- Pro forma underlying operating profit grew 38% at constant currency.
- New PGM refinery commissioning starts in 2H 2025/26, operational by 2027.
- £1.8 billion Catalyst Technologies sale completes by 1H 2026.
- £1.4 billion returned to shareholders via dividend and buyback.
Financial Performance
Johnson Matthey reported a 38% increase in pro forma underlying operating profit at constant currency for the first half of 2025. However, reported operating profit decreased by 78% due to prior period disposals.
Clean Air and PGM Refinery
The Clean Air division achieved a 12.4% margin, up 200 basis points year-on-year, and is on track to reach a 14-15% margin in 2025/26. The new PGM refinery is expected to start commissioning in the second half of 2025/26 and become operational in 2027.
Cash Flow and Shareholder Returns
Significant improvement in free cash flow was noted, with expectations for a material increase for the full year. The £1.8 billion sale of Catalyst Technologies is on track for completion by the first half of 2026, with £1.4 billion of net sale proceeds to be returned to shareholders through a special dividend and share buyback program.
Outlook
The company maintains its outlook for underlying operating profit growth at the higher end of a mid single-digit percentage range, despite a challenging macroeconomic environment. Clean Air is expected to see modest profit growth, while PGM Services may experience lower profits due to reduced metal recoveries. Hydrogen Technologies aims for breakeven by the end of 2025/26.
