Johnson Matthey Half Year Results

Strong 1H performance whilst delivering a leaner, more focused and cash generative JM

·

Strong performance with pro forma underlying operating profit¹ up 38% at constant currency. Reported operating profit down 78% due to profit on disposals in prior period

·

Delivered 12.4% margin in Clean Air, up 200 basis points year-on-year, and on track to achieve margin guidance of 14 to 15% in 2025/26

·

Expect to start commissioning new PGM refinery in second half of 2025/26, and be operational in calendar year 2027

·

Good progress in implementing a cash-focused business model: significant improvement in first half free cash flow and expect a material step up for the full year²

·

£1.8 billion Catalyst Technologies sale on track to complete by first half of calendar year 2026³

·

£1.4 billion of net sale proceeds to be returned to shareholders: £1.15 billion via special dividend and £250 million via share buyback programme

·

Outlook unchanged⁴,⁵: expect to deliver growth in full year underlying operating profit at the higher end of a mid single digit percentage range, at constant PGM prices and currency

Underlying results(continuing)⁶,⁷

Reported results (continuing)

Half year ended30th September

%change

% change,pro forma¹, constant FX rates

Half year ended30th September

%change

2025

2024⁸

2025

2024⁸

Revenue

£m

5,353

5,309

+1

Sales excl. precious metals⁹

£m

1,279

1,402

-9

-4

Operating profit

£m

142

106

+34

+38

117

527

-78

Profit before tax

£m

110

83

+33

86

506

-83

Profit after tax

£m

86

66

+30

(16)

448

-104

Basic earnings per share¹⁰ 

pence

51.2

36.6

+40

(9.5)

247

-104

Interim dividend per share

pence

22.0

22.0

-

Free cash flow

£m

4

(165)

Cash from operating activities

£m

188

(44)

Net debt

£m

971

799

Liam Condon, Chief Executive Officer, commented:

Following the agreement to sell Catalyst Technologies, we are transforming Johnson Matthey into a more highly focused, lean and cash generative business. Our focus on increased efficiency has driven a strong first half performance with significant growth in pro forma underlying operating profit¹. We are also making good progress in implementing our cash-focused business model, with the benefits starting to come through and a material step up in free cash flow expected for the full year². The carve out of Catalyst Technologies is progressing well and we remain on track to complete the transaction by the first half of calendar year 2026.

For the full year, we expect to deliver growth in underlying operating profit at the higher end of a mid single digit percentage range⁵,¹¹. Looking ahead, with momentum building in efficiency and cash generation, we are on track to achieve our medium-term targets and deliver materially enhanced shareholder returns.

Unchanged group outlook for the year ending 31st March 2026⁴

For 2025/26, we expect to deliver underlying operating profit growth at the higher end of a mid single digit percentage range, despite the challenging macroeconomic environment. This is on apro forma basis, excluding Catalyst Technologies and Value Businesses, and at constant precious metal prices and constant currency.⁵ Overall performance will continue to be weighted towards the second half. However, second half performance will be lower year-on-year driven by PGM Services, reflecting lower metal recoveries and refining volumes, as expected.

In Clean Air we expect modest growth in operating profit, with a margin of 14 to 15%. This is based on external data which suggest a 5% decline in global light duty vehicle production for 2025/26. Operating profit growth and margin expansion will be driven by our ongoing operational excellence and transformation benefits. In PGM Services, we expect lower operating profit largely reflecting reduced metal recoveries. In Hydrogen Technologies, we continue to expect to achieve operating profit breakeven by the end of 2025/26.¹¹

If PGM (platinum group metal) prices remain at their current level¹² for the remainder of 2025/26, we expect a c.£20 million benefit to full year operating profit compared with the prior year.¹³

At current foreign exchange rates¹⁴, translational foreign exchange movements for the year ending 31st March 2026 are expected to have a limited effect on underlying operating profit.

Over the medium-term to 2027/28, we continue to expect at least mid single digit CAGR inpro forma operating profit.⁵

Dividend

The board has approved an interim dividend of 22.0 pence per share, maintained at the same level as the prior year (1H 2024/25: 22.0 pence per share). The interim dividend will be paid on3rd February 2026, with an ex-dividend date of 27th November 2025, to shareholders on the register at the close of business on 28th November 2025.

Board and Group Leadership Team changes

On 17th July 2025, we announced the appointment of Andrew Cosslett as Non-Executive Chair of the Board. He is also a member and Chair of the Nomination Committee and member of the Societal Value Committee. Andrew is an experienced Chair with a strong track record in leading significant transformational and cultural change, to help deliver long-term shareholder value. He is currently Chair of ITV plc and has held a number of senior executive and non-executive roles across a range of sectors. Andrew succeeds Patrick Thomas who stepped down from the Board at the end of the 2025 Annual General Meeting in July.

As JM transitions into a more highly focused and lean business, we have further streamlined our Group Leadership Team from nine to six people. These changes, which will support the focused implementation of JM's strategy, are effective from 1st January 2026.

Alastair Judge, currently Head of Strategy and Operations, has been appointed Chief Financial Officer and member of the Board. Richard Pike, JM's current Chief Financial Officer and Chief Executive of PGM Services - having assumed responsibility of PGM Services in August 2025 - will assume the role of Chief Operating Officer and will remain on the Board. These organisational changes will further strengthen our ability to deliver on our strategy, drive cash generation and increase shareholder returns.

Anish Taneja, Chief Executive of Clean Air and Hydrogen Technologies, has decided to leave Johnson Matthey to take up an external position, based in Germany. Anish joined JM in 2022 and has successfully strengthened Clean Air, leaving the business well positioned to deliver on its strategy.

Enquiries: 

Investor Relations

Louise Curran

Head of Investor Relations

+44 20 7269 8235

Media

Sinead Keller

Harry Cameron 

Group External Relations Director

Teneo

+44 20 7269 8218

+44 7799 152 148

Notes:

1. 

