Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — H1 2026 Earnings Presentation
35 slides from Morgan Advanced Materials's earnings presentation, Aug 6, 2026
Slide 1: Morgan Advanced Materials 2026 Interim Results
Morgan Advanced Materials 2026 Interim Results 6 August 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 33
Slide 4: Key messages
Key messages Financial • Resilient revenue; encouraging growth in strategic areas Performance • Major site turnaround and Procurement initiatives on track Transform • Focused teams accelerating growth; OEM engagement delivering wins Drive Maximise • Strategic • Strategic Review Review of Thermal of
Slide 5: Resilient revenue; encouraging growth in strategic areas
Market context Resilient revenue; encouraging growth in strategic areas £518m OCC1 revenue Total revenue2 by half +3.0% +1.8% £509m +4.8% £494m H1 2025 Energy Aerospace Industrial Other Phasing H1 2026 H2 2024 H1 2025 H2 2025 H1 2026 OCC 1 & Defence & CPI benefit Reported • Increased energy demand f
Slide 6: Financial Performance
Financial Performance CFO | Richard Armitage
Slide 7: Performance in-line with expectations
Financial Performance Performance in-line with expectations OCC1 revenue growth Adj. earnings per share3 34.0% +4.8% 10.7p Thermal H1 20255: (6.1)% decline H1 20255: 9.9p Products 2.5% OCC1 35.4% Adj. operating Return on invested profit2 capital4 Technical Revenue Ceramics +7.8% OCC1 £518.1m £57.8m
Slide 8: Performance Carbon: Strong growth in Energy, offset by Defence
Performance Carbon Strong growth in Energy, offset by Defence Revenue2 by half OCC1 revenue £158.3m (1.8)% +5.8% +4.0% £152.2m £149.4m H1 2025 1 Energy Aerospace Industrial H1 2026 Take H1 2026 H2 2024 H1 2025 H2 2025 H1 2026 OCC & Defence & Other -or-pay Reported • Growth in Energy led by strong de
Slide 9: Technical Ceramics: Aerospace & Defence and Energy growth drive profit
Technical Ceramics Aerospace & Defence and Energy growth drive strong profit performance OCC1 revenue Revenue2 by half +7.8% £183.7m +7.8% £170.4m H1 2025 Aerospace & Defence Energy H1 2026 H2 2024 H1 2025 H2 2025 H1 2026 OCC1 Reported • Strong growth in Aerospace & Defence where our ceramic cores a
Slide 10: Thermal Products: Revenue growth; margin impacted by Q1
Thermal Products Revenue growth; margin impacted by Q1 operational performance OCC1 revenue Revenue2 by half +2.5% £176.1m +2.5% £171.8m 3 3 3 H1 2025 Asia & RoW Americas Europe H1 2026 H2 2024 H1 2025 H2 2025 H1 2026 OCC 1,2,3 Reported • Strong performance in Asia, particularly in India and China f
Slide 11: Strong sequential margin improvement; supported by efficiency gains
Financial Performance Strong sequential margin improvement; supported by efficiency gains +170 bps +1.6% 11.2% (1.0)% +0.6% (0.8)% 10.9% (2.0)% +1.9% 7.9% 2 H1 2025 1, 2 Prior year Volume & Mix H2 2025 1, 2 Efficiency Simplification Operational Take-or-pay H1 2026 non-repeat inefficiency phasing • S
Slide 12: Specific adjusting items
Financial Performance Specific adjusting items1 Restructuring includes costs associated Continuing operations; £m H1 2026 H1 20252 with the closure of Technical Ceramics site Net restructuring charge (4.7) (5.8) in the USA Impairment relating to restructuring (4.7) (1.3) Global ERP implementation (1
Slide 13: Leverage in-line with expectations
Financial Performance Leverage in-line with expectations H1 2026 H1 2025 £m £m EBITDA 78.5 74.6 Net working capital (23.5) 6.3 Cash flow movements Net capital expenditure (12.5) (38.9) £6m Net interest (9.5) (9.0) 2.0x Tax paid (11.5) (12.0) Exceptional items (15.2) (11.4) £19m Lease payments (6.3)
Slide 14: Capital allocation prioritises growth and returns
Financial Performance Capital allocation prioritises growth and returns Prioritise return to target leverage range through trough of cycle: 1 Strong balance sheet • 1.0x to 1.5x, or up to 2.0x post-acquisition Investment focused on efficiency, limited capacity needs 2 Organic investment • • CAPEX ~1
Slide 15: Technical guidance
Financial Performance Technical guidance Continuing operations; £m 2026 Guidance 2025 Reported Capital expenditure guidance unchanged, weighted towards H2 due to project phasing Translational foreign exchange Revenue impact n/a ~£(31)m Adjusted operating profit impact n/a ~£(7)m Leverage begins to r
Slide 16: Full year outlook
Outlook Full year outlook • OCC1 revenue growth of ~2% • Noting a headwind due to foreign exchange, adjusted operating profit2 margin for the second half broadly in-line with the first half, excluding the phasing benefit of £8.9m from the take-or-pay agreement • Guidance reflects the first benefits
Slide 17: Strategic Execution
Strategic Execution CEO | Damien Caby
Slide 18: Unlocking our potential and driving margin enhancing growth
