Full Year 2025 Johnson Matthey PLC Earnings Call Transcript
Key Points
- Johnson Matthey PLC (JMPLF) announced the sale of its Catalyst Technologies business to Honeywell for GBP1.8 billion, a significant valuation compared to previous offers.
- The company has significantly improved its Clean Air business, increasing margins from 8% to nearly 12%, with expectations to reach 16-18% by 2027/28.
- Johnson Matthey PLC (JMPLF) plans to return GBP1.4 billion to shareholders from the Catalyst Technologies sale proceeds.
- The new world-class refinery for Platinum Group Metals (PGM) is on track, expected to enhance cash generation and operational efficiency.
- The company has committed to delivering GBP200 million in cash returns to shareholders annually from 2026/27 onwards, supported by strong free cash flow projections.
- The transition to the new PGM refinery will incur additional costs and lower metal recoveries during the commissioning phase, impacting short-term profitability.
- The hydrogen market has underperformed expectations, leading to asset impairments and a delay in profitability.
- Clean Air sales have been affected by a decline in global automotive production, impacting revenue growth.
- The company faces challenges in reducing central costs and stranded costs following the sale of Catalyst Technologies.
- Johnson Matthey PLC (JMPLF) has experienced a high level of one-off items impacting financial results, including restructuring costs and asset write-downs.
Well, good morning, everyone, and thank you for coming on to the LSC this morning. I'm Martin Dunwoodie, Director of Investor Relations at Johnson Matthey. And thank you, as I say, for coming along to everyone in the room and those on the webcast.
A little bit of admin before we start, could everyone turn off mobile devices or on to silence, please. We will follow the usual format this morning. A lot of news, obviously, but usual format, presentation followed by Q&A, both from the room and the webcast. Very pleased to welcome today our CEO, Liam Condon; and our new CFO, Richard Pike. I will point you to the cautionary statement ahead of the presentation.
And then the agenda today, we will go through -- Liam will take you through an introduction, then we'll run through the financial results with Richard, before Liam takes us through a strategy update, obviously, given the news this morning. And then what that means in terms of financial outcomes from Richard, before Liam wraps up with a conclusion, and then we'll come back to
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