Business
Strategy Update
Morgan Advanced Materials plc has announced a strategy update focused on sustainable growth, aiming for above-market organic revenue growth, adjusted operating profit margins of 12% by 2028 and 12-14% thereafter, and sustained ROIC of 17-20%. The company will also target leverage between 1.0x and 1.5x adjusted EBITDA, or up to 2.0x post-acquisition, while maintaining dividends at approximately 2.5x cover. A share buy-back program of £20 million will be paused to focus on balance sheet resilience. The strategy involves transforming operational effectiveness, driving stronger growth through focused areas, and maximizing the portfolio via partnerships, divestments, and bolt-on M&A. Disclaimer*
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n\nPress Release\nMorgan Advanced Materials plc\n4 December 2025\nStrategy Update\nUnlocking our potential\nMorgan Advanced Materials plc, the global leader in advanced ceramics and carbon systems for technologically demanding applications, is today holding a Strategy Update in London. Participation in the event is by invitation only for institutional analysts and investors.\nDamien Caby, Chief Executive Officer and Richard Armitage, Chief Financial Officer will host the event. They will present Morgan's strategy for sustainable growth, focussing on:\n- Transforming our operational effectiveness to turnaround underperforming sites and improve our supply chain effectiveness\n- Driving stronger growth by focusing on our right to win to enhance our value proposition, strengthening partnerships, and expanding in the right areas to gain share\n- Maximising our portfolio through partnerships, divestments and bolt-on M&A\nThey will also set out an updated financial framework and re‐iterate our capital allocation priorities:\n- Above Market Organic Revenue Growth. We expect to achieve growth in excess of GDP\n- Attractive Margins. We expect to achieve adjusted operating profit margin of 12% by 2028 with sustainable adjusted operating profit margins of between 12% and 14% beyond 2028\n- Delivering EPS Growth. Achieving sustained growth in adjusted Earnings per Share, ahead of organic revenue growth, driven by a combination of organic growth, margin accretion, shareholder returns and M&A\n- Sustaining ROIC. 17% ‐ 20% ROIC\n- Leverage Range. 1.0x to 1.5x, or up to 2.0x adjusted EBITDA post-acquisition, utilising our strong balance sheet to fund our organic growth, and then over time deploying excess capital to fund incremental M&A or additional shareholder returns as appropriate\n- Dividend Cover. Shareholder dividends maintained then growing with adjusted earnings at around 2.5x cover\nWe intend to pause our buy-back programme as part of our focus on balance sheet resilience. The programme will be paused after the completion of the second tranche, by which time we will have purchased £20m of shares.\nNo new information on current year trading will be shared at the event.\nDamien Caby, Chief Executive Officer, commented:\n\"Morgan is an exciting innovative company with distinctiv...