Our strategy Unlocking our potential and driving 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
Slide 19: We are executing our strategy at pace
Strategic execution We are executing our strategy at pace Focus area 2025 2026 2027 Beyond… 1st site Large site 2nd site turnaround Further sites Sustained improvement Category management embedded Group-led procurement Procurement Savings delivery Shared services Digital & Back-office ERP transforma
Slide 20: We are executing our strategy at pace
Strategic execution We are executing our strategy at pace Focus area 2025 2026 2027 Beyond… 1st site Large site 2nd site turnaround Further sites Sustained improvement Category management embedded Group-led procurement Procurement Savings delivery Shared services Digital & Back-office ERP transforma
Slide 21: We are executing our strategy at pace
Strategic execution We are executing our strategy at pace Focus area 2025 2026 2027 Beyond… 1st site Large site 2nd site turnaround Further sites Sustained improvement Category management embedded Group-led procurement Procurement Savings delivery Shared services Digital & Back-office ERP transforma
Slide 22: Augusta transformation
Transform Augusta transformation Optimising the operating model to drive profitable growth Objectives • Expand margins with an improved operating model • Drive growth with an optimised product portfolio, supported by a reorganised commercial structure • Enhance execution through integrated supply an
Slide 23: Transforming our Engineered Ceramics footprint
Transform Transforming our Engineered Ceramics footprint Rebalancing production to better utilise global resources Objectives • Optimise asset utilisation by rebalancing production across manufacturing sites • Enhance margins by improving cost competitiveness with a more efficient production footpri
Slide 24: Driving growth through market outperformance
Drive Driving growth through market outperformance Growing in attractive markets where we have the right to win Market examples Energy storage Rail Wind Structural demand driven by battery safety and Installed base and transport investment Long-term demand for renewable generation thermal runaway pr
Slide 25: Key messages
Key messages Financial • Resilient revenue; encouraging growth in strategic areas Performance Transform • Major site turnaround and Procurement initiatives on track Drive • Focused teams accelerating growth; OEM engagement delivering wins Maximise • Strategic • Strategic Review Review of Thermal of
Slide 26: MMorgan
MMorgan Advanced Matarala
Slide 27: Appendix
Appendix
Slide 28: Financial framework
Appendix 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 post-acqu
Slide 29: Financial calendar
Appendix Financial calendar Event Date Trading update November 2026 FY 2026 Results March 2027 29
Slide 30: Consensus forecasts
Appendix Consensus forecasts 2026 2026 (Range) 2027 2027 (Range) Revenue 1,010 1,001 – 1,020 1,045 1,033 – 1,051 Adjusted operating profit1 99 97 – 102 111 103 – 114 Adjusted operating profit1 margin 9.8% 9.7% – 10.0% 10.6% 10.0% - 11.0% EPS 17.3 16.3 – 18.3 20.7 18.5 – 21.8 Leverage 1.7x 1.6x – 1.8
Slide 31: Segmental performance
Appendix Segmental performance Revenue Adjusted operating profit3 Margin £m £m % OCC1 Change H1 2026 H1 20252 Change % H1 2026 H1 20252 H1 2026 H1 20252 % Performance Carbon 158.3 154.1 2.7% 4.0% 27.0 25.2 17.1% 16.4% Technical Ceramics 183.7 173.0 6.2% 7.8% 23.8 20.2 13.0% 11.7% Thermal Products 17
Slide 32: Foreign currency impacts
Appendix Foreign currency impacts The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: H1 2026 H1 2025 Closing Average Closing Average GBP to: rate rate rate rate USD 1.32 1.34 1.37 1.30 Euro 1.16 1.15 1.16 1.19 For illustrative purposes, the
Slide 33: Adjusted earnings per share
Appendix Adjusted earnings per share £m H1 2026 H1 20251 Profit for the period attributable to shareholders of the Company 12.3 15.0 Loss from discontinued operations - 0.9 Profit from continuing operations 12.3 15.9 Specific adjusting items 18.4 12.7 Amortisation of intangible assets 0.3 0.5 Tax ef
Slide 34: Reported statutory figures
Appendix Reported statutory figures H1 2026 H1 20251 Results before Results before Specific adjusting Specific adjusting £m specific adjusting items Total specific adjusting items Total items items Revenue 518.1 - 518.1 502.5 - 502.5 Operating costs before amortisation of intangible assets (460.3) (
Slide 35: Progress against our ESG commitments
Appendix Progress against our ESG commitments Absolute CO2e emissions1 Water usage2 211 1.93 171 1.72 1.61 1.63 158 153 145 1.43 5 74 0.62 Scope 1 and 2 CO2e down 8% 1 Annualised 57% below 2015 baseline (2030 Goal: 2022 2023 2024 2025 H1 Target 50% below) 2022 2023 2024 2025 H1 Target 2026 2026 74%
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