Pro forma financials exclude Catalyst Technologies (discontinued) and Value Businesses (divested) as shown onpage 8.

2. 

Free cash flow defined as net cash flow from operating activities (excluding disposal related costs) after net interest paid, net purchases of non-current assets and investments and the principal elements of lease payments, adjusted to reflect the classification of Catalyst Technologies as a discontinued operation. 2024/25: £64 million inflow.

3. 

Enterprise value of £1.8 billion on a cash and debt-free basis.

4. 

Outlook unchanged from pre-close trading update published on 9th October 2025.

5. 

Baseline is pro forma underlying operating profit which excludes Catalyst Technologies and Value Businesses -£298 million in 2024/25 as shown on page 9.

6. 

Unless otherwise stated, sales and operating profit commentary refers to performance at constant exchange rates. Growth at constant rates excludes the translation impact of foreign exchange movements, with 1H 2025/26 results converted at 1H 2024/25 average rates. In 1H 2025/26, the translational impact of exchange rates on group sales and underlying operating profit (continuing) was an adverse impact of £26 million and £2 million respectively.

7. 

Underlying is before gain on significant legal proceedings, profit on disposal of businesses, share of profits or losses from non-strategic equity investments, major impairment and restructuring charges, one-off tax transactions and, where relevant, related tax effects. For definitions and reconciliations of other non-GAAP measures, see pages 48 to 53.

8. 

1H 2024/25 is restated to reflect the classification of Catalyst Technologies as a discontinued operation following the agreed sale, and the group's updated reporting segments where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.

9. 

Revenue excluding cost of precious metals to customers and the precious metal content of products sold to customers.

10.

Based on weighted average number of shares in issue of 168.0 million in 1H 2025/26 (1H 2024/25: 181.7 million). Reduction due to share buyback programme from 3rd July 2024 to 12th December 2024.

11.

Outlook commentary for Clean Air, PGM Services and Hydrogen Technologies refers to underlying operating performance and assumes constant precious metal prices and constant currency.

12.

Based on average precious metal prices in November 2025 (month to date).

13.

A US$100 per troy ounce change in the average annual platinum, palladium and rhodium metal prices each have an impact of approximately £1 million, £1 million and £0.5 million respectively on full year 2025/26 underlying operating profit in PGM Services. This assumes no foreign exchange movement.

14.

Based on foreign exchange rates as at 11th November 2025 (£:US$ 1.32, £:€ 1.14, £:INR 116.55, £:RMB 9.38).

Strategic update

Following the agreed sale of Catalyst Technologies to Honeywell International Inc. (Honeywell), we are re-shaping JM into a more highly focused, lean and cash generative business. Through leveraging our leading market positions in Clean Air and PGM Services, and driving efficiencies across the group, we expect to deliver a step change in cash generation and materially enhanced shareholder returns.

Driving a step change in cash generation

We are implementing a cash-focused business model, incorporating ongoing actions across three key areas: overhead reduction, materially lower capex and improved working capital management. These priorities are reflected in our executive remuneration schemes, with 37.5% of the annual bonus now linked to free cash flow, 37.5% based on underlying profit before tax and the remaining 25% based on strategic targets.

As we drive efficiencies, in the first half we streamlined our support functions including Finance, IT, HR and Procurement, and reduced our corporate headcount by around 10%. Construction of our new PGM refinery is progressing and, when this is complete, we expect group capex to reduce materially to c.£120 million per annum by 2027/28, below depreciation and amortisation. We have identified opportunities to reduce total working capital by c.£250 million by 2027/28, with progress in the period including improving supplier payment terms and optimising the frequency of payment runs. Our focus on reducing overheads and capex, and improved working capital management will enable us to generate annualised sustainable free cash flow of at least £250 million by 2027/28.

Committed to materially enhanced shareholder returns

We have a disciplined capital allocation policy which will deliver materially enhanced shareholder returns, whilst maintaining a strong balance sheet following completion of the Catalyst Technologies disposal. We are targeting net debt to EBITDA of 1.0 to 1.5 times. Our priorities for use of capital are:

1.

Organic investment - focused on maintenance and operational improvement after the completion of our new PGM refinery

2.

Shareholder returns - growing annual cash returns to shareholders from at least £130 million for 2025/26 (ordinary dividend) to at least £200 million for 2026/27 and beyond (split between ordinary dividends and share buybacks)

3.

Bolt-on acquisitions only considered for highly compelling opportunities in core areas

Clean Air - a leading global player driving material margin improvement

In Clean Air, we aim to be a lasting partner providing world-leading technology to support our customers and reduce harmful emissions.

We are focused on maintaining our leading position in diesel, securing a profitable share in gasoline including hybrids, and driving continued margin improvement. In the half, we won new gasoline hybrid business with leading Chinese OEMs. We will also benefit from longer-term growth in our Clean Air Solutions business by applying our leading technology to emerging emissions control applications such as hydrogen internal combustion engines, backup generators for data centres and CO2 capture. For example, we recently signed multi-year contracts for emissions control technology for data centre applications.

In the first half, we delivered an operating margin improvement of 200 basis points, to 12.4%. We reduced headcount by c.10%, primarily across R&D and manufacturing. R&D and SG&A spend is on track to reduce by c.20% by the end of 2025/26. We also made further progress consolidating our manufacturing footprint, closing an additional production line in India. Overall, we now have 11 plants and 21 lines (2021/22: 16 plants, 50 lines).

Underpinned by benefits from these initiatives, as well as ongoing operational and commercial excellence, we are targeting operating margin improvement to 14 to 15% for full year 2025/26. Alongside driving efficiency, we have been focused on employee engagement, which has continued to increase despite the extensive transformation that is ongoing across our Clean Air business.

