- Catalyst Technologies sale to Honeywell expected to complete by H1 2026.
- 2025/26 financials will exclude Catalyst Technologies, reported as discontinued.
- Group free cash flow shows improvement, with a £169 million outflow in H1 2024/25.
- Full-year operating profit outlook at higher end of mid single-digit growth.
Sale of Catalyst Technologies
Johnson Matthey has agreed to sell its Catalyst Technologies business to Honeywell International Inc., with the transaction expected to complete by the first half of 2026. For the 2025/26 financial year, Catalyst Technologies will be reported as a discontinued operation, and its financials will be excluded from the group's headline figures.
Financial Reporting Adjustments
To facilitate comparison with previous periods, Johnson Matthey has provided a breakdown of sales and underlying operating profit by business for the year ending 31st March 2025. The group expects strong performance in underlying operating profit, driven by efficiency improvements and robust trading in the PGM Services business.
Cash Flow and Profit Outlook
Despite an expected outflow in group free cash flow for the first half, there is a significant year-on-year improvement from a £169 million outflow in H1 2024/25. The company anticipates a material increase in free cash flow for the full year compared to the previous year. The full-year outlook for underlying operating profit is at the higher end of the initial guidance of mid single-digit growth.
Impact of Market Conditions
If current precious metal prices and foreign exchange rates persist, Johnson Matthey expects a £10 million net benefit to full-year operating performance compared to the prior year. Discontinued operations in Catalyst Technologies are expected to see a decline in underlying operating profit due to weaker demand and timing of licensing wins, although long-term growth potential remains strong.
