging market backdrop – underlying operating profit ex-divestments of £388 million, up 6%, at constant PGM prices and currency
- Reported operating profit of £538 million benefiting from a £482 million profit on disposal of businesses. This was partly offset by £329 million impairment and restructuring charges primarily across Clean Air, PGM Services and Hydrogen Technologies
Liam Condon, Chief Executive Officer, commented:
Today’s announcement represents a significant milestone in the over 200 year history of Johnson Matthey. Following on from the divestment of our Medical Devices business at a highly attractive valuation, we have now agreed to the sale of our Catalyst Technologies business for £1.8 billion. This allows JM to realise a very attractive valuation for this business that fully reflects its strong long-term growth prospects. We will now fundamentally re-shape Johnson Matthey into a more highly focused and leaner business. This will better position us to leverage our strong capabilities and leading market positions in Clean Air and PGM Services as we drive a step change in sustainable cash generation with higher returns to shareholders. Our full year results were underpinned by a strong second half and were in line with guidance and market expectations, against challenging market headwinds. This resilient performance reflects the strength of our businesses and the strategic progress delivered, including cumulative benefits of £200 million from our 2021/22 to 2024/25 group transformation programme.
Group outlook for the year ending 31st March 2026
For 2025/26 we expect mid single digit percentage growth in group underlying operating profit at constant precious metal prices and constant currency, supported by self-help measures.⁹ This assumes a full year of contribution from Catalyst Technologies. Whilst we expect good growth in the first half, overall performance will continue to be weighted towards the second half.
In Clean Air we expect modest growth in operating profit, with a margin of 14-15%. This is based on external data which suggest a 4% decline in global light duty vehicle production for 2025/26, before any potential impact on customer demand due to tariffs. Despite a challenging market, operating profit growth and margin expansion will be driven by our ongoing operational excellence and transformation benefits. In PGM Services, we expect lower operating profit largely reflecting reduced metal recoveries. In Hydrogen Technologies, we continue to expect to achieve operating profit breakeven by the end of 2025/26. Assuming a full year of contribution from Catalyst Technologies, we expect this business to deliver good operating profit growth in 2025/26.¹⁰
If PGM (platinum group metal) prices remain at their current level¹¹ for the remainder of 2025/26, we expect a limited effect on full year operating profit compared with the prior year.¹²
At current foreign exchange rates¹³, translational foreign exchange movements for the year ending 31st March 2026 are expected to adversely impact underlying operating profit by c.£5 million.
We are mindful of the current uncertain macroeconomic environment including the potential impact of the evolving tariff situation and its impact on our customers. We remain well positioned given our global manufacturing footprint enabling local supply and, strong long-standing and flexible customer and supplier relationships. We are undertaking a range of mitigating actions, including rebalancing production to leverage our global footprint, adjusting supply chains, customer negotiations and engagement with the relevant governments. On the basis of the current tariff proposals¹⁴, post our mitigating actions, we do not expect the direct impact of tariffs to be material. The indirect impact of the changing trade landscape on customer demand in our key markets remains uncertain at this time.
Dividend
The board will propose a final ordinary dividend for the year of 55.0 pence per share at the Annual General Meeting (AGM) on 17th July 2025. Together with the interim dividend of 22.0 pence per share, this gives a total ordinary dividend of 77.0 pence per share, maintained at the same level as the prior year. Subject to approval by shareholders, the final dividend will be paid on 5th August 2025, with an ex-dividend date of 5th June 2025.
Board changes
As previously announced, Jane Griffiths stepped down as Chair of the Societal Value Committee and from the board on 31st December 2024. Rita Forst succeeded Jane as Chair of the Societal Value Committee from 1st January 2025. Sinead Lynch was appointed independent Non-Executive Director and joined the board on 1st January 2025.
On 10th February 2025 we announced that, following nearly seven years as Chair of Johnson Matthey, Patrick Thomas informed the board that he does not intend to seek re-election at the AGM on 17th July 2025. Patrick will step down from the board and his position as Chair immediately following the AGM. We expect Patrick’s successor to be announced by the AGM.
Richard Pike was appointed Chief Financial Officer and joined the board on 1st April 2025.
Investment Committee
On 27th January 2025, JM announced the establishment of an Investment Committee of the board, which will reinforce the company’s investment strategies and capital allocation. Specific responsibilities of the Committee will include review and endorsement of i) investment and capital allocation strategy, ii) major capital projects and iii) M&A activity. Chaired by Barbara Jeremiah, Senior Independent Director, the Committee will provide additional oversight to these areas in line with our commitment to delivering sustainable shareholder value.
Enquiries:
Investor Relations
Martin Dunwoodie: Director of Investor Relations and Treasury, +44 20 7269 8241
Louise Curran: Head of Investor Relations, +44 20 7269 8235
Media:
Sinead Keller: Group External Relations Director, +44 20 7269 8218
Harry Cameron: Teneo, +44 7799 152148
Notes:
1. Transaction multiple of 13.3x EBITDA is based on an agreed adjusted 2024/25 EBITDA of £136 million for the standalone Catalyst Technologies business. The underlying EBITDA of the Catalyst Technologies business in 2024/25, as reported, is £119 million (comprising £92 million of underlying operating profit, plus underlying depreciation and amortisation of £27 million.)
2. Further update to be provided on mechanism and timing of expected £1.4 billion shareholder return, prior to completion.
