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Johnson Matthey says turnaround on track as cash flow jumps, portfolio shifts advance. July 16, 2026 Key points. * Johnson Matthey said its turnaround remains on track, with full-year results in line with upgraded guidance and free cash flow rising more than 160% year over year. Underlying operating profit also increased, and the company said it remains on course to meet its 2027/2028 commitments. * The company is making major portfolio changes, with the sale of Catalyst Technologies to Honeywell nearing completion after receiving final China antitrust approval. At the same time, Johnson Matthey is advancing its new PGM refinery in Royston, which is expected to be operational in 2027. * Johnson Matthey also announced a growth-focused acquisition of Cormetech, which should expand its stationary emissions-control business and create cross-selling opportunities. Management said the deal strengthens its Clean Air platform while the board plans to return GBP 200 million per year to shareholders through dividends and buybacks. * Five stocks we like better than Johnson Matthey. Johnson Matthey LON: JMAT told shareholders at its 2026 Annual General Meeting that it remains on track with its restructuring plans and medium-term commitments, while highlighting progress on cash generation, portfolio changes and new investments. Opening the meeting, Chair Andy said his first year with the company had been marked by "considerable change" as Johnson Matthey works to simplify the business, sharpen its focus, improve execution and efficiency, and generate more cash. He said the company delivered a "solid performance" in a challenging macroeconomic backdrop and met its revised operating financial commitments. The company returned GBP 129 million to shareholders during the year, Andy said. The board is proposing a final dividend of GBP 0.55 per share, bringing the total dividend for the year to GBP 0.77 per share, in line with the prior year. Profit and cash flow improve. Chief Executive Liam Condon said Johnson Matthey delivered full-year performance in line with previously upgraded guidance for 2025/2026. He said underlying operating profit rose 6% on a reported basis and was up 14%, while the Clean Air business improved margins to the mid-teens. Condon said Hydrogen Technologies achieved run-rate breakeven, and the group delivered a "very material step-up" in free cash flow, with cash generation up more than 160% year over year. He said these outcomes reflected the company's focus on costs and cash, despite challenges in its PGM refining business related to its U.K. and U.S. refineries. Condon said Johnson Matthey remains "completely on track" to deliver its 2027/2028 commitments. PGM refinery investment advances. Johnson Matthey's PGM Services business is in a transition period as the company upgrades existing assets and invests in a new platinum group metals refinery in Royston, near Cambridge, Condon said. Early-stage commissioning began in March, and the refinery remains on track to be operational in calendar 2027. Condon described the project as a "once in a lifetime" investment that is expected to improve operational efficiency and working capital management in PGM Services. He said the company has taken additional actions to keep the project on schedule, increasing capital expenditure expectations for 2026/2027. In response to a shareholder question about operational metal losses in the U.S. refinery, Chief Financial Officer Alastair Judge said the company estimates metal losses during two-year operating cycles and then reconciles them when refineries are shut down for maintenance. He said the amount of metal lost over the latest two-year period was higher than normally seen, leading to a stock loss booked at period-end. Catalyst Technologies sale nears completion. Condon said the planned sale of Catalyst Technologies to Honeywell is on track. He said Johnson Matthey had received China antitrust approval, the final outstanding antitrust approval required, and that all deal conditions had been satisfied. The company agreed with Honeywell on a completion date of the following day, Condon said. Discover more Financial news subscription Stock trading tools Cryptocurrency market updates Asked about the loss of potential synergies from selling the catalyst business, Condon said the divestment reflected Johnson Matthey's strategy to focus on areas where it is world-class and has critical mass, particularly around platinum group metals. He said Catalyst Technologies uses "hardly any" platinum group metals and is mainly based around base metals and engineering process technology, making it different from Clean Air, PGM Services and Hydrogen Technologies. Cormetech acquisition expands emissions platform. Condon also discussed Johnson Matthey's recently announced acquisition of Cormetech, which he described as the leading manufacturer of selective catalytic reduction catalysts. He said Cormetech has a significant presence in the U.S. power generation market, where demand is increasing due in part to data center growth. Condon said the acquisition is complementary to Johnson Matthey's Clean Air Solutions business across technology, customers and geographies, and will create a global leader in stationary emission control. In response to a shareholder question, he said Cormetech's products help eliminate nitrogen oxides, while Johnson Matthey offers oxidation catalysts that eliminate carbon monoxide, creating cross-selling opportunities. Condon said