Johnson Matthey PLC
LSE:JMAT
Johnson Matthey PLC
Nestled in the heart of London, Johnson Matthey PLC operates as a global leader in sustainable technologies, a reputation built over more than two centuries. Founded in 1817, the company began its journey as a humble gold assayer, but its innovative spirit has propelled it into the realm of cutting-edge catalytic science and emissions control. Today, Johnson Matthey is best known for its work in clean air technologies, particularly its automotive catalytic converters, which are vital in reducing harmful emissions from vehicles. Through its expertise in catalysis and materials science, the company has entrenched itself across various sectors, pushing the limits of what clean and sustainable technology can achieve.
Beyond automotive applications, Johnson Matthey has deeply rooted itself in the chemical and energy sectors, addressing global challenges such as climate change and resource scarcity. The company’s battery materials division is at the forefront of delivering high-performance materials to support the ever-growing demand for electric vehicles and renewable energy storage solutions. Meanwhile, in the field of pharmaceuticals, the company provides specialized chemical components critical in the creation of complex medicines. Through these multifaceted operations, Johnson Matthey generates revenue by licensing its technology, manufacturing specialized materials, and maintaining strong partnerships with leading industrial players, all while staying true to its mission: to create a cleaner and healthier world.
Nestled in the heart of London, Johnson Matthey PLC operates as a global leader in sustainable technologies, a reputation built over more than two centuries. Founded in 1817, the company began its journey as a humble gold assayer, but its innovative spirit has propelled it into the realm of cutting-edge catalytic science and emissions control. Today, Johnson Matthey is best known for its work in clean air technologies, particularly its automotive catalytic converters, which are vital in reducing harmful emissions from vehicles. Through its expertise in catalysis and materials science, the company has entrenched itself across various sectors, pushing the limits of what clean and sustainable technology can achieve.
Beyond automotive applications, Johnson Matthey has deeply rooted itself in the chemical and energy sectors, addressing global challenges such as climate change and resource scarcity. The company’s battery materials division is at the forefront of delivering high-performance materials to support the ever-growing demand for electric vehicles and renewable energy storage solutions. Meanwhile, in the field of pharmaceuticals, the company provides specialized chemical components critical in the creation of complex medicines. Through these multifaceted operations, Johnson Matthey generates revenue by licensing its technology, manufacturing specialized materials, and maintaining strong partnerships with leading industrial players, all while staying true to its mission: to create a cleaner and healthier world.
Profit Growth: Underlying operating profit rose by 38%, with Clean Air up 11% and Platinum Group Metals up 33%, showing strong progress despite sales being modestly down.
Clean Air Margins: Clean Air margin improved by 200 basis points, now at 12.4%, and the company is on track to reach its target margin of 14–15% this year and 16–18% by 2027–2028.
Cash Turnaround: Significant improvement in cash generation, moving from an outflow last year to a modest inflow this half; annualized free cash flow of at least GBP 250 million expected by 2027–2028.
Catalyst Technologies Sale: The sale of Catalyst Technologies to Honeywell is on track for completion in the first half of 2026, with GBP 1.4 billion to be returned to shareholders after closure.
Refinery Project: The new GBP 350 million Platinum Group Metal refinery is delayed by a few months but remains on track for commissioning by March 2026, with no impact on customer deliveries or guidance.
Dividend Maintained: Dividend held at 22p per share despite higher net debt, driven by Catalyst Technologies outflow and refinery stock build.
Organizational Changes: Company is streamlining its management and reducing overheads, moving to a smaller executive team as part of a new, cash-focused business model.
Positive Outlook: Management affirmed full-year guidance and reiterated medium-term targets for profit, cash flow, and shareholder returns.
