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Johnson Matthey (JM) is buying US catalyst and carbon capture firm Cormetech for $360m, with the sale expected to close this summer.
The UK-based chemicals and technology company said it would drive growth in stationary emissions control applications, including for the rapidly expanding .
CEO Liam Condon said it has delivered on becoming “a lean and cash generative group” with free cash flow standing at £168m ($225m) in the year ending 31 March. The acquisition followed an annual pre-tax profit of £91m ($122m).
It comes after JM’s largest shareholder, Standard Investments, urged the company to its Hydrogen Technologies business as part of broader calls for reform and a strategic overhaul to preserve shareholder returns.
“We remain mindful of the heightened geopolitical and macroeconomic uncertainty due to the Middle East conflict,” JM said in a market statement. “Whilst there was no material financial impact in 2025/26, our performance may be impacted by the future impact on global demand, supply chains and inflation.”
Its Catalyst Technologies division is in the process of being sold to Honeywell for ($1.7bn), down from £1.8bn ($2.4bn) , with the sale ‘on track’ by the end of August.
The Hydrogen Technologies segment continues to operate at a loss (undergoing headcount and cost reduction), though losses have narrowed due to tight cost controls. It forecasts ‘operating profit breakeven’ in the upcoming year.
Capital spending on green hydrogen was and operations were folded into its Clean Air business to streamline overheads and align with major customers .
If platinum group metal prices remain at their current level for the remainder of 2026/27, the firm expects a benefit of at least £25m ($33.5m) to full-year operating profit compared with the prior year.
Axel Rudolph, Chief Technical Analyst at investing and trading platform IG, said Johnson Matthey is becoming “leaner, more disciplined and increasingly focused on cash generation”.
He said the sharp rise in free cash flow and improved operating profit underline the progress being made as the group reshapes the business, while the planned sale of Catalyst Technologies and £1bn ($1.4bn) shareholder return should help maintain investor confidence.
“The acquisition of Cormetech also signals that Johnson Matthey is not simply cutting back but actively strengthening areas where it sees long-term growth potential, and guidance for further profit growth in 2027 suggests management believes the transformation still has further to run,” he said.
