Johnson Matthey’s Strategic Shift and Financial Performance

Johnson Matthey ( (JMPLY) ) has released its Q4 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, with a strong focus on Clean Air and PGM Services. The company recently announced its preliminary results for the fiscal year ending March 31, 2025, highlighting a strategic shift towards becoming a more focused and agile organization.

In a significant move, Johnson Matthey agreed to sell its Catalyst Technologies business to Honeywell International for £1.8 billion, a transaction expected to enhance shareholder value and streamline operations. The company plans to return £1.4 billion of the net sale proceeds to shareholders. Despite a challenging market environment, Johnson Matthey reported an underlying operating profit of £388 million, a 6% increase at constant PGM prices and currency.

Key financial metrics for the year included a reported operating profit of £538 million, benefiting from a £482 million profit on business disposals, although offset by £329 million in impairment and restructuring charges. Revenue was £11,674 million, down 9% from the previous year, with sales excluding precious metals at £3,470 million, a decrease of 11%. The company’s free cash flow improved significantly to £521 million.

Looking ahead, Johnson Matthey expects mid-single-digit growth in underlying operating profit for 2025/26, supported by self-help measures and operational excellence. The company remains optimistic about its core businesses, Clean Air and PGM Services, and anticipates continued growth in its sustainable technologies portfolio.

Overall, Johnson Matthey is poised to leverage its strong market positions and focus on sustainable cash generation, aiming for enhanced shareholder returns and a leaner, more agile business model in the coming years.