Johnson Matthey

Website: Johnson Matthey
Index: FTSE 250
EPIC: JMAT
Supersector: Chemicals
Sector: Chemicals
Subsector: Specialty Chemicals
Market Cap: £3.43B
Payout Frequency: Semi-Annual

Johnson Matthey Dividend Analysis and Summary

Declared dividend (interim)

Dividend policy and capital returns

Ordinary dividends: at least £130m for FY 2025/26
From FY 2026/27: cash returns of at least £200m p.a. (split between ordinary dividends and buybacks)
Special distribution (post-disposal): £1.15bn special dividend with a share consolidation plus a £250m buyback, funded by the sale of Catalyst Technologies
Leverage framework: target net debt/EBITDA 1.0–1.5x post-disposal

Financial support for the dividend

1H performance: underlying operating profit up +34% to £142m; pro forma +38% at constant FX
Segment trends: Clean Air margin 12.4% (+200bps); PGM Services margin 29.2%
Cash flow: free cash flow improved to +£4m (vs -£165m), with a “material step up” expected for the full year
Balance sheet: net debt £971m; net debt/underlying EBITDA 2.0x (top end of current range but ample liquidity)
Medium-term targets: sustainable free cash flow of at least £250m by 2027/28; capex to fall to ~£120m p.a. from 2027/28

Structural changes and implications for dividends

Disposal: Sale of Catalyst Technologies to Honeywell (£1.8bn EV) expected to complete by H1 calendar 2026
Capital return: £1.4bn net proceeds to shareholders (£1.15bn special dividend with share consolidation + £250m buyback)
Refinery investment: new PGM refinery commissioning in H2 FY 2025/26; operational in calendar 2027; implies near-term dual-running and depreciation before targeted margin/efficiency uplifts
Leadership and focus: streamlined leadership team and a cash-focused operating model aimed at higher free cash flow and shareholder returns

Dividend sustainability and growth outlook

Near term: The maintained interim and guidance for at least £130m ordinary dividends in FY 2025/26 look well covered by improved profitability and cash flow momentum. 1H underlying EPS comfortably covers the interim payout.
Medium term: Lower capex, working capital initiatives and Clean Air margin expansion support the targeted £250m sustainable FCF by 2027/28. Cash returns step-up to £200m p.a. from 2026/27 suggests capacity for ordinary dividend stability or growth alongside buybacks.
One-off uplift: The planned £1.15bn special dividend (with share consolidation) post-disposal will materially enhance near-term shareholder cash returns but should be viewed as non-recurring.

Key risks and flags to dividend stability

Operational/market: Auto market weakness and tariff uncertainty; lower PGM recoveries and refining volumes expected in H2; dual-running and higher depreciation around the new refinery could pressure earnings near-term.
Commodity sensitivity: PGM price volatility materially affects PGM Services (±US$100/oz ˜ ~£1m on platinum/palladium; ~£0.5m on rhodium).
Leverage: Net debt/EBITDA at 2.0x (top of current range); expected to ease post-disposal, but a watchpoint until proceeds are received.
Execution: Delivery of cost reductions, working capital improvements and refinery project timelines are critical to achieving FCF targets that underpin dividend capacity.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
05/12/2024	04/02/2025	Interim	22.00p	GBX
05/06/2025	05/08/2025	Final	55.00p	GBX

Total (Annual Dividends Per Share): 77.00p

Dividend Yield = Annual Dividends Per Share (77.00p) ÷ Share Price (2050p) = 3.76%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/11/2025	03/02/2026	Interim	22.0000p	GBX
05/06/2025	05/08/2025	Final	55.00p	GBX
05/12/2024	04/02/2025	Interim	22.00p	GBX
06/06/2024	06/08/2024	Final	55.00p	GBX
30/11/2023	06/02/2024	Interim	22.00p	GBX
08/06/2023	01/08/2023	Final	55.00p	GBX
08/12/2022	01/02/2023	Interim	22.00p	GBX
09/06/2022	02/08/2022	Final	55.00p	GBX
02/12/2021	01/02/2022	Interim	22.00p	GBX
10/06/2021	03/08/2021	Final	50.0p	GBX
26/11/2020	04/02/2021	Interim	20.0p	GBX
18/06/2020	04/08/2020	Final	31.12p	GBX
28/11/2019	04/02/2020	Interim	24.50p	GBX
06/06/2019	06/08/2019	Final	62.25p	GBX
29/11/2018	05/02/2019	Interim	23.25p	GBX
07/06/2018	07/08/2018	Final	58.25p	GBX
30/11/2017	06/02/2018	Interim	21.75p	GBX
08/06/2017	01/08/2017	Final	54.50p	GBX
24/11/2016	07/02/2017	Interim	20.50p	GBX
09/06/2016	02/08/2016	Final	52.00p	GBX
11/01/2016	02/02/2016	Special	150.00p	GBX
07/01/2016	02/02/2016	Interim	19.50p	GBX
11/06/2015	04/08/2015	Final	49.50p	GBX
27/11/2014	03/02/2015	Interim	18.50p	GBX
11/06/2014	05/08/2014	Final	45.50p	GBX
27/11/2013	04/02/2014	Interim	17.00p	GBX
12/06/2013	06/08/2013	Final	41.50p	GBX
28/11/2012	05/02/2013	Interim	15.50p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	22.000	55.000		GBX	77.000	0.000
2023	22.000	55.000		GBX	77.000	0.000
2022	22.000	55.000		GBX	77.000	6.940
2021	22.000	50.000		GBX	72.000	40.840
2020	20.000	31.120		GBX	51.120	-41.070
2019	24.500	62.250		GBX	86.750	6.440
2018	23.250	58.250		GBX	81.500	6.880
2017	21.750	54.500		GBX	76.250	-68.490
2016	40.000	52.000	150.000	GBX	242.000	388.880
2015		49.500		GBX	49.500	-22.650
2014	18.500	45.500		GBX	64.000	9.400
2013	17.000	41.500		GBX	58.500	277.410
2012	15.500			GBX	15.500

Number of Shares:

Payment	Paid	Amount
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