Longer-term, we remain on track to deliver Clean Air sales of more than £2 billion (of which c.90% of the business is already won) and an operating margin of 16 to 18% in 2027/28. Additionally, we expect Clean Air to generate at least £2.1 billion of further cash by 2030/31¹, with significant cash flow beyond.

PGM Services - a world leader in PGMs

PGM Services is the world's largest secondary refiner of PGMs (by volume), the global liquidity hub for PGMs² and expert in converting PGMs into high value products for a wide range of industries.

We are investing in a new world-class PGM refinery to replace our aged UK asset. This investment will support increasing demand for secondary (recycled) metal, as well as deliver significant efficiency, resilience, safety and sustainability benefits. We expect to start commissioning the facility in the second half of fiscal year 2025/26, and be operational in calendar year 2027.

In PGM Products, we continue to expect growth in new, high value PGM applications for a wide range of industries such as agrochemicals, pharmaceuticals and defence.

Over the next couple of years, until our new PGM refinery is fully operational, we expect increased maintenance costs relating to our current aged refinery, as well as lower metal recoveries. In addition, we will incur dual-running costs and higher depreciation costs from 2027 onwards as the new refinery comes online, before returning to growth in 2027/28. In 2027/28, we expect PGM Services to generate sales of around £450 million, with an operating margin of around 30%³. Beyond this, underpinned by our new refinery and growth in PGM Products, we expect PGM Services to deliver at least low single digit CAGR in underlying operating profit over the medium to long-term.

Hydrogen Technologies - a leader in fuel cell and electrolyser components

Hydrogen Technologies is well-positioned in the green hydrogen market. Reflecting the market slowdown we have restructured the business to reduce costs, whilst maintaining long-term growth optionality. We continue to expect Hydrogen Technologies to reach operating profit breakeven by the end of 2025/26 and be cash flow positive in 2026/27⁴.

Notes:

1.

Delivered £2.4 billion of cash cumulatively from 1st April 2021 to 31st March 2025. Cash target of at least £4.5 billion from 1st April 2021 to 31st March 2031, pre-tax and post restructuring costs.

2.

Global liquidity hub for PGM sponge (powder).

3.

Assumes broadly constant PGM prices.

4.

Cash flow defined as underlying operating profit plus depreciation and amortisation (EBITDA), less capital expenditure and net working capital movements. 

Sale of Catalyst Technologies

As announced on 22nd May 2025, we have agreed the sale of Catalyst Technologies to Honeywell for an enterprise value of £1.8 billion on a cash and debt-free basis. The carve out of Catalyst Technologies is progressing well and we have received the vast majority of competition authority approvals. We continue to expect completion by the first half of calendar year 2026.

Following completion, we intend to return £1.4 billion of net proceeds to shareholders -£1.15 billion via a special dividend with a share consolidation, and the remaining £250 million via an on-market share buyback programme.

What JM will deliver by 2027/28

JM will become a highly streamlined group, delivering a step change in cash generation and materially enhanced shareholder returns. By 2027/28 we expect:

·

At least mid single digit CAGR in pro forma underlying operating profit (2024/25 baseline¹)

·

Annualised sustainable free cash flow of at least £250 million driven by cost savings, lower capex and improved working capital management

·

Cash returns of at least £200 million per annum to shareholders

Milestones overview

As we transition the group to a more highly focused and lean business with higher cash generation, we are making good progress against our strategic milestones set out in May 2025. Where appropriate, the milestones have been updated to exclude Catalyst Technologies.

Financial

·

Increase Clean Air underlying operating margin to 16 to 18% by end of 2027/28

·

Achieve operating profit breakeven and positive cash flow in Hydrogen Technologies²

Operational

·

Carve out Catalyst Technologies following agreed sale³

·

Operate new world-class PGM refinery in calendar year 2027 (previously by end of 2026/27)

·

Improve customer net promoter score to >41 by end of 2025/26⁴

Sustainability

·

Improve ICCA process safety event severity rate to 0.60 by end of 2026/27⁵

·

Increase employee engagement score to at least 7.2 by end of 2025/26⁶

·

Reduce scope 1 and 2 CO₂e emissions by 57% by end of 2026/27⁷

Notes:

1.

Baseline is pro forma underlying operating profit which excludes Catalyst Technologies and Value Businesses - £298 million in 2024/25 as shown on page 9.

2.

Operating profit breakeven by the end of 2025/26 and cash flow positive in 2026/27. Cash flow defined as underlying operating profit plus depreciation and amortisation (EBITDA), less capital expenditure and net working capital movements.

3.

Completion expected by the first half of calendar year 2026.

4.

Net promoter score is a market research survey metric to measure customer satisfaction and loyalty, calculated from our annual customer survey data. 2024/25 baseline: 41.

5.

ICCA - International Council of Chemical Associations. 2024/25 baseline: 0.78.

6.

March 2025 baseline: 7.1.

7.

Metric tonnes of greenhouse gases. 2019/20 baseline: 249,465 tonnes CO2 equivalents.

Performance summary for the six months ended 30th September 2025¹

Pro forma underlying operating profit² - excluding the impact of PGM prices - grew 29% in the period. Our performance was supported by self-help actions including cost efficiencies across the group. Average PGM prices increased in the half, with a benefit to underlying operating profit of £10 million. Including the impact of PGM prices, pro forma underlying operating profit² grew 38%.

Clean Air underlying operating profit grew 11% and margin expanded 200 basis points to 12.4%, driven by efficiency benefits. These included reduced R&D and SG&A overheads in the business, as well as benefits from operational excellence and footprint consolidation. PGM Services delivered a strong first half with underlying operating profit up 33%, driven by higher average PGM prices, strong performance in our PGM trading business and efficiencies. Hydrogen Technologies delivered a smaller operating loss of £18 million reflecting benefits from cost control actions taken in 2024/25 as we restructured the business and reduced headcount.