3. 2024/25 total ordinary dividend of 77.0 pence per share.
4. Our current intention is for these cash returns to be delivered through ordinary dividends for 2025/26, and be broadly
equally weighted between dividends and share buybacks for 2026/27 and beyond.
5. Unless otherwise stated, sales and operating profit commentary refers to performance at constant exchange rates. Growth at constant rates excludes the translation impact of foreign exchange movements, with 2024/25 results converted at 2023/24 average rates. In 2024/25, the translational impact of exchange rates on group sales and underlying operating profit was an adverse impact of £58 million and £11 million respectively.
6.Underlying is before profit or loss on disposal of businesses, amortisation of acquired intangibles, share of profits or losses from non-strategic equity investments, major impairment and restructuring charges and, where relevant, related tax effects. For definitions and reconciliations of other non-GAAP measures, see pages 48 to 52.
7. Divestment of Value Businesses which is now complete.
8. Revenue excluding sales of precious metals to customers and the precious metal content of products sold to customers.
9. Baseline is underlying operating profit excluding Value Businesses (£388 million in 2024/25 as shown on page 11).
10.Outlook commentary for Clean Air, PGM Services, Catalyst Technologies and Hydrogen Technologies refers to underlying operating performance and assumes constant precious metal prices and constant currency.
11. Based on average precious metal prices in May 2025 (month to date).
12. A US$100 per troy ounce change in the average annual platinum, palladium and rhodium metal prices each have an impact of approximately £1 million, £1 million and £0.5 million respectively on full year 2025/26 underlying operating profit in PGM Services. This assumes no foreign exchange movement.
13. Based on average foreign exchange rates for May 2025 month to date (£:US$ 1.33, £:€ 1.19, £:RMB 9.59,
£:INR 114).
14. As at 16th May 2025.
Strategy update
Johnson Matthey is built on strong and long-standing foundations including world-class technologies, cutting edge R&D and exceptionally talented people. These capabilities have delivered leading market positions, strong competitive advantages and a clear ability to win across our businesses.
We have made good progress against the strategy we outlined in May 2022. We have focused our portfolio on our core strengths; secured significant commercial wins and growth opportunities; divested non-core businesses; delivered on our £200 million transformation programme; and improved our operating model to drive greater efficiency. Our strategy has been implemented against a backdrop of challenging and dynamic end markets, including lower levels of automotive production and a slowdown in the energy transition, with a direct impact on the pace of development of the green hydrogen market.
As we have executed against our strategy, we have continued to adapt with a clear focus on optimising value for shareholders. Today, we announced a significant milestone in the history of JM – the sale of Catalyst Technologies to Honeywell in a deal agreed post year-end. This is a
near-term opportunity for shareholders to realise value that fully reflects the strong long-term growth prospects of Catalyst Technologies. At the same time, this allows us to de-risk our exposure to market factors beyond our control and recalibrate our strategy to become a more highly focused, lean and agile business.
Sale of Catalyst Technologies at an attractive valuation
Catalyst Technologies is a global leader in licensing process technology and supplying catalysts. It has leading positions in syngas – methanol, ammonia, hydrogen and formaldehyde – and a strong sustainable technologies portfolio. Catalyst Technologies is targeting high growth, high return opportunities in the decarbonisation of fuels and chemical value chains.
We have delivered significant commercial wins and partnerships, and developed a pipeline of more than 150 sustainable technologies projects that is expected to deliver long-term profitable growth as the world transitions to net zero.
The sale to Honeywell for an enterprise value of £1.8 billion on a cash and debt-free basis, implying a multiple of 13.3x 2024/25 EV/EBITDA¹, fully reflects the highly attractive long-term growth prospects of Catalyst Technologies, including the delivery of its substantial sustainable technologies project pipeline.
After deducting one-off payments and associated costs of c.£0.2 billion, this implies total net proceeds of c.£1.6 billion (subject to customary closing adjustments). We intend to return £1.4 billion of these proceeds to shareholders following completion. The remaining c.£0.2 billion of total net proceeds will be retained for general corporate purposes. We expect to provide a further update on the mechanism and timing of shareholder return prior to completion. Completion is expected by the first half of calendar year 2026.
Notes:
1. Transaction multiple of 13.3x EBITDA is based on an agreed adjusted 2024/25 EBITDA of £136 million for the standalone Catalyst Technologies business. The underlying EBITDA of the Catalyst Technologies business in 2024/25, as reported, is £119 million (comprising £92 million of underlying operating profit, plus underlying depreciation and amortisation of £27 million.)
JM will be a more highly focused, lean and agile business
Following the agreed sale of Catalyst Technologies, JM will be a more highly focused, lean and agile business, centred around Clean Air and PGM Services. These businesses have leading market positions, underpinned by our strong heritage and expertise in PGMs (platinum group metals), combined with a fully circular business model based on our world-class refining capabilities and our ability to manage PGMs for our customers.
We have a clear strategy to drive sustainable value creation from these core businesses. As we re-shape JM and create a leaner organisation, we are committed to driving a step change in cash generation. Our renewed focus on cost leadership and cash generation will support materially enhanced shareholder returns. We will maintain a disciplined capital allocation framework targeting 1.0 to 1.5x net debt to EBITDA¹ over the medium-term.
Notes:
1. Net debt to EBITDA target was previously 1.5 to 2.0 times.
