Morgan Advanced Materials
Full year 2025 financial results
We issued our 2025 full year financial results to the market today.
"The business has delivered a resilient performance against a backdrop of challenging markets. Demand in our end-markets has now broadly stabilised and, on an organic constant-currency basis*, revenue has remained stable since the second half of 2024."
Damien Caby
CEO
2025 financial highlights:
- Headline revenue: £1,030m
- Group adjusted operating profit2,3: £99.1m
- Adjusted EPS4: 15.9p
2 ‘Headline’ metrics which include the results earned by MMS up to the completion date of the disposal.
4 Adjusted EPS is calculated using adjusted operating profit, with further adjustments to add back net financing costs, income tax expense and non-controlling interests, divided by the weighted average number of ordinary shares during the period
Highlights
- Organic constant-currency* revenue decline of 3.3% reflects end-market weakness, notably in Semiconductor and European Industrial markets; stabilisation in these markets during H2 2025
- Business simplification programme progressing well; additional £16 million of savings during 2025, as expected, compared to our 2023 baseline
- Group headline adjusted operating profit* margin of 9.6%; benefits from efficiency and business simplification partly offset the impact of weaker markets
- Headline Net debt*/EBITDA* of 1.8 times reflects Semiconductor and simplification programme investments; leverage to return towards our framework targets during 2026 upon realisation of MMS disposal proceeds
- Good progress against our strategy; first major site turnaround plan initiated, group led procurement set to deliver early wins in 2026, ERP roll-out to kick off in Q2, MMS disposal completed
- Strategic review of Thermal Products division formally underway; updates to be provided in due course
- Outlook for 2026 in-line with current market expectations
Outlook
Demand in our end-markets has broadly stabilised and our outlook for 2026 is in-line with current market expectations. We expect organic constant-currency* revenue growth of 1-2% and an adjusted operating profit* margin at or around 10%, reflecting our continued focus on efficiency and the first results of our Transform initiatives.
As previously reported, our medium-term guidance for overall capital expenditure is for around £50-£55 million per annum over the next three years.
We remain confident in achieving our medium-term financial framework.