In This Article:
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Revenue: Sales increased by 50% in Catalyst Technologies.
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Operating Margin: Catalyst Technologies margin improved from 7% to 14%; Clean Air margin increased to almost 12% this year, with expectations to reach mid-teens by year-end.
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EBITDA: Catalyst Technologies had a GBP30 million EBITDA three years ago.
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Net Sale Proceeds: GBP1.8 billion from the sale of Catalyst Technologies, with GBP1.6 billion net proceeds after taxes and costs.
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Shareholder Returns: GBP1.4 billion to be returned to shareholders, equating to GBP8 per share based on the previous day's share price.
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Net Debt: Reduced to GBP799 million, with a leverage ratio of 1.4 times.
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Free Cash Flow: Positive free cash flow for the year, with a GBP400 million improvement from the first half to the second half.
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Dividend: Maintained at 7p, totaling GBP130 million for the year.
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Clean Air Sales Decline: Sales down 8% due to global automotive production environment.
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PGM Profitability: Nearly doubled in the second half.
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Hydrogen Losses: Halved in the second half, moving towards breakeven.
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CapEx: GBP1.25 billion spent over the last four years, with plans to reduce significantly post-refinery completion.
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Cash Returns Commitment: GBP200 million annually from '26/'27 onwards.
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Future Sales Projections: Clean Air sales expected to exceed GBP2 billion by '27/'28; PGM sales projected at GBP450 million by '27/'28.
Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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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.
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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.
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Johnson Matthey PLC (JMPLF) plans to return GBP1.4 billion to shareholders from the Catalyst Technologies sale proceeds.
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The new world-class refinery for Platinum Group Metals (PGM) is on track, expected to enhance cash generation and operational efficiency.
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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.
Negative Points
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The transition to the new PGM refinery will incur additional costs and lower metal recoveries during the commissioning phase, impacting short-term profitability.
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The hydrogen market has underperformed expectations, leading to asset impairments and a delay in profitability.
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Clean Air sales have been affected by a decline in global automotive production, impacting revenue growth.
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The company faces challenges in reducing central costs and stranded costs following the sale of Catalyst Technologies.
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Johnson Matthey PLC (JMPLF) has experienced a high level of one-off items impacting financial results, including restructuring costs and asset write-downs.