Johnson Matthey’s Underlying Profit Hits £340 Million as Catalyst Sale Nets £1.325 Billion
Johnson Matthey reported FY26 revenue of £12.57 billion and underlying operating profit rose to £340 million, while reported EPS swung to a 54.1p loss due to restructuring impacts. The company secured a £1.325 billion sale of Catalyst Technologies and agreed to acquire Cormetech for $360 million to bolster emissions control.
1. FY26 Financial Performance
Johnson Matthey delivered revenue of £12.57 billion for the year ended March 31, 2026, versus £11.02 billion a year earlier. Underlying operating profit increased to £340 million from £299 million and underlying EPS rose to 128.5 pence from 110.7 pence, while reported basic loss per share was 54.1 pence compared with prior-year EPS of 176.0 pence due to restructuring and disposal impacts.
2. Clean Air Division Growth
The Clean Air division drove growth, with underlying operating profit up 12% and underlying margin expanding by 270 basis points to 14.5%. Efficiency initiatives, cost reductions and footprint consolidation supported this improvement, and the company is targeting a Clean Air margin of 16%–18% by fiscal 2028.
3. Strategic Portfolio Moves
Johnson Matthey plans to sell its Catalyst Technologies business for £1.325 billion, with £1 billion of net proceeds earmarked for shareholder returns by August 2026. It also agreed to acquire Cormetech for an enterprise value of $360 million plus up to $100 million in earn-outs, enhancing its U.S. emissions control offerings for power generation and industrial markets.
4. Cash Flow and Outlook
Free cash flow surged to £168 million from £64 million, while net debt rose to £880 million from £810 million. For fiscal 2027, the company expects low- to mid-single-digit underlying profit growth excluding Catalyst and Cormetech, further margin gains in Clean Air, stable PGM Services performance and breakeven in Hydrogen Technologies.
