Delivering on our strategy – creating a focused, lean and cash generative group
- Good progress on executing JM’s new strategy to create a focused, lean and cash generative group, with a significant increase in free cash flow¹ year-on-year – £168 million, up 163%
- Delivered solid 2025/26 operating profit in line with previously upgraded guidance: pro forma underlying operating profit² up 6% at constant PGM prices and FX
- Reported operating profit down 65% due to significant profit on disposals in the prior year, partly offset by lower impairment and restructuring charges
- Delivered 14.5% underlying operating margin in Clean Air, up 270 basis points year-on-year; on track to achieve guidance of 16% to 18% in 2027/28
- PGM Services impacted by operational metal losses in our US refinery. Started early-stage commissioning of new UK PGM refinery; on track to be operational in calendar year 2027
- £1,325 million sale of Catalyst Technologies³ on track to complete by the end of August 2026: £1 billion of net sale proceeds to be returned to shareholders following completion ⁴
- Agreed acquisition of CORMETECH Inc. (Cormetech) for an enterprise value of $360 million (10.3x expected 2026 EBITDA, pre-synergies⁵) to drive growth in stationary emissions control applications, including for the rapidly growing data centre market in the US
- On track to deliver sustainable free cash flow of at least £250 million p.a. by 2027/28, of which at least £200 million p.a. will be returned to shareholders in respect of 2026/27 and beyond
Liam Condon, Chief Executive Officer, commented:
In May 2025, we set out our strategy to transform Johnson Matthey into a focused, lean and cash generative group. The significant increase in cash generation shows our strategy is working. We also made progress in the year on decisive portfolio changes that will reshape the company for years to come and drive sustainable value creation. The sale of Catalyst Technologies is on track and the acquisition of Cormetech represents another important milestone in JM’s development. Cormetech will materially enhance the scale of Clean Air Solutions and create a global leader in stationary emissions control, including for the rapidly growing data centre market. Together with the progress we are making on strengthening our core businesses, we are on track to achieve our medium-term targets and deliver enhanced shareholder returns.
Group outlook for the year ending 31st March 2027
For 2026/27, we expect low to mid single digit percentage growth in group underlying operating profit at constant precious metal prices and constant currency¹². This is on a basis that excludes Catalyst Technologies and Cormetech. Performance will be weighted towards the second half.
In Clean Air we expect good growth in operating profit, with further margin improvement driven by ongoing efficiency initiatives. This is based on external data which suggest a 3% decline in global light duty vehicle production for 2026/27. In PGM Services we expect operating profit to be in line with 2025/26. This reflects higher process loss provisions, lower metal recoveries and higher maintenance costs relating to our current UK refinery, offset by a reduction in operational metal losses in our US refinery¹³. In Hydrogen Technologies, we expect to be at operating profit breakeven¹⁴.
If PGM (platinum group metal) prices remain at their current level for the remainder of 2026/27, we expect a benefit of at least £25 million to full year operating profit compared with the prior year¹⁵. At current foreign exchange rates, translational foreign exchange movements for the year ending 31st March 2027 are expected to have a £2 million adverse impact to underlying operating profit¹⁶.
For 2026/27, we expect to deliver a further improvement in free cash flow generation¹⁷. Group capital expenditure is now expected to be higher at c.£230 million (previously c.£140 million) to support delivery of our new PGM refinery in line with our committed timelines. This increase will be fully offset by additional working capital efficiencies due to significant progress already made, which will be further accelerated.
We expect the acquisition of Cormetech to complete at the end of June or in July 2026, and the business to deliver strong operating profit growth in 2026/27 (2025/26 operating profit: £12 million).
We remain mindful of the heightened geopolitical and macroeconomic uncertainty due to the Middle East conflict. Whilst there was no material financial impact in 2025/26, our performance may be impacted by the future impact on global demand, supply chains and inflation.
Dividend
The board will propose a final ordinary dividend of 55.0 pence per share at the Annual General Meeting (AGM) on 16th July 2026. 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 (2024/25: 77.0 pence per share). Subject to approval by shareholders, the final dividend will be paid on 4th August 2026, with an ex-dividend date of 4th June 2026.
