Johnson Matthey Reports Strong First Half Performance

Johnson Matthey ( (JMPLY) ) has released its Q2 earnings. Here is a breakdown of the information Johnson Matthey presented to its investors.

Johnson Matthey is a British multinational company specializing in sustainable technologies, primarily within the chemicals and precious metals sectors. The company is known for its expertise in emission control technologies and precious metal products.

Johnson Matthey reported a robust performance in the first half of the fiscal year 2025/26, with a significant increase in pro forma underlying operating profit by 38% at constant currency. The company is undergoing a transformation to become more focused and cash generative, highlighted by the sale of its Catalyst Technologies division and a strategic shift towards Clean Air and PGM Services.

Key financial metrics showed a mixed performance, with revenue slightly increasing to £5,353 million, while sales excluding precious metals fell by 9%. The company’s operating profit saw a substantial decline due to previous period disposals, but underlying operating profit showed strong growth. Johnson Matthey is on track to complete the sale of Catalyst Technologies by the first half of 2026, with plans to return £1.4 billion to shareholders through dividends and buybacks.

The company remains optimistic about its future, expecting growth in underlying operating profit at the higher end of a mid-single-digit percentage range for the full year. The management is confident in achieving medium-term targets, driven by efficiency improvements and enhanced cash generation, aiming for sustainable free cash flow and increased shareholder returns.

Looking ahead, Johnson Matthey is focused on maintaining its leadership in Clean Air technologies and expanding its PGM Services, with plans to commission a new PGM refinery by 2027. The company is committed to delivering strong financial performance and shareholder value amidst a challenging macroeconomic environment.