**Summary of Johnson Matthey Half-Year Results (20 November 2025):**
Johnson Matthey PLC reported strong half-year results for the six months ended 30 September 2025, highlighting a leaner, more focused, and cash-generative business. Key financial highlights include
**Underlying Operating Profit** Pro forma underlying operating profit increased by 38% at constant currency, reaching £142 million. Reported operating profit decreased by 78% to £117 million due to prior-period profit on disposals.
**Clean Air Performance** Clean Air delivered a 12.4% margin, up 200 basis points year-on-year, and is on track to achieve 14-15% margin guidance for 2025/26.
**PGM Refinery** Commissioning of a new PGM (Platinum Group Metal) refinery is expected in the second half of 2025/26, with full operation by 2027.
**Cash Flow** Significant improvement in free cash flow, with a material step-up expected for the full year.
**Catalyst Technologies Sale** The £1.8 billion sale of Catalyst Technologies is on track to complete by the first half of 2026, with £1.4 billion of net proceeds to be returned to shareholders via a special dividend (£1.15 billion) and share buyback (£250 million).
**Outlook** Full-year underlying operating profit growth is expected at the higher end of mid-single-digit percentage range, despite macroeconomic challenges.
**Strategic Updates**
**Business Transformation** Focus on efficiency and cash generation, with streamlined operations and reduced corporate headcount by 10%.
**Clean Air** Targeting sales of over £2 billion and 16-18% operating margin by 2027/28, with significant cash generation.
**PGM Services** New refinery to enhance efficiency and support growth, with sales of £450 million and 30% operating margin expected by 2027/28.
**Hydrogen Technologies** On track to achieve operating profit breakeven by 2025/26 and cash flow positivity by 2026/27.
**Leadership Changes**
Andrew Cosslett appointed as Non-Executive Chair.
Alastair Judge appointed as Chief Financial Officer.
Richard Pike transitioned to Chief Operating Officer.
**Financial Metrics**
Revenue£5.353 billion (+1% year-on-year).
Underlying EPS51.2 pence (+40% year-on-year).
Net debt£971 million (up from £799 million in September 2024).
Interim dividend maintained at 22.0 pence per share.
**Conclusion**
Johnson Matthey is progressing well in its strategic transformation, focusing on efficiency, cash generation, and shareholder returns, despite macroeconomic headwinds. The company remains on track to achieve its medium-term targets and enhance shareholder value.
| Metric | 2025 (6 months) | 2024 (6 months) | Change |
|---|---|---|---|
| Revenue | £5,353 million | £5,309 million | +1% |
| Operating Profit | £117 million | £527 million | -78% |
| Profit Before Tax | £86 million | £506 million | -83% |
| Net Debt | £971 million | £799 million | +22% |
| Free Cash Flow | £4 million | -£165 million | +102% |
| Underlying Operating Profit (pro forma, constant FX) | £142 million | £104 million | +38% |
| Clean Air Margin | 12.4% | 10.4% | +200 bps |