Johnson Matthey (LON:JMAT) told shareholders at its 2026 Annual General Meeting that it remains on track with its restructuring plans and medium-term commitments, while highlighting progress on cash generation, portfolio changes and new investments.
Opening the meeting, Chair Andy said his first year with the company had been marked by “considerable change” as Johnson Matthey works to simplify the business, sharpen its focus, improve execution and efficiency, and generate more cash. He said the company delivered a “solid performance” in a challenging macroeconomic backdrop and met its revised operating financial commitments.
Profit and cash flow improve
Chief Executive Liam Condon said Johnson Matthey delivered full-year performance in line with previously upgraded guidance for 2025/2026. He said underlying operating profit rose 6% on a reported basis and was up 14%, while the Clean Air business improved margins to the mid-teens.
Condon said Hydrogen Technologies achieved run-rate breakeven, and the group delivered a “very material step-up” in free cash flow, with cash generation up more than 160% year over year. He said these outcomes reflected the company’s focus on costs and cash, despite challenges in its PGM refining business related to its U.K. and U.S. refineries.
Condon said Johnson Matthey remains “completely on track” to deliver its 2027/2028 commitments.
PGM refinery investment advances
Johnson Matthey’s PGM Services business is in a transition period as the company upgrades existing assets and invests in a new platinum group metals refinery in Royston, near Cambridge, Condon said. Early-stage commissioning began in March, and the refinery remains on track to be operational in calendar 2027.
Condon described the project as a “once in a lifetime” investment that is expected to improve operational efficiency and working capital management in PGM Services. He said the company has taken additional actions to keep the project on schedule, increasing capital expenditure expectations for 2026/2027.
In response to a shareholder question about operational metal losses in the U.S. refinery, Chief Financial Officer Alastair Judge said the company estimates metal losses during two-year operating cycles and then reconciles them when refineries are shut down for maintenance. He said the amount of metal lost over the latest two-year period was higher than normally seen, leading to a stock loss booked at period-end.
Catalyst Technologies sale nears completion
Condon said the planned sale of Catalyst Technologies to Honeywell is on track. He said Johnson Matthey had received China antitrust approval, the final outstanding antitrust approval required, and that all deal conditions had been satisfied. The company agreed with Honeywell on a completion date of the following day, Condon said.
Asked about the loss of potential synergies from selling the catalyst business, Condon said the divestment reflected Johnson Matthey’s strategy to focus on areas where it is world-class and has critical mass, particularly around platinum group metals. He said Catalyst Technologies uses “hardly any” platinum group metals and is mainly based around base metals and engineering process technology, making it different from Clean Air, PGM Services and Hydrogen Technologies.
Cormetech acquisition expands emissions platform
Condon also discussed Johnson Matthey’s recently announced acquisition of Cormetech, which he described as the leading manufacturer of selective catalytic reduction catalysts. He said Cormetech has a significant presence in the U.S. power generation market, where demand is increasing due in part to data center growth.
Condon said the acquisition is complementary to Johnson Matthey’s Clean Air Solutions business across technology, customers and geographies, and will create a global leader in stationary emission control. In response to a shareholder question, he said Cormetech’s products help eliminate nitrogen oxides, while Johnson Matthey offers oxidation catalysts that eliminate carbon monoxide, creating cross-selling opportunities.
Condon said Cormetech also has technology in its pipeline for point-source carbon dioxide capture, though Johnson Matthey has not included that opportunity in its forecasts.
Shareholders press board on returns and capital allocation
Several shareholder questions focused on Johnson Matthey’s long-term share performance. Private shareholder Phil Clark cited the company’s total shareholder return over 10 years and asked whether there was “any point” in being a shareholder. Andy said past investment decisions that “went the wrong way” contributed to impairments and write-offs, but said the current plan is designed to improve shareholder returns.
Condon said Johnson Matthey’s total shareholder return over the past five years had exceeded peers such as Umicore and BASF, but added that shareholders should “rightfully” expect more value creation going forward.
Asked about defense against potential foreign takeovers, Andy said the best defense is to have a successful business with well-managed leverage and a plan that gives shareholders and stakeholders confidence. He said the board keeps plans refreshed and uses advisers to prepare for potential situations.
On capital allocation, Judge said Johnson Matthey plans to return GBP 200 million per year to shareholders through a combination of dividends and share buybacks, broadly split about half and half.
The board also noted changes in leadership. Andy said Barbara Jeremiah, Senior Independent Director, and John O’Higgins, Chair of the Remuneration Committee, would step down from the board at the conclusion of the meeting.
About Johnson Matthey (LON:JMAT)
Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.
