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LONDON - Johnson Matthey (LON:JMAT) PLC announced it has agreed to sell its Catalyst Technologies division to Honeywell International Inc (NASDAQ:HON). for an enterprise value of £1.8 billion. The transaction is on a cash and debt-free basis, valuing the business at 13.3 times its 2024/25 EBITDA.
The company plans to return £1.4 billion of the net proceeds from the sale to shareholders upon completion. This strategic move is part of Johnson Matthey’s effort to become a more focused and agile group, aiming to drive a step change in sustainable cash generation and increase annual cash returns to shareholders. From at least £130 million in 2025/26 to a minimum of £200 million for 2026/27 and beyond.
For the year ended March 31, 2025, Johnson Matthey reported results in line with expectations amidst challenging market conditions. The underlying operating profit, excluding divestments, stood at £388 million, a 6% increase at constant precious metal prices and currency rates. The reported operating profit was significantly higher at £538 million, benefiting from a £482 million profit on the disposal of businesses, offset by impairment and restructuring charges totaling £329 million.
The company’s full-year performance was bolstered by a strong second half and aligned with guidance and market forecasts. The results reflect the cumulative benefits of £200 million from the group’s transformation program initiated in the fiscal year 2021/22.
Looking ahead to the fiscal year ending March 31, 2026, Johnson Matthey expects mid-single-digit percentage growth in group underlying operating profit at constant precious metal prices and currency. This projection includes a full year of contribution from Catalyst Technologies. In the Clean Air division, modest growth in operating profit is anticipated, with a margin of 14-15%. The PGM Services division expects lower operating profit due to reduced metal recoveries, while the Hydrogen Technologies division is projected to reach operating profit breakeven by the end of the fiscal year.
The company remains cautious about the uncertain macroeconomic environment and the evolving tariff situation’s potential impact on customers. Nevertheless, Johnson Matthey is confident in its global manufacturing footprint and customer and supplier relationships to mitigate these challenges.
Regarding shareholder dividends, the board will propose a final ordinary dividend of 55.0 pence per share at the upcoming AGM. Combined with the interim dividend, this maintains the total ordinary dividend at 77.0 pence per share, consistent with the previous year.
The press release also detailed board changes, including the stepping down of Patrick Thomas as Chair and the appointment of Richard Pike as Chief Financial Officer.
This report is based on a press release statement from Johnson Matthey PLC.
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