On a reported basis, operating profit decreased to £117 million (1H 2024/25: £527 million³). The decline largely reflected a £484 million profit on disposal recognised in the prior year, principally related to Medical Device Components. We incurred £33 million of major impairment and restructuring charges, comprising restructuring charges of £26 million and an impairment charge of £7 million.

Net debt (continuing) increased to £971 million as at 30th September 2025 compared to£810 million as at 31st March 2025. Net debt to EBITDA was 2.0 times (31st March 2025:1.8 times). Free cash flow⁴ was a £4 million inflow, a significant improvement from a £165 million outflow in the first of half of 2024/25. This was driven by higher profit and improved working capital management in Clean Air and PGM Services.

Notes:

1.

Unless otherwise stated, sales and operating profit commentary refers to performance at constant exchange rates. Growth at constant rates excludes the translation impact of foreign exchange movements, with 1H 2025/26 results converted at 1H 2024/25 average rates. In 1H 2025/26, the translational impact of exchange rates on group sales and underlying operating profit (continuing) was an adverse impact of £26 million and £2 million respectively.

2.

Pro forma underlying operating profit excludes Catalyst Technologies (discontinued) and Value Businesses (divested) as shown on page 8.

3.

1H 2024/25 is restated to reflect the classification of Catalyst Technologies as a discontinued operation following the agreed sale, and the group's updated reporting segments where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.

4.

Free cash flow defined as net cash flow from operating activities (excluding disposal related costs) after net interest paid, net purchases of non-current assets and investments and the principal elements of lease payments, adjusted to reflect the classification of Catalyst Technologies as a discontinued operation.

Summary of underlying operating results from continuing operations

Unless otherwise stated, commentary refers to performance at constant FX rates¹. Percentage changes in the tables are calculated on rounded numbers.

Sales

(£ million)

Half year ended30th September

% change

% change,constant FX rates

2025

2024²

Clean Air

1,061

1,165

-9

-7

PGM Services

226

215

+5

+7

Hydrogen Technologies

23

20

+15

+15

Eliminations²

(31)

(34)

n/a

n/a

Sales (pro forma)

1,279

1,366

-6

-4

Value Businesses (divested)³

-

36

n/a

n/a

Sales (continuing)

1,279

1,402

-9

-7

Catalyst Technologies (discontinued)

272

328

-17

-16

Eliminations (discontinued)

(6)

(8)

n/a

n/a

Total sales

1,545

1,722

-10

-9

Underlying operating profit(£ million)

Half year ended30th September

% change

% change, constant FX rates

2025

2024²

Clean Air

132

121

+9

+11

PGM Services

66

51

+29

+33

Hydrogen Technologies

(18)

(26)

n/a

n/a

Corporate

(38)

(42)

n/a

n/a

Underlying operating profit (pro forma)

142

104

+37

+38

Value Businesses (divested)³

-

2

n/a

n/a

Underlying operating profit (continuing)

142

106

+34

+36

Catalyst Technologies (discontinued)

20

50

-60

-60

Total underlying operating profit

162

156

+4

+5

Reconciliation of underlying operating profitto operating profit(£ million)

Half year ended30th September

2025

2024²

Underlying operating profit (continuing)

142

106

Gain on significant legal proceedings⁴

8

-

Major impairment and restructuring charges⁴

(33)

(63)

Profit on disposal of businesses⁴

-

484

Operating profit

117

527

Notes:

1.

Growth at constant rates excludes the translation impact of foreign exchange movements, with 1H 2025/26 results converted at 1H 2024/25 average rates. In 1H 2025/26, the translational impact of exchange rates on group sales and underlying operating profit (continuing) was an adverse impact of £26 million and £2 million respectively.

2.

1H 2024/25 is restated to reflect the classification of Catalyst Technologies as a discontinued operation following the agreed sale, and the group's updated reporting segments where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.

3.

Includes Battery Materials, Battery Systems and Medical Device Components which are all now divested.

4.

For further detail on these items please see page 16.

2024/25 underlying operating results on a pro forma basis

Subject to completion of the Catalyst Technologies sale, below we have provided 2024/25 sales and underlying operating profit excluding Catalyst Technologies (discontinued) and Value Businesses (divested).

Sales

(£ million)

Year ended 31st March 2025

1H

2H

FY

Clean Air

1,165

1,154

2,319

PGM Services¹

215

266

481

Hydrogen Technologies

20

40

60

Eliminations¹

(34)

(32)

(66)

Sales (pro forma)

1,366

1,428

2,794

Catalyst Technologies (discontinued)¹,²

328

324

652

Eliminations (discontinued)³

(8)

(5)

(13)

Value Businesses (divested)⁴

36

1

37

Total sales

1,722

1,748

3,470

Underlying operating profit(£ million)

Year ended 31st March 2025

1H

2H

FY

Clean Air

121

152

273

PGM Services¹

51

100

151

Hydrogen Technologies

(26)

(13)

(39)

Corporate

(42)

(45)

(87)

Underlying operating profit (pro forma)

104

194

298

Catalyst Technologies (discontinued)¹,²

50

40

90

Value Businesses (divested)⁴

2

(1)

1

Total underlying operating profit

156

233

389

Notes:

1.

Restated to reflect the group's updated reporting segments following the agreed sale of Catalyst Technologies, where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.

2.

Catalyst Technologies is classified as a discontinued operation for the financial year 2025/26.

3.

Relates to Catalyst Technologies.

4.

Value Businesses includes Battery Materials, Battery Systems and Medical Device Components which are all now divested.

