Morgan Advanced Materials PLC

Latest Results (21.01.2026):

Morgan Advanced Materials PLC — Interim results for the first half (H1) of 2025: revenue was £522.6m, down 5.8% on an organic constant currency (OCC) basis versus H1 2024; adjusted operating profit was £58.0m (adjusted operating margin 11.1% vs 12.5% a year earlier); adjusted EPS was 10.8p. Free cash flow improved to £1.2m, net debt (ex. leases) closed at £249.1m (net debt/EBITDA 1.7x). Management cites difficult but stabilising end markets, continued simplification benefits and semiconductor investment nearing completion.

Headline results

Revenue: £522.6m (H1 2025) down 5.8% OCC; Adjusted operating profit: £58.0m; Adjusted EPS: 10.8p; Adjusted operating margin: 11.1% (H1 2024: 12.5%).

Profit drivers and margin

Profitability was hit by weaker volumes and adverse mix (notably semiconductor cyclical weakness), partly offset by efficiency and simplification benefits. FX headwinds remain and management expects H2 pressures to persist.

Cash flow and balance sheet

Free cash flow improved to £1.2m (H1 2025) from -£7.9m (H1 2024). Closing net debt (ex. leases) was £249.1m, with net debt/EBITDA of 1.7x (up from 1.3x).

Segment performance

Thermal Products: £195.5m (OCC -8.0%), adj. op profit £15.7m (8.0% margin). Performance Carbon: £154.1m (OCC -11.2%), adj. op profit £25.1m (16.3% margin). Technical Ceramics: £173.0m (OCC +2.6%), adj. op profit £20.2m (11.7% margin).

Simplification & one‑off items

Simplification programme delivering run‑rate benefits (annual run‑rate ~£24m in 2025, rising to £27m in 2026). H1 specific adjusting items totalled £16.3m (including simplification costs and ERP work).

Capital expenditure & semiconductor investment

H1 net capex £40.5m. 2025 guidance expects total capex c. £70m as semiconductor investment is substantially complete; scope retained to re‑invest as demand recovers. Management expects to commission new semiconductor capacity in 2026 with ~£7m of one‑off start‑up costs.

Guidance and outlook

Full‑year revenue guidance unchanged: organic OCC decline expected at a mid single‑digit percentage. Profitability expected around the lower end of consensus due to weak markets, mix and FX. Free cash flow should normalise in H2 and leverage is expected to be ~1.5x (net debt/EBITDA excl. leases) by year‑end.