Johnson Matthey (LSE:JMAT) said it expects low-to-mid single-digit growth in group underlying operating profit for the year ending 31 March 2027, excluding Catalyst Technologies and Cormetech, with performance weighted to the second half.
The company, in today's full year results for the twelve months ended 31 March 2026, reported a 163% year-on-year increase in free cash flow to £168m, whilst pro forma underlying operating profit was up 6% at constant platinum group metal prices and FX. Operating profit fell 65%, reflecting the business disposals in the prior year.
Clean Air delivered a 14.5% underlying operating margin, up 270 basis points year-on-year, whilst PGM Services was hit by operational metal losses and, in the US refinery, even as early-stage commissioning began at the new UK PGM refinery due to be operational in calendar year 2027 and Hydrogen Technologies reached run-rate breakeven in Q4.
Johnson Matthey said the £1,325m agreed sale of Catalyst Technologies remains on track to complete by the end of August 2026 with £1bn of net proceeds to be returned to shareholders.
Separately, it agreed to acquire Cormetech for an enterprise value of $360m with the deal expected to close at the end of June or in July 2026.
The group reiterated a medium-term target to deliver sustainable free cash flow of at least £250m a year by 2027/28, of which at least £200m a year will be returned to shareholders, and said group capex for 2026/27 is now expected to be c.£230m (previously c.£140m).
"The significant increase in cash generation shows our strategy is working," Chief Executive Liam Condon said.
It proposes a final dividend of 55.0p per share, to maintain it totals dividend of 77.0p per share for the year.
