Johnson Matthey has recorded a 65% year-on-year decrease in its reported operating profit, which fell to £161m in the year to 31 March.

The FTSE 250 speciality chemicals and sustainable technologies company added this result reflects “significant profit” on disposals in the prior year, partly offset by lower impairment and restructuring charges.

The firm said that across the year, it had made good progress on executing its strategy in creating a "focused, lean and cash generative" group, as its free cash flow jumped 163% year-on-year to £168m.

Its revenue also increased by 14% in this period to £12.5bn, although its reported profit before tax fell by 77% to £91m.

Johnson Matthey reported that its £1.3bn sale of Catalyst Technologies will complete by the end of August, with £1bn being returned to shareholders.

It has also announced that it has agreed to acquire the US manufacturer, Cormetech, for $360m, as it looks to drive growth in stationary emissions control applications, including in the growing US data centre market.

In its outlook, the speciality chemicals and technologies firm said it expects low to mid-single digit percentage growth in its underlying operating profit, excluding Catalyst Technologies and Cormetech.

It added that it expects to deliver a further improvement in free cash flow generation, although its group capital expenditure is now expected to be higher at £230m to support delivery of its new platinum group metal refinery.

However, this increase is set to be fully offset by additional working capital efficiencies due to "significant progress already made, which will be further accelerated".

Johnson Matthey stated that while its remains mindful of the heightened geopolitical and macroeconomic uncertainty due to the Middle East conflict, and its performance may be impacted by the future impact on global demand, supply chains and inflation.

CEO at Johnson Matthey, Liam Condon, concluded: "In May 2025, we set out our strategy to transform Johnson Matthey into a focused, lean and cash generative group. The significant increase in cash generation shows our strategy is working. We also made progress in the year on decisive portfolio changes that will reshape the company for years to come and drive sustainable value creation.

"The sale of Catalyst Technologies is on track and the acquisition of Cormetech represents another important milestone in Johnson Matthey's development. Cormetech will materially enhance the scale of Clean Air Solutions and create a global leader in stationary emissions control, including for the rapidly growing data centre market.

"Together with the progress we are making on strengthening our core businesses, we are on track to achieve our medium-term targets and deliver enhanced shareholder returns."

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