Good profit and margin growth despite a challenging market

·

Sales were down 7%. This mainly reflected a decline in global vehicle production driven by European light duty diesel and North American heavy duty diesel. We also experienced market share losses in light duty gasoline, largely due to historic platform losses

·

Underlying operating profit grew 11% and margin expanded 200 basis points to 12.4%, driven by efficiency benefits

Half year ended30th September

% change

% change, constant FX rates

2025

2024

£ million

£ million

Sales

Light duty diesel

486

530

-8

-7

Light duty gasoline

202

244

-17

-15

Heavy duty diesel

373

391

-5

-2

Total sales

1,061

1,165

-9

-7

Underlying operating profit

132

121

+9

+11

Underlying operating profit margin

12.4%

10.4%

EBITDA margin

15.6%

13.6%

Reported operating profit

119

101

Clean Air provides catalysts for emission control after-treatment systems used in light and heavy duty vehicles powered by internal combustion engines.

Market commentary

In the half, global vehicle production (ICE) declined in both light duty and heavy duty. In light duty, there were modest declines across all key regions. European and North American production was impacted by tariff uncertainty, and there was further battery electric vehicle penetration in Europe and China.

In heavy duty, ICE vehicle production grew well in Europe, whilst Asia was flat and North America saw a material decline. In Europe growth reflected cyclical recovery, whilst in Asia, growth in India was offset by a decline in China. In North America, both Class 8 andClass 4 to 7 truck production declined driven by the effect of tariffs and uncertainty around the timing and final requirements of EPA27 (Environmental Protection Agency) emissions legislation. Recovery of the Class 8 cycle is expected to drive higher production in 2026.

Performance commentary

Sales declined 7%. This mainly reflected a decline in global vehicle production driven by European light duty diesel and North American heavy duty diesel.

Sales

Light duty diesel

In light duty diesel, sales declined 7%, underperforming a global market which saw a modest decline. In Europe, whilst sales decreased, we outperformed the market, reflecting strong performance from our largest customer. North American sales were down materially, underperforming a slightly declining market mainly due to a weaker mix. However, we saw good sales growth in Asia, due to benefits from commercial excellence as well as strong customer performance in China.

Light duty gasoline

Light duty gasoline sales were down 15%, underperforming a global market which declined slightly. By region, we saw declines in Europe and Asia, whilst sales in the Americas were broadly flat.

In Europe, we were mainly impacted by market share losses due to platform losses several years ago. In Asia, our sales decline reflected weaker platform mix in China, alongside the underperformance and phase out of some customer platforms across the rest of Asia. In the Americas, sales were broadly flat and in line with the market.

Heavy duty diesel

In heavy duty diesel, sales declined 2%, broadly in line with the global market. We experienced a decline in sales in North America, which was partly offset by good growth in Europe and Asia.

In North America, sales performance mainly reflected the decline in market production. We also experienced some customer underperformance and a weaker mix. In Europe, we outperformed a growing market mainly due to market share gains. Growth in Asia was largely driven by India, due to improved mix and the ramp up of an off-road platform.

Underlying operating profit

Underlying operating profit grew 11% and operating margin expanded 200 basis points to 12.4%, driven by efficiency benefits. These included reduced R&D and SG&A overheads in the business, as well as benefits from operational excellence and footprint consolidation.

Good sales and profit growth supported by higher PGM prices

·

Sales were up 7% reflecting good growth in our refining and trading businesses as we benefitted from higher PGM prices and increased trading activity

·

Underlying operating profit grew 33%, reflecting a £10 million benefit from higher average PGM prices, strong performance in our PGM trading business and efficiency benefits

Half year ended30th September

% change

% change, constant FX rates

2025

2024¹

£ million

£ million

Sales

PGM Services

226

215

+5

+7

Underlying operating profit

66

51

+29

+33

Underlying operating profit margin

29.2%

23.7%

EBITDA margin

35.4%

29.8%

Reported operating profit

63

26

PGM Services is the world's largest recycler of platinum group metals (PGMs). This business is enabling the energy transition through developing new PGM applications and providing circular solutions. PGM Services provides a strategic service to the group, supporting our other businesses with security of metal supply and the manufacture of value-add PGM products.

Performance commentary

Sales

In the half, sales were up 7% reflecting good growth in our refining and trading businesses as we benefitted from higher PGM prices and increased trading activity. Average platinum, palladium and rhodium prices increased 27%, 11% and 30% respectively compared to the first half of 2024/25.

In our refining business sales grew well driven by higher PGM prices, although volumes were slightly down year-on-year. We saw a decline in primary volumes, which was partly offset by increased secondary (recycled) volumes due to higher industrial feeds. As we continued our asset renewal programme, we saw a small benefit from higher metal recoveries in the first half, although we continue to expect lower metal recoveries for the full year.

In our products business, sales slightly declined year-on-year, mainly driven by lower demand from pharmaceutical customers.

Underlying operating profit

Underlying operating profit grew 33% reflecting a £10 million benefit from higher average PGM prices in our refining business, strong performance in our trading business, and continued efficiency benefits including operational enhancements and streamlining processes.

Notes:

1.

1H 2024/25 is restated to reflect the group's updated reporting segments following the agreed sale of Catalyst Technologies, where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.

Smaller operating loss benefitting from cost savings

·

Sales grew 15% driven by revenue recognised due to changes to volume commitments from customers in fuel cells, and higher electrolyser volumes

·

Smaller operating loss of £18 million, largely reflecting benefits from cost control actions taken in 2024/25. On track to achieve breakeven by the end of 2025/26

Half year ended30th September

% change

% change, constant FX rates

2025

2024

£ million

£ million

Sales

Hydrogen Technologies

23

20

+15

+15

Underlying operating loss

(18)

(26)

n/a

n/a

Underlying operating loss margin

n/a

n/a

Reported operating loss

(18)

(26)

In Hydrogen Technologies, we provide performance-defining components across the value chain for fuel cells and electrolysers, including catalyst coated membranes (CCMs).

