Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — FY2025 Earnings Presentation
35 slides from Morgan Advanced Materials's earnings presentation, Mar 3, 2026
Slide 1: Morgan Advanced Materials Preliminary Results
Morgan Advanced Materials Preliminary Results 3 March 2026
Slide 2: Disclaimer
Disclaimer For the purposes of the following disclaimers, Due to the inherent uncertainties, including both references to this ‘document’ shall be deemed to economic and business risk factors underlying such include references to the presenters' speeches, the forward-looking information, actual resu
Slide 3: Agenda
Agenda Introduction CEO, Damien Caby Financial Performance CFO, Richard Armitage Damien Caby, CEO Strategic Execution CEO, Damien Caby Q&A Richard Armitage, CFO
Slide 4: Key messages
Key messages Resilient performance; challenging market backdrop Executing strategy at pace; 12% margin by 2028 Maximising portfolio value; strategic review of Thermal Products underway Outlook for 2026 in-line; 1-2% revenue growth 4
Slide 5: Resilient revenues; outlook stabilised
Market context Resilient revenues; outlook stabilised OCC1 revenue Revenue2 by half (3.3)% (5.9)% (1.0)% £1,030m 20243 Semi- Aerospace Healthcare Industrials 4 Other 2025 H1 2024 H2 2024 H1 2025 H2 2025 conductor & Defence Headline • Impact from well-publicised challenging conditions in the Semicond
Slide 6: Financial Performance
Financial Performance CFO | Richard Armitage
Slide 7: Resilient performance in challenging markets
Financial Performance Resilient performance in challenging markets 3% Headline OCC1 revenue Adj. earnings per share4 15.9p MMS growth (3.3)% 34% Thermal 2024 (Restated): 24.2p Products 2024: +3.7% growth (4.2)% OCC 33% Headline2 adj. operating Return on invested profit3 capital5 Technical Headline r
Slide 8: Performance Carbon: stable outside Semiconductor in 2025
Performance Carbon Stable outside Semiconductor in 2025; substantial efficiency and simplification gains support margin OCC1 revenue Revenue2 by half (8.9)% £336.7m (6.1)% (0.9)% £306.8m 2024 OCC Semi- Aerospace Rail & Energy Other 2025 Continuing H1 2024 H2 2024 H1 2025 H2 2025 conductor & Defence
Slide 9: Technical Ceramics: resilient revenue growth; efficiency gains offset weaker mix
Technical Ceramics Resilient revenue growth; efficiency gains offset weaker mix to maintain margins OCC1 revenue Revenue2 by half +3.4% (2.5)% +3.3% £341.6m £330.5m 2024 OCC Aerospace Other Semi- Healthcare 2025 Continuing H1 2024 H2 2024 H1 2025 H2 2025 & Defence conductor • Strong demand in Aerosp
Slide 10: Thermal Products: revenue shaped by regional dynamics
Thermal Products Revenue shaped by regional dynamics; volume and FX impact margin, despite strong efficiency gains OCC1 revenue Revenue2 by half (4.2)% £363.5m (9.3)% (0.1)% £348.2m 2024 OCC Europe North America Asia & RoW 2025 Continuing H1 2024 H2 2024 H1 2025 H2 2025 • Revenue was impacted by low
Slide 11: Efficiency & restructuring support Group margin
Financial Performance Efficiency & restructuring support Group margin (0.4)% +3.3% margin support through focused cost and efficiency action £99.1m (4.4)% +1.6% 9.6% 11.7% 11.3% +1.7% 2024 Adj. Operating FX 2024 Adj. Volume & Mix Net Pricing, Simplification Other 2025 Adj. Operating Profit (Reported
Slide 12: Specific adjusting items
Financial Performance Specific adjusting items Impairment relates to certain specialist assets Continuing operations; £m 2025 2024 for Semiconductor market held at a UK site; Impairment of non-financial assets (15.6) (4.2) no change to our expectations for our Semiconductor business Business simplif
Slide 13: Improvement in underlying working capital
Financial Performance Improvement in underlying working capital 2025 2024 £m £m Headline EBITDA 141.1 171.1 Net working capital 50.4 14.6 Cashflow movements Net Capital expenditure (65.9) (90.2) Net interest (18.8) (15.3) Tax Paid (26.4) (29.2) Exceptional items (22.8) (20.4) 1.4x 1.8x Lease payment
Slide 14: Capital allocation prioritises growth and returns
Financial Performance Capital allocation prioritises growth and returns 1 Strong balance sheet • Prioritise return to target leverage range through trough of cycle: 1.0x to 1.5x, or up to 2.0x post acquisition 2 Investment focused on efficiency, limited capacity needs Organic investment • • CAPEX ~1
Slide 15: Technical guidance
Financial Performance Technical guidance CAPEX returns to normalised run-rate Continuing operations; £m 2026 Guidance 2025 Reported reflecting completion of Semiconductor Translational foreign exchange investment Revenue impact n/a ~£(31)m Adjusted operating profit impact n/a ~£(7)m Leverage begins
Slide 16: Strategic Execution
Strategic Execution CEO | Damien Caby
Slide 17: Three strategic levers for margin enhancing growth
Our strategy Three strategic levers for margin enhancing growth Strategic levers 01 Transform operational • Augment operational excellence, step-up supply chain effectiveness effectiveness • Turnaround underperforming sites • Enhance and expand value proposition via strategic collaborations 02 Drive
