Morgan Advanced Materials plc (LSE:MGAM) shares rose 8% after the company reported 4.9% organic constant currency sales growth for the first nine months of 2026 and indicated that full-year adjusted operating profit is expected to be towards the upper end of analysts’ forecasts.
The advanced materials manufacturer reported that revenue growth for the nine months ended 30 September 2026 was supported by demand from the Aerospace and Energy sectors, alongside continued resilience across industrial markets.
The reported growth rate excludes an £8.9 million timing benefit associated with a take-or-pay contract in the Semiconductor business.
Nine-Month Organic Sales Increase 4.9%
Morgan Advanced Materials recorded organic constant currency revenue growth of 4.9% during the first nine months of 2026.
The company said trading benefited from activity in its Aerospace and Energy end-markets, while demand across its broader industrial customer base remained resilient.
The growth figure excludes an £8.9 million benefit arising from the timing of revenue recognition under a Semiconductor take-or-pay contract.
The company did not provide an absolute revenue figure or a separate third-quarter growth rate in the update.
Full-Year Adjusted Operating Profit Expected Near Upper End of Forecasts
Morgan Advanced Materials said it now expects adjusted operating profit for 2026 to be around the upper end of the range of analysts’ expectations.
The company attributed its revised outlook to progress with strategic initiatives, operational improvements and continued trading momentum.
The update did not specify the monetary range of analysts’ forecasts or provide a revised numerical profit target.
Management indicated that the performance of its operations and progress with its strategic programme were contributing to its expectations for the full financial year.
Thermal Products Strategic Review Progresses
Morgan Advanced Materials also provided an update on its strategic review of the Thermal Products division.
The company confirmed that several potential buyers have expressed interest in the business and that it is beginning formal engagement with those parties.
A range of strategic alternatives remains under consideration, including a possible disposal of the division.
Morgan Advanced Materials emphasised that no decision has been reached regarding the future of Thermal Products.
The review forms part of the company’s assessment of its business portfolio and strategic priorities.
Shares Advance Following Trading Update
Morgan Advanced Materials shares increased approximately 8% following the announcement.
The market reaction followed the company’s nine-month sales growth figures, its updated expectations for adjusted operating profit and the latest developments in the Thermal Products strategic review.
The company has not announced a transaction involving the division, and the outcome of the review remains undetermined.
Full-Year Results Scheduled for March 2027
Morgan Advanced Materials is scheduled to publish its full-year 2026 financial results on 11 March 2027.
The results are expected to provide further details on revenue, adjusted operating profit and the company’s financial performance across its businesses.
Investors will also receive an opportunity to assess progress with the group’s strategic initiatives and any subsequent developments in the Thermal Products review.
More About Morgan Advanced Materials
Morgan Advanced Materials plc (LSE:MGAM) is a UK-based manufacturer of advanced materials and engineered products used in industrial and specialist applications. The company supplies products and technologies to sectors including aerospace, energy, semiconductors and industrial manufacturing.
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