Performance commentary

Sales

Sales were up 15%, driven by both fuel cells and electrolysers. In fuel cells, sales benefitted from revenue recognised due to changes to volume commitments from customers. Electrolysers sales grew strongly, albeit from a small base, driven by increased demand from our strategic partners.

In the second half we expect to recognise further revenue due to changes to volume commitments from customers, in comparison with the first half.

Underlying operating loss

Underlying operating loss was £18 million, a material improvement compared to a£26 million loss in the prior period. This largely reflected benefits from cost control actions taken in 2024/25 as we restructured the business and reduced headcount.

We continue to expect Hydrogen Technologies to reach operating profit breakeven by the end of 2025/26 and be cash flow positive in 2026/27¹.

Corporate

Corporate costs were £38 million, a decrease of £4 million from the prior period, largely reflecting lower IT and R&D costs.

Notes:

1.

Cash flow defined as underlying operating profit plus depreciation and amortisation (EBITDA), less capital expenditure and net working capital movements. 

Performance impacted by weaker demand in key end markets

·

Sales declined 16%, largely reflecting a weak market with reduced demand for first fill catalysts, and the timing of licence income against a strong prior period

·

Underlying operating profit down 60% as a result of lower sales and weaker mix

·

Sale to Honeywell expected to complete by the first half of calendar year 2026

Half year ended30th September

% change

% change, constant FX rates

2025

2024¹

£ million

£ million

Sales

Catalysts

233

268

-13

-12

Licensing

39

60

-35

-35

Total sales

272

328

-17

-16

Underlying operating profit

20

50

-60

-60

Underlying operating profit margin

7.4%

15.2%

EBITDA margin

9.2%

19.5%

Reported operating profit

2

48

Catalyst Technologies targets high growth, high return opportunities in fuels and chemical value chains. We have leading positions in syngas - methanol, ammonia, hydrogen and formaldehyde - and a strong sustainable technologies portfolio. Our revenue streams are licensing process technology and supplying catalysts.

Performance commentary

Sales

Sales declined 16% reflecting lower sales in both Catalysts - which represents the majority of sales - and Licensing.

Catalysts: sales driven by lower first fills

Catalysts sales were down 12%, largely driven by first fills. First fill volumes declined materially against a strong prior period in which several new plants came onstream in China, including one of the world's largest methanol plants.

In refills, sales were down slightly. We saw lower formaldehyde sales due to weak end markets, particularly in China, alongside lower methanol sales and a weaker performance in additives. This was partly offset by higher sales relating to synthetic natural gas.

Licensing: performance reflects timing of licence wins in core technologies

Licensing sales - which are lumpy in nature - declined 35% year-on-year, largely reflecting lower sales from our existing core technology portfolio in China, against a strong prior period. In sustainable technologies, whilst we saw lower sales from low carbon hydrogen projects, this was partly offset by increased engineering income from sustainable methanol projects where we have a good pipeline.

Notes:

1.

1H 2024/25 is restated to reflect the group's updated reporting segments following the agreed sale of Catalyst Technologies, where a small business outside of the sale perimeter has moved from Catalyst Technologies to PGM Services.

Demand for sustainable technologies remains strong, and we continue to invest in R&D to support the development of the business. We won an additional two large scale projects in our sustainable technologies portfolio in the half, highlighting the good medium-term growth opportunity in Catalyst Technologies.

·

DG Fuels' third sustainable aviation fuel facility - located in Minnesota, US

·

USA BioEnergy's Bon Weir sustainable aviation fuel plant in Texas, US

Underlying operating profit

Underlying operating profit was down 60% as a result of lower sales and weaker mix reflecting the decline in Licensing sales which are higher margin.

Financial review - continuing operations

Research and development (R&D)

R&D spend (excluding Catalyst Technologies) was £69 million in the half, representing c.5% of sales excluding precious metals. This was down from £82 million in the prior period, largely driven by reduced R&D spend in Clean Air and Hydrogen Technologies.

Foreign exchange

The calculation of growth at constant rates excludes the impact of foreign exchange movements arising from the translation of overseas subsidiaries' profit into sterling. The group does not hedge the impact of translation effects on the income statement. The principal overseas currencies, which represented 85% of the non-sterling denominated underlying operating profit in the half year ended 30th September 2025, were:

Share of 1H 2025/26non-sterling denominatedunderlying operating profit

Average exchange rate

Half year ended30th September

% change

2025

2024

US dollar

13%

1.34

1.28

+5

Euro

54%

1.17

1.18

-1

Indian rupee

8%

116.11

107.20

+8

Chinese renminbi

10%

9.66

9.23

+5

For the half, the impact of exchange rates decreased sales by £26 million and underlying operating profit by £2 million.

If exchange rates as at 11th November 2025 (£:US$ 1.32, £:€ 1.14, £:INR 116.55,£:RMB 9.38) are maintained throughout the remainder of the year ending 31st March 2026, foreign currency translation will have a limited effect on underlying operating profit. A one cent change in the average US dollar rate, a one cent change in the average Euro rate, a one rupee change in the average Indian rupee rate, and a ten fen change in the average Chinese renminbi rate would each impact operating profit by approximately £0.5 million, £1.1 million, £0.2 million and £0.1 million, respectively.

Items outside underlying operating profit

Non-underlying income / (charge)

Half year ended30th September

2025

2024

£ million

£ million

Gain on significant legal proceedings

8

-

Major impairment and restructuring charges

(33)

(63)

Profit on disposal of businesses

-

484

Total

(25)

421

During the period, the group settled an insurance litigation and received proceeds of£8 million.

There was a charge of £33 million relating to major impairment and restructuring costs, comprising £26 million of restructuring costs and an impairment charge of £7 million. The impairment charge relates to the consolidation of our manufacturing footprint in Clean Air. The restructuring costs related to rightsizing the group and Clean Air's ongoing footprint consolidation, as well as a one-off termination cost for a US pension scheme.

