Morgan Advanced Materials H2 Earnings Call Highlights

Morgan Advanced Materials (LON:MGAM) absorption said the radical delivered a “resilient performance” successful 2025 contempt challenging marketplace conditions, with extremity markets stabilizing implicit the past 18 months and aboriginal signs of betterment expected to enactment humble maturation successful 2026.

On the company’s full-year results call, CEO Damien Caby said Morgan is executing the strategy it outlined successful December, with a absorption connected improving operational effectiveness, driving stronger growth, and maximizing portfolio value. CFO Richard Armitage added that the company’s outlook for 2026 is “in enactment with existent marketplace expectations,” including integrated changeless currency (OCC) gross maturation of 1% to 2% and an adjusted operating borderline returning to “around 10%.”

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For the twelvemonth ended Dec. 31, 2025, Morgan reported header gross of £1.03 billion, down 3.3% connected an OCC basis. Armitage said gross fell 5.3% successful the archetypal fractional but was “broadly flat” year-over-year successful the 2nd half, pointing to stabilization crossed respective extremity markets.

Management attributed the radical gross diminution mostly to the semiconductor downturn. Armitage noted the £33 million OCC diminution successful radical gross “equates to the diminution successful semiconductor revenue,” underscoring what helium described arsenic “resilience and stableness of the remainder of the business.” Pricing contributed astir 3.5% for the year, portion the implied measurement diminution was astir 6.7%, helium said.

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Caby said aerospace and defence continued to turn strongly, driven by caller motor and maintenance, repair and overhaul (MRO) orders, portion healthcare declined owed to “tariff-related inventory adjustments” and little volumes successful immoderate mature lawsuit merchandise lines. In process and metals, Morgan saw mid-single-digit declines successful Europe and Asia, portion petrochemicals and chemicals were unchangeable overall, with North American maturation offsetting European weakness.

Group header adjusted operating nett was £99.1 million, down £29.3 million, for an adjusted operating borderline of 9.6%. The fig included £5.3 million of predisposal operating nett from Molten Metal Systems (MMS). Return connected invested superior was 14.1%, “slightly below” the company’s through-cycle range, Armitage said.

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Headline escaped currency travel was an inflow of £45.4 million, which absorption said reflected continued moving superior improvements. Adjusted EPS was £0.159, and the institution held its full dividend level astatine £0.122 for the year.