Cormetech also has technology in its pipeline for point-source carbon dioxide capture, though Johnson Matthey has not included that opportunity in its forecasts. Shareholders press board on returns and capital allocation. Several shareholder questions focused on Johnson Matthey's long-term share performance. Private shareholder Phil Clark cited the company's total shareholder return over 10 years and asked whether there was "any point" in being a shareholder. Andy said past investment decisions that "went the wrong way" contributed to impairments and write-offs, but said the current plan is designed to improve shareholder returns. Condon said Johnson Matthey's total shareholder return over the past five years had exceeded peers such as Umicore and BASF, but added that shareholders should "rightfully" expect more value creation going forward. Asked about defense against potential foreign takeovers, Andy said the best defense is to have a successful business with well-managed leverage and a plan that gives shareholders and stakeholders confidence. He said the board keeps plans refreshed and uses advisers to prepare for potential situations. On capital allocation, Judge said Johnson Matthey plans to return GBP 200 million per year to shareholders through a combination of dividends and share buybacks, broadly split about half and half. The board also noted changes in leadership. Andy said Barbara Jeremiah, Senior Independent Director, and John O'Higgins, Chair of the Remuneration Committee, would step down from the board at the conclusion of the meeting. About Johnson Matthey LON: JMAT. Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers' products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet's natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Johnson Matthey, you'll want to hear this. 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UK's Johnson Matthey bets on US power demand with $360 million Cormetech buy. Posted on May 28, 2026 · Last updated: May 28, 2026 Johnson Matthey bets on data centre emissions control market with Cormetech buy. Johnson Matthey's strategic acquisition of Cormetech. By Neeshita Beura and Yadarisa Shabong May 28 (Reuters) - British chemicals firm Johnson Matthey (JM) on Thursday agreed to buy Cormetech for $360 million, in a bid to tap demand for emission control tied to mushrooming U.S. data centres, even as it forecast slower profit growth for fiscal 2027. Cormetech's competitive edge in emission control. "Nobody has a competitive offering like Cormetech for primary emission control in data centres," JM CEO Liam Condon told analysts. North Carolina-based Cormetech makes technologies used to cut greenhouse gas emissions from natural gas turbines and coal-fired power plants. Data centre emissions: the growing challenge. Data centres need to control their nitrogen oxide pollution, which is Cormetech's strength, and eliminate carbon monoxide and volatile organic compounds, which is JM's mainstay, Condon said. Strategic focus and business realignment. The Cormetech deal marks Condon's first major acquisition after years of offloading assets to focus on emissions control and platinum group metals refining. Clean Air unit and market challenges. Johnson Matthey's largest unit, Clean Air, mainly makes pollution filters for internal combustion engine cars, but faces challenges as the automakers move to electric models. Financial outlook and deal impact. Expected closing and earnings contribution. The deal, expected to close in June or July, would add to Johnson Matthey's earnings from fiscal 2027. Profit forecast and contributing factors. Excluding Cormetech and the planned £1.33 billion divestment of Catalyst Technologies to Honeywell, JM expects group underlying operating profit to rise in the low- to mid-single-digit percentage for the year ending March 2027. The forecast marks a slowdown from the 14% growth it reported for fiscal 2026, partly due to loss provisions related to its U.S. refinery and higher maintenance costs linked to its UK refinery. Geopolitical risks and market performance. JM warned that heightened geopolitical uncertainty from the Middle East conflict could hurt future performance through global demand, supply chains, and inflation, although it saw no material impact in the last fiscal year. The company's shares were down marginally by 1004 GMT. Reporting credits. (Reporting by Nithyashree R B, Neeshita Beura and Yadarisa Shabong in Bengaluru; Editing by Subhranshu Sahu and Diti Pujara) Key takeaways. * JM is betting on growing U.S. power sector emissions-control demand, especially from expanding data centre activity, by acquiring Cormetech for $360 million. (cormetech.com) * The acquisition comes as JM's underlying operating profit rose £340 million in FY 2025/26, and analysts expect approximately £365 million in FY 2026/27 - implying low- to mid-single-digit growth excluding the Cormetech deal and the planned Catalyst Technologies divestment. (sahmcapital.com) * U.S. power generation is undergoing a transformation - nearly 90 % of coal capacity now features pollution controls, and demand from data centres and electrification is fuelling further need for such technologies. This aligns with Cormetech's strong proprietary position across U.S. plants. (epa.gov) References. Frequently asked questions. What is the value of Johnson Matthey's acquisition of Cormetech? Why is Johnson Matthey buying Cormetech? What are Johnson Matthey's profit expectations after the acquisition? How much profit did Johnson Matthey report for FY25/26?