Slide 18: Creating a clear roadmap
Roadmap Creating a clear roadmap 12-14% Beyond 10-12% • Stronger growth via deeper 2028 customer collaborations and into 9-10% subsystems • GDP+ growth with improved lead Today times and channels to market • Organic adjacencies building on selected leadership positions • Growth through exposure to •
Slide 19: We are executing our strategy at pace
Strategic execution We are executing our strategy at pace Strategic Focus 2025 2026 pillar area progress priorities Beyond… Large site turnaround 1st site initiation Implement 1st & 2nd sites Procurement Opportunity definition Build out organisation & deliver savings 01 EU SSC expansion Digital & Ba
Slide 20: We are executing our strategy at pace
Strategic execution We are executing our strategy at pace Strategic Focus 2025 2026 pillar area progress priorities Beyond… Large site turnaround 1st site initiation Implement 1st & 2nd sites Procurement Opportunity definition Build out organisation & deliver savings 01 EU SSC expansion Digital & Ba
Slide 21: We are executing our strategy at pace
Strategic execution We are executing our strategy at pace Strategic Focus 2025 2026 pillar area progress priorities Beyond… Large site turnaround 1st site initiation Implement 1st & 2nd sites Procurement Opportunity definition Build out organisation & deliver savings 01 EU SSC expansion Digital & Ba
Slide 22: Outlook
Outlook CEO | Damien Caby
Slide 23: Stable outlook; focused on execution
Outlook Stable outlook; focused on execution • Stabilising outlook;sheet Strong balance 2026 in-line with current market expectations • OCC revenue growth of 1-2% • Adjusted operating profit ~10%, reflecting continued focus on efficiency and the first results of Transform • Leverage at 1.7x returnin
Slide 24: Morgan Advanced Materials
MMorgan Advanced Maverials
Slide 25: Appendix
Appendix
Slide 26: Updated financial framework
Appendix Updated financial framework Delivering sustainable EPS growth Clear financial framework targets Organic revenue growth GDP+ + Continuing profit growth 12% to 14% adjusted operating profit margin + Accretive M&A ROIC 17-20% + Additional shareholder returns Leverage 1.0x to 1.5x, up to 2.0x p
Slide 27: Financial Calendar
Appendix Financial Calendar Event Date AGM & Trading update 7 May 2026 Interim Results – H1 2026 August 2026 Trading update November 2026 27
Slide 28: Consensus Forecasts
Appendix Consensus Forecasts 2025 2025 (Range) 2026 2026 (Range) Revenue 1,013 985 – 1,028 1,010 969 – 1,070 Adjusted operating profit 101 99 – 103 100 97 – 107 Adjusted operating profit margin 10.0% 9.8% – 10.1% 10.0% 9.5% - 10.2% EPS 18.7 17.5 – 20.1 19.1 16.8 – 21.5 Leverage 1.7x 1.6x – 1.8x 1.7x
Slide 29: Segmental performance
Appendix Segmental performance Revenue Adjusted operating profit Margin £m £m % OCC Change 2025 2024 Change % 2025 2024 2025 2024 % Performance Carbon 306.8 345.2 (11.1)% (8.9)% 41.2 55.1 13.4% 16.0% Technical Ceramics 341.6 337.3 1.3% 3.4% 39.4 39.2 11.5% 11.6% Thermal Products 348.2 377.6 (7.8)% (
Slide 30: Foreign currency impacts
Appendix Foreign currency impacts The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: 2025 2024 Closing Average Closing Average GBP to: rate rate rate rate USD 1.35 1.32 1.25 1.28 Euro 1.15 1.17 1.21 1.18 For illustrative purposes, the table
Slide 31: Adjusted earnings per share
Appendix Adjusted earnings per share £m 2025 2024 Profit for the period attributable to shareholders of the Company 21.1 50.3 Profit from discontinued operations (23.7) (3.3) Profit from continuing operations (2.6) 47.0 Specific adjusting items 47.6 22.4 Amortisation of intangible assets 1.0 1.7 Tax
Slide 32: Reported statutory figures
Appendix Reported statutory figures 2025 2024 Results before Results before Specific adjusting Specific adjusting £m specific adjusting items Total specific adjusting items Total items items Revenue 996.6 - 996.6 1,060.1 - 1,060.1 Operating costs before amortisation of intangible assets, impairments
Slide 33: Sale of MMS
Appendix Sale of MMS Reporting to Headline Reconciliation Gain on Disposal £m FY25 FY24 £m Share consideration 55.7 Revenue Cash consideration 20.5 Reported 996.6 1,060.1 Total consideration 76.2 Discontinued - MMS 33.7 40.6 Net assets disposed of (38.5) Headline 1,030.3 1,100.7 Transaction costs &
Slide 34: Good progress on our ESG commitments
Appendix Good progress on our ESG commitments Absolute CO2e emissions1 Water usage2 230 1.93 211 1.73 1.72 1.61 1.63 158 153 171 1.43 145 Scope 1 and 2 CO2e down 5% 1 58% below 2015 baseline (2030 Goal: 50% below) 2021 2022 2023 2024 2025 Target 2021 2022 2023 2024 2025 Target 80% low carbon electri
Slide 35: Semiconductors, and where we play
Appendix Semiconductors, and where we play Materials and Wafer Fabrication Equipment (WFE) for Silicon (Si) and Silicon Carbide (SiC) Ingot growth / Epitaxy / Dry plasma / Ion Thermal Inspection / Wafer Lithography Packaging Deposition Wet etch implantation processing Testing manufacturing Ceramic m
Morgan Advanced Materials — FY2025 Earnings Presentation on 6ix