9th Oct 2025 10:17
(Alliance News) - Johnson Matthey PLC on Thursday said it was making encouraging progress on free cash flow as it predicted a brighter full-year outlook.
The London-based speciality chemicals maker said the outlook for the full year, excluding Catalyst Technologies and Value Businesses, is at the higher end of initial guidance of mid single digit growth in underlying operating profit.
In the financial year to March, the FTSE 250-losting reported underlying operating profit of GBP389 million.
In May, Johnson Matthey struck a GBP1.8 billion deal to its Catalyst Technologies business to Honeywell International Inc.
On Thursday, the firm said it continues to make progress on both regulatory approvals and the carve-out of the business, and expects the transaction to complete by the first half of calendar 2026.
Shares in Johnson Matthey were up 0.4% at 2,054.00 pence each in London on Thursday morning.
For financial 2026, Catalyst Technologies will be reported as a discontinued operation in accordance with IFRS 5, the firm explained.
Johnson Matthey said Catalyst Technologies underlying operating profit in the first half of the financial year is expected to be materially down year-on-year, impacted by weaker demand for catalysts and the timing of licensing wins in key end markets.
But it believes the long-term growth potential for this business remains strong.
Overall group performance will continue to be weighted towards the second half, Johnson Matthey said.
It now predicts an around GBP10 million net benefit to full year operating performance compared with the prior year should precious metal prices and foreign exchange rates remain at their current levels compared to prior expectations for a GBP5 million hit.
In addition, Johnson Matthey highlighted "encouraging" progress on free cash flow.
The company expects to report a "significant" year-on-year improvement in the first half compared to the GBP169 million outflow the year prior, with a "material" step up in free cash flow for the full year compared to the prior year GBP59 million inflow.
Half year results for the six months ended September 30 will be published on November 20.
By Jeremy Cutler, Alliance News reporter
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