Johnson Matthey Plc (OTC: JMPLF) is a leading specialty chemicals and sustainable technologies group. The company is best known for its emissions control systems, catalyst technologies, and precious metals refining operations. It is currently undergoing a strategic restructuring aimed at becoming a more focused, lean, and cash-generative business.
On May 28, 2026, Johnson Matthey reported preliminary results for the financial year ended March 31, 2026. The company reported revenue of £12.57 billion, compared with £11.02 billion in the prior year. However, because Johnson Matthey’s revenue is heavily influenced by precious metal prices, sales excluding precious metals provide a clearer view of underlying business activity. On that basis, sales were £2.56 billion, down from £2.83 billion a year earlier.
Profitability showed a mixed picture. Underlying operating profit increased to £340 million, up from £299 million in the prior year. Underlying basic earnings per share rose to 128.5 pence from 110.7 pence. However, on a reported basis, the company posted a basic loss per share of 54.1 pence, compared with earnings per share of 176.0 pence in the previous year. This reflects the impact of portfolio restructuring and the difficult comparison with prior-year disposal gains.
Johnson Matthey’s Clean Air division was a strong performer. Underlying operating profit in the division increased by 12%, while the underlying operating margin expanded by 270 basis points to 14.5%. This improvement was driven by efficiency initiatives, reduced costs, operational improvements, and footprint consolidation. The company remains on track to target a Clean Air operating margin of 16% to 18% by fiscal 2028.
The company is also making major strategic moves. Johnson Matthey’s planned sale of its Catalyst Technologies business for £1.325 billion remains on track to complete by the end of August 2026. The company expects to return £1 billion of net proceeds to shareholders after completion.
At the same time, Johnson Matthey has agreed to acquire Cormetech for an enterprise value of $360 million, with a potential earn-out of up to $100 million. Cormetech manufactures selective catalytic reduction catalysts used in emissions control for stationary power generation and industrial applications. The acquisition is expected to strengthen Johnson Matthey’s Clean Air Solutions business and expand its exposure to the U.S. power generation and data center emissions control markets.
Free cash flow was another positive area. Johnson Matthey generated £168 million in free cash flow, up sharply from £64 million in the prior year. Net debt increased to £880 million from £810 million, but the improved cash generation supports management’s plan to build a more disciplined and shareholder-focused business.
For the year ending March 31, 2027, Johnson Matthey expects low- to mid-single-digit percentage growth in underlying operating profit, excluding Catalyst Technologies and Cormetech. Management expects further margin improvement in Clean Air, stable performance in PGM Services, and operating profit breakeven in Hydrogen Technologies.
Overall, Johnson Matthey’s FY2026 results show a company in transition. Reported earnings were weak, but underlying profit, cash flow, and Clean Air margins improved. The Cormetech acquisition and Catalyst Technologies sale highlight a clearer strategic direction, with the company increasingly focused on emissions control, precious metals, and cash generation.