Board changes
With effect from the close of this year’s AGM on 16th July 2026, Barbara Jeremiah and John O’Higgins will retire from the Board. Barbara has served as a Non-Executive Director and the Senior Independent Director for three years. John has been a Non-Executive Director for almost nine years and, in recent years, the Chair of the Remuneration Committee. Both Barbara and John have brought a great depth of business knowledge as well as extensive board experience to their roles.
The Board is pleased to announce that Julie Southern will succeed Barbara Jeremiah as Non-Executive Director and Senior Independent Director of the Company, effective from the close of this year’s AGM. Julie has a wealth of FTSE Board and C-Suite experience, including in finance, strategy, business development and governance. Sinead Lynch will succeed John as Chair of the Remuneration Committee.
Enquiries:
Investor Relations
Louise Curran, Head of Investor Relations: +44 20 7269 8235
Media
Gill Corish, Head of External Communications (Interim): +44 20 7269 8001
Guy Bates, Kekst CNC: +44 7581 056 415
Notes:
1. Free cash flow defined as net cash flow from operating activities (excluding disposal related costs) after net interest paid, net purchases of non-current assets and investments and the principal elements of lease payments, adjusted to reflect the classification of Catalyst Technologies as a discontinued operation. 2024/25: £64 million inflow.
2. Pro forma financials exclude Catalyst Technologies (discontinued) and Value Businesses (divested) as shown on
page 10.
3. Enterprise value of £1,325 million on a cash and debt-free basis.
4. Comprising £800 million through a special dividend with a share consolidation, and £200 million through an on-market share buyback programme.
5. Acquisition of Cormetech for an enterprise value of $360 million payable in cash, which represents a 10.3x acquisition multiple pre-synergies based on expected 2026 EBITDA of c.$35 million. An additional earn-out consideration of up to $100 million in total may be payable in cash during calendar years 2028 and 2029, conditional on Cormetech achieving certain financial performance targets. Further detail included in the transaction announcement.
6. 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 2025/26 results converted at 2024/25 average rates. In 2025/26, the translational impact of exchange rates on group sales and underlying operating profit (continuing) was an adverse impact of £37 million, and nil respectively.
7. Underlying is before gain on significant legal proceedings, profit on disposal of businesses, share of profits or losses from non-strategic equity investments, major impairment and restructuring charges, one-off tax transactions and, where relevant, related tax effects. For definitions and reconciliations of other non-GAAP measures, see pages 46 to 51.
8. 2024/25 is restated to reflect the classification of Catalyst Technologies as a discontinued operation following the agreed sale, and the group’s updated reporting segments where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.
9. Revenue excluding cost of precious metals to customers and the precious metal content of products sold to customers.
10. Underlying profit after tax is adjusted by £45 million for the effect of deferred tax asset not recognised following the agreed sale of Catalyst Technologies.
11. Based on weighted average number of shares in issue of 168.2 million in 2025/26 (2024/25: 176.0 million). Reduction due to share buyback programme from 3rd July 2024 to 12th December 2024.
12. Baseline is underlying operating profit which excludes Catalyst Technologies and Cormetech: £340 million in 2025/26 as shown on page 10.
13. Operational metal losses in our US refinery were recognised in 2025/26. See further details on page 14.
14. Outlook commentary for Clean Air, PGM Services, Hydrogen Technologies and Cormetech refers to underlying operating profit and assumes constant precious metal prices and constant currency.
15. Based on average precious metal prices in May 2026 (month to date). A US$100 per troy ounce change in the average annual platinum, palladium and rhodium metal prices each have an impact of approximately £1.0 million, £1.0 million and £0.5 million respectively on full year 2026/27 underlying operating profit in PGM Services. This assumes no foreign exchange movement and takes hedging activities into account.
16. Based on foreign exchange rates as at 21st May 2026 (£:US$ 1.34, £:€ 1.16, £:INR 129.03, £:RMB 9.12).
