High growth aerospace, defence and energy markets set up Morgan Advanced Materials for outperformance

As global industrial megatrends accelerate Morgan Advanced Materials is emerging as a critical enabler of the technologies powering the next decade. Our 2025 performance and strategy showcase a company positioned squarely at the centre of long‑term demand cycles in mission critical materials.

For Morgan, market exposure is both diversified and attractive: 20.7% aerospace & defence, 6.9% energy, 6.8% semiconductors, and 41.6% industrial. These segments increasingly rely on advanced ceramics, carbon, and insulation systems, fields where Morgan holds global leadership positions and decades of application expertise.

Aerospace and defence markets were standout performers in 2025, driven by strong engine demand, rising global defence spending and ongoing modernisation programmes. Our Technical Ceramics division saw robust momentum, delivering £341.6 million in revenue and margins of 11.5%, primarily through ceramic cores used in high-efficiency jet engines. We are expanding capacity to meet increasing aircraft deliveries and next generation engine ramp‑ups.

Defence markets are also becoming increasingly important. Our Performance Carbon division is deploying its expertise into body armour, night‑vision systems and other defence subsystems, with high margin applications characterised by stringent performance requirements and long qualification cycles. Multi‑year contracts underpin planned investments in incremental defence capacity during 2026.

Across energy intensive industrial sectors our products reduce emissions and energy consumption, helping customers meet tightening environmental regulations. Our Superwool® thermal insulation and microporous solutions are increasingly sought after as industries decarbonise.

This strength in structurally growing sectors provides resilience even when specific end markets soften. While semiconductor demand dipped in 2025 (due to cyclical destocking), we remain well positioned in wafer fabrication consumables, where barriers to entry are high and Western supply chains are investing heavily.

As recovery takes hold in semiconductors and global manufacturing, these core markets provide a robust platform for above GDP organic growth. Our strategy explicitly targets outperforming global economic growth through deeper value chain penetration and upgraded positions in select markets.

With a clear roadmap, high‑growth sector exposure and unique materials science capabilities, Morgan Advanced Materials offers investors access to several of the world’s most attractive industrial megatrends.