Johnson Matthey (JM) has delivered a robust first-half performance, highlighting the company’s shift toward a leaner, more focused, and cash-generative business. Pro forma underlying operating profit rose 38% at constant currency, despite reported operating profit falling 78% due to prior-year gains on disposals.

The Clean Air division saw a 12.4% margin, up 200 basis points year-on-year, keeping the company on track to hit its 14–15% margin target for 2025/26. Meanwhile, the new platinum group metals (PGM) refinery is expected to start commissioning in the second half of 2025/26, with full operations planned for 2027.

JM’s transformation into a cash-focused model is already delivering results. First-half free cash flow improved significantly, with a material step-up expected for the full year. The £1.8 billion sale of Catalyst Technologies is on schedule to complete in the first half of 2026, with £1.4 billion in net proceeds earmarked for shareholders via a £1.15 billion special dividend and a £250 million share buyback.

Chief Executive Liam Condon said: “We are transforming Johnson Matthey into a more highly focused, lean, and cash-generative business. Efficiency gains have driven strong first-half performance, and we expect a material step-up in free cash flow for the full year. Catalyst Technologies is on track to complete as planned, unlocking significant value for our shareholders.”

Looking ahead, JM expects full-year underlying operating profit growth at the higher end of a mid single-digit percentage range, with second-half results weighted slightly lower due to reduced metal recoveries in PGM Services. Clean Air margins are expected to reach 14–15% despite a projected 5% decline in global light-duty vehicle production. Hydrogen Technologies is on track to achieve operating profit breakeven by the end of 2025/26.

If current PGM prices hold, JM anticipates a £20 million boost to full-year operating profit, with foreign exchange movements expected to have limited impact. Over the medium term, the company targets at least mid single-digit CAGR in pro forma operating profit through 2027/28.