Finance charges

Net finance charges in the period amounted to £32 million, up from £23 million in the prior period. The increase of £9 million largely reflects the absence of non-recurring benefits recognised in the prior period.

Taxation

The tax charge on underlying profit before tax for the half year ended 30th September 2025 was £24 million, an effective underlying tax rate of 21.8%, compared with 20.5% in the first half of 2024/25.

The effective tax rate on reported profit for the half year ended 30th September 2025 was 119%. This represents a tax charge of £102 million, compared with £58 million in the first half of 2024/25. The increase largely reflects the impact of an £84 million deferred tax asset de-recognition as a result of the agreed divestment of Catalyst Technologies.

We expect the effective tax rate on underlying profit for the year ending 31st March 2026 to be around 22%.

Post-employment benefits

IFRS - accounting basis

At 30th September 2025, the group's net post-employment defined benefit position, was a surplus of £201 million. The cost of providing post-employment defined benefits in the period was £15 million, up from £12 million in the prior period, driven by a one-off termination cost in the US.

Capital expenditure

Capital expenditure (excluding Catalyst Technologies) was £94 million¹ in the half, 1.3 times depreciation and amortisation (1H 2024/25: £134 million, 1.7 times depreciation and amortisation). A key project in the period was investment in our new world-class PGM refinery.

Balance sheet

Net debt as at 30th September 2025 was £971 million, an increase from £810 million at 31st March 2025 and £799 million at 30th September 2024. The group's net debt to EBITDA was 2.0 times (31st March 2025: 1.8 times, 30th September 2024: 1.7 times).

We use short-term metal leases as part of our mix of funding for working capital, which are outside the scope of IFRS 16. Precious metal leases amounted to £279 million as at30th September 2025 (31st March 2025: £202 million, 30th September 2024: £197 million). 

Notes:

1.

Cash outflow of £129 million in the period relating to capital expenditure (continuing basis). Difference reflects movements in capital accruals.

Free cash flow and working capital

Free cash flow¹ was a £4 million inflow compared to a £165 million outflow in the first half of 2024/25. This significant improvement year-on-year was driven by higher operating profit and improved working capital management in Clean Air and PGM Services.

Excluding precious metal, average working capital days (excluding Catalyst Technologies) to 30th September 2025 increased to 59 days compared to 51 days to 30th September 2024.

Going concern

The group maintains a healthy balance sheet with around £1.5 billion of available cash and undrawn committed facilities. Cash generation was positive during the period with a free cash inflow¹ of £4 million. Net debt at 30th September 2025 was £971 million. Net debt to underlying EBITDA was 2.0 times.

For assessing going concern, the base case scenarios were stress tested to a severe but plausible downside case which assumes lower demand across our markets to account for further disruptions and recession.

Additionally, the group considered scenarios including the impact from metal price volatility, delays in capital projects and delivery of cost savings, slow down of operations in China and an additional impact of US tariffs. We have also considered the impact of a refinery shutdown and other manufacturing plant shutdowns for a prolonged period. In all scenarios, the group has sufficient headroom against committed facilities and key financial covenants are not in breach during the going concern period.

Having assessed various scenario forecasts, the directors therefore reasonably expect no significant uncertainties about the group's ability to operate for at least fifteen months from the approval date of these half year accounts, supporting a going concern basis.

Notes:

1.

Free cash flow defined as net cash flow from operating activities (excluding disposal related costs) after net interest paid, net purchases of non-current assets and investments and the principal elements of lease payments, adjusted to reflect the classification of Catalyst Technologies as a discontinued operation.

Risks and uncertainties

JM's principal risk landscape continues to be reviewed and updated to reflect our evolving strategy and the challenges that come from operating within the current global environment and economic climate. JM is committed to improving its risk management approach and insights used to support various business decisions. The group's principal risks are listed below and remain largely as disclosed in our 2025 Annual Report.

1. Cyber-attack/IT failure - Risks to our information technology and operational technology, including failure to adapt to evolving business needs, system disruptions or major cyber security incidents. These issues could impact business continuity, data integrity and compliance.

2. Capital expenditure - JM's growth depends on the effective allocation and execution of capital expenditure. Delays, cost overruns, poor investment decisions or ineffective management could undermine expected value, leading to inefficient resource use, reduced competitiveness and failure to meet market and customer needs.

3. Operational assets - Failure of one or more critical operational assets could disrupt JM's supply chains, performance and reputation. This risk includes ageing infrastructure as well as the growing impact of climate change, such as extreme weather events and natural disasters.

4. Security of metal - JM faces security risks due to the high value of its products, site locations and supply chain dependencies. These risks include internal theft, organised crime and challenges in metal reconciliation, which vary across different parts of the business.

5. Supply chain resilience - JM relies on a global network of suppliers for key materials and services, some of which are highly specialised with limited alternative sources. Emerging industries like hydrogen and sustainable aviation fuel have immature supply chains for raw materials, making them particularly vulnerable to disruptions.

6. Geopolitical/Economic - JM's global footprint exposes the business to potential disruptions from geopolitical and macroeconomic events, including conflicts, trade disputes, sanctions, pandemics, financial crises and economic instability in key markets.

7. Innovation - A failure to develop competitive solutions, such as products, licensing and technical services, that align with evolving customer needs and market trends. This includes challenges in identifying customer expectations, translating them into effective R&D and scaling new technologies for industrial use.

8. Talent, culture and engagement - A low-performing organisation characterised by an insufficiently engaged and inclusive workforce, or a misalignment of skills and talent, would impact our ability to execute our strategy successfully.

9. Market factors - JM may not accurately predict changes in customer demand, regulation, or market trends, particularly as industries move away from fossil fuels. There is also a risk of missing new opportunities or responding to change too slowly or quickly.

10. EHS - A major work-related EHS (Environmental, Health and Safety) incident, such as a fire, explosion or toxic gas release, could result from process safety failures or regulatory non-compliance, threatening JM's operations, product portfolios and reputation.

