Morgan Advanced Materials

Half year 2025 financial results

We issued our 2025 half year financial results to the market today.

“During the first half of this year, the business has delivered a resilient performance against a backdrop of challenging markets. We remain mindful of the macroeconomic environment, but we continue to believe the business is well placed to navigate through this period of global uncertainty."

Damien Caby
CEO

H1 2025 financial highlights:

Revenue: £522.6m
Group adjusted operating profit¹: £58.0
Adjusted EPS¹: 10.8p
Interi, dividend per share: 5.4p

1. Definitions of these non-GAAP measures and reconciliations to the equivalent statutory measures can be found in the ‘Glossary’ and ‘Alternative performance measures’ section at the end of this announcement. Throughout this report these non-GAAP measures are clearly identified by an asterisk (*) where they appear in text and by a footnote where they appear in tables.

We have now substantially completed our semiconductor capital investment and continue to make good progress across our business simplification initiatives.

The simplification programme is progressing well and is on track to deliver the full expected benefits of £24 million of annualised savings during 2025 and £27 million during 2026, with an unchanged cash implementation cost of £45 million.

Outlook

We are cautious about demand in a number of our end-markets as the geopolitical and economic environment remains uncertain. Our revenue guidance for the full year remains unchanged, with organic constant currency revenue expected to decline by a mid single-digit percentage level. This assumes that the market stabilisation seen in the first half of this year continues, but with no expectation of recovery in the second half. We now expect profitability to be around the bottom end of the consensus range, impacted by weak market conditions, mix effects and foreign exchange headwinds.

Our expectation is for free cash flow to normalise during the second half of the year as investment in semiconductor capacity and our simplification programme are now both nearing completion. This will assist in a return to leverage (net debt*/EBITDA excl. lease liabilities*) of 1.5 times by the end of the year.

As we look towards 2026, although we note early signs of stabilisation we remain cautious about end-market demand given the ongoing external uncertainty. We expect to commission the new semiconductor capacity during 2026 and will incur one-off startup costs of approximately £7 million as a result.

Our medium term guidance for overall capital expenditure is now around £70 million in 2025, £55 million in 2026 and £60 million in 2027.

We remain committed to our medium-term financial framework.