Johnson Matthey (LSE:JMAT) announced on Thursday that it anticipates its full-year underlying operating profit will land toward the upper end of its previously guided growth range. The improved outlook is supported by a £10 million tailwind from stronger platinum group metal (PGM) prices and favorable foreign exchange movements.
Excluding the Catalyst Technologies and Value Businesses segments, the company now expects underlying operating profit growth to reach the top end of its original mid-single-digit forecast, up from the earlier projection of around 2% growth. Management highlighted that performance will be weighted toward the second half of the fiscal year.
The company also expects free cash flow (FCF) to strengthen meaningfully. In the first half of fiscal 2026, FCF is projected to improve sharply year over year, reversing the £169 million outflow recorded in the prior-year period. For the full year, free cash flow is anticipated to rise materially from the £59 million inflow reported in fiscal 2025.
The Catalyst Technologies segment, which is in the process of being wound down, is expected to report a significantly lower underlying operating profit in the first half compared to the previous year, primarily due to softer demand for catalysts and delayed licensing wins.
Overall, Johnson Matthey expects group performance to be notably stronger in the second half of the fiscal year, supported by the positive pricing environment and operational execution.
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