11. Implementation of cash-focused business model - JM is pivoting towards acash-focused business model, underpinned by rigorous cost control, improved working capital management, and disciplined capital allocation. Failure to successfully execute these programmes could impact the delivery of higher cash generation and enhanced shareholder returns.

Responsibility statement of the Directors in respect of the half yearly report

The half yearly report is the responsibility of the directors. Each of the directors as at the date of this responsibility statement, whose names and functions are set out below, confirms that to the best of their knowledge:

·

the condensed consolidated accounts have been prepared in accordance with UK adopted International Accounting Standard (IAS) 34 - 'Interim Financial Reporting'; and

·

the interim management report included in the Half-Yearly Report includes a fair review of the information required by:

a)

DTR 4.2.7R of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated accounts; and a description of the principal risks and uncertainties for the remaining six months of the financial year; and 

b)

DTR 4.2.8R of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the company during that period; and any changes in the related party transactions described in the last annual report that could do so. 

The names and functions of the directors of Johnson Matthey Plc are as follows: 

Andrew Cosslett

Chair of the Board and of the Nomination Committee

Liam Condon

Chief Executive Officer

Richard Pike

Chief Financial Officer and Chief Executive of PGM Services

Barbara Jeremiah

Senior Independent Non-Executive Director and Chair of the Investment Committee

Rita Forst

Non-Executive Director and Chair of the Societal Value Committee

Xiaozhi Liu

Non-Executive Director

Sinead Lynch

Non-Executive Director

John O'Higgins

Non-Executive Director and Chair of the Remuneration Committee

Doug Webb

Non-Executive Director and Chair of the Audit Committee

The responsibility statement was approved by the Board of Directors on 19th November 2025 and is signed on its behalf by: 

Andrew Cosslett

Chair

Six months ended

30.9.25

30.9.24

Notes

£ million 

£ million*

Revenue

2, 3

5,353

5,309

Cost of sales

(5,041)

(5,010)

Gross profit

312

299

Distribution costs

(24)

(28)

Administrative expenses

(146)

(165)

Profit on disposal of businesses

4

-

484

Gain on significant legal proceedings

4

8

-

Major impairment and restructuring charges

4

(33)

(63)

Operating profit

4

117

527

Finance costs

(82)

(73)

Investment income

50

50

Share of profits of associates

1

2

Profit before tax from continuing operations

86

506

Tax expense

5

(102)

(58)

(Loss) / profit for the period from continuing operations

(16)

448

(Loss) / profit after tax from discontinued operations

11

(2)

36

(Loss) / profit for the period

(18)

484

pence 

pence 

(Loss) / earnings per ordinary share

Basic 

6

(10.7)

266.8

Diluted

6

(10.7)

266.4

pence 

pence 

(Loss) / earnings per ordinary share from continuing operations

Basic 

6

(9.5)

247.0

Diluted

6

(9.5)

246.6

* Restated to reflect classification of the Catalyst Technologies segment as discontinued operations (see note 11).

Six months ended

30.9.25 

30.9.24

Notes

£ million 

£ million*

(Loss) / profit for the period

(18)

484

Other comprehensive (expense) / income

Items that will not be reclassified to the income statement in subsequent years

Remeasurements of post-employment benefit assets and liabilities

12

(11)

21

Fair value losses on equity investments

(2)

(1)

Tax on items that will not be reclassified to the income statement

-

(4)

Total items that will not be reclassified to the income statement

(13)

16

Items that may be reclassified to the income statement:

Exchange differences on translation of foreign operations

(23)

(108)

Exchange differences on translation of discontinued operations

11

(8)

(16)

Amounts charged to hedging reserve

(33)

(16)

Fair value (losses) / gains on net investment hedges

(10)

22

Tax on items that may be reclassified to the income statement

(1)

4

Total items that may be reclassified to the income statement (in subsequent years)

(75)

(114)

Other comprehensive expense for the period

(88)

(98)

Total comprehensive (expense) / income for the period

(106)

386

Total comprehensive (expense) / income for the period arises from:

Continuing operations

(95)

363

Discontinued operations

11

(11)

23

(106)

386

* Restated to reflect classification of the Catalyst Technologies segment as discontinued operations (see note 11).

30.9.25 

31.3.25 

Notes

£ million 

£ million 

Assets

Non-current assets

Property, plant and equipment

8

1,162

1,411

Right-of-use assets

34

53

Goodwill

87

347

Other intangible assets

9

228

288

Investments in associates

10

70

71

Investments at fair value through other comprehensive income

35

38

Other receivables

101

98

Derivative financial instruments

-

4

Deferred tax assets

56

135

Post-employment benefit net assets

12

228

238

Total non-current assets

2,001

2,683

Current assets

Inventories

857

1,011

Taxation recoverable

42

15

Trade and other receivables

1,353

1,532

Financial assets held at amortised cost

11

-

Cash and cash equivalents

17

536

898

Derivative financial instruments

28

55

Assets classified as held for sale

11

1,004

-

Total current assets

3,831

3,511

Total assets

5,832

6,194

Liabilities

Current liabilities

Trade and other payables

(1,824)

(1,984)

Lease liabilities

17

(3)

(6)

Taxation liabilities

(60)

(45)

Cash and cash equivalents ─ bank overdrafts

17

(11)

(24)

Borrowings

17

(134)

(333)

Derivative financial instruments

(19)

(14)

Provisions

(60)

(69)

Liabilities classified as held for sale

11

(209)

-

Total current liabilities

(2,320)

(2,475)

Non-current liabilities

Borrowings

17

(1,318)

(1,301)

Lease liabilities

17

(26)

(40)

Deferred tax liabilities

(3)

(4)

Employee benefit obligations

12

(29)

(38)

Derivative financial instruments