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Yahoo
23-05-2025
- Business
- Yahoo
Johnson Matthey PLC (JMPLF) Full Year 2025 Earnings Call Highlights: Strategic Divestment and ...
Revenue: Sales increased by 50% in Catalyst Technologies. Operating Margin: Catalyst Technologies margin improved from 7% to 14%; Clean Air margin increased to almost 12% this year, with expectations to reach mid-teens by year-end. EBITDA: Catalyst Technologies had a GBP30 million EBITDA three years ago. Net Sale Proceeds: GBP1.8 billion from the sale of Catalyst Technologies, with GBP1.6 billion net proceeds after taxes and costs. Shareholder Returns: GBP1.4 billion to be returned to shareholders, equating to GBP8 per share based on the previous day's share price. Net Debt: Reduced to GBP799 million, with a leverage ratio of 1.4 times. Free Cash Flow: Positive free cash flow for the year, with a GBP400 million improvement from the first half to the second half. Dividend: Maintained at 7p, totaling GBP130 million for the year. Clean Air Sales Decline: Sales down 8% due to global automotive production environment. PGM Profitability: Nearly doubled in the second half. Hydrogen Losses: Halved in the second half, moving towards breakeven. CapEx: GBP1.25 billion spent over the last four years, with plans to reduce significantly post-refinery completion. Cash Returns Commitment: GBP200 million annually from '26/'27 onwards. Future Sales Projections: Clean Air sales expected to exceed GBP2 billion by '27/'28; PGM sales projected at GBP450 million by '27/'28. Warning! GuruFocus has detected 6 Warning Signs with JMPLF. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Johnson Matthey PLC (JMPLF) announced the sale of its Catalyst Technologies business to Honeywell for GBP1.8 billion, a significant valuation compared to previous offers. The company has significantly improved its Clean Air business, increasing margins from 8% to nearly 12%, with expectations to reach 16-18% by 2027/28. Johnson Matthey PLC (JMPLF) plans to return GBP1.4 billion to shareholders from the Catalyst Technologies sale proceeds. The new world-class refinery for Platinum Group Metals (PGM) is on track, expected to enhance cash generation and operational efficiency. The company has committed to delivering GBP200 million in cash returns to shareholders annually from 2026/27 onwards, supported by strong free cash flow projections. The transition to the new PGM refinery will incur additional costs and lower metal recoveries during the commissioning phase, impacting short-term profitability. The hydrogen market has underperformed expectations, leading to asset impairments and a delay in profitability. Clean Air sales have been affected by a decline in global automotive production, impacting revenue growth. The company faces challenges in reducing central costs and stranded costs following the sale of Catalyst Technologies. Johnson Matthey PLC (JMPLF) has experienced a high level of one-off items impacting financial results, including restructuring costs and asset write-downs. Q: Why is the timeline for the completion of the Catalyst Technologies sale set for the first half of 2026, and are there any key regulatory approvals required? A: The timeline is dependent on regulatory approvals, primarily from the US, Europe, and China. Given the minimal overlap between Johnson Matthey and Honeywell's businesses, the process is expected to be straightforward. The timeline has been agreed upon with Honeywell as a reasonable estimate. - Liam Condon, CEO Q: What are the plans for reducing central costs following the sale of Catalyst Technologies? A: Currently, about GBP15 million of central costs are charged to Catalyst Technologies. Post-sale, we aim to reduce these costs by improving processes across all areas, including finance, HR, and IT, to align with the smaller size of the group. - Richard Pike, CFO Q: Why was Hydrogen Technologies not included in the Catalyst Technologies sale to Honeywell? A: Hydrogen Technologies was integrated into Clean Air due to customer overlap and to benefit from shared overheads. This restructuring was necessary as the growth in hydrogen was not as initially forecasted. - Liam Condon, CEO Q: Can you provide an update on the new PGM refinery and how you plan to ensure a smooth transition from the old to the new plant? A: We are still in the construction phase and expect to begin commissioning at the end of this year or early next year. The transition will be gradual, with metal streams being moved one at a time to ensure a smooth start-up. We have extensive plans and expert teams in place to manage this process. - Liam Condon, CEO Q: What is the expected cash impact of the new refinery on PGMS from 2025/26 to 2027/28? A: During the transition, there will be increased depreciation and dual running costs, but these will be offset by the new refinery's efficiency and capacity to process higher volumes and more complex feeds, leading to improved margins and cash flow in the long term. - Richard Pike, CFO Q: Is the GBP250 million free cash flow target for 2027/28 clean, and does it include any net working capital realization? A: Yes, the GBP250 million target is clean free cash flow, excluding any net working capital realization. It reflects normalized profitability with ongoing operational improvements and lower levels of CapEx. - Richard Pike, CFO Q: What are the revenue expectations for Clean Air to achieve the 16% to 18% margin target by 2027/28? A: We expect Clean Air to generate over GBP2 billion in sales by 2027/28, with 90% of this already secured. The focus will be on maintaining high market shares and improving operational efficiency to achieve the margin target. - Anish Taneja, Chief Executive, Clean Air Q: How will the sale of Catalyst Technologies impact Johnson Matthey's strategic focus and financial outlook? A: The sale allows us to focus on our core competencies in PGMS and Clean Air, enhancing our ability to generate cash and commit to shareholder returns. We expect to deliver GBP200 million in cash returns annually from 2026/27 onwards. - Liam Condon, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Johnson Matthey PLC (JMPLF) Full Year 2025 Earnings Call Highlights: Strategic Divestment and ...
Revenue: Sales increased by 50% in Catalyst Technologies. Operating Margin: Catalyst Technologies margin improved from 7% to 14%; Clean Air margin increased to almost 12% this year, with expectations to reach mid-teens by year-end. EBITDA: Catalyst Technologies had a GBP30 million EBITDA three years ago. Net Sale Proceeds: GBP1.8 billion from the sale of Catalyst Technologies, with GBP1.6 billion net proceeds after taxes and costs. Shareholder Returns: GBP1.4 billion to be returned to shareholders, equating to GBP8 per share based on the previous day's share price. Net Debt: Reduced to GBP799 million, with a leverage ratio of 1.4 times. Free Cash Flow: Positive free cash flow for the year, with a GBP400 million improvement from the first half to the second half. Dividend: Maintained at 7p, totaling GBP130 million for the year. Clean Air Sales Decline: Sales down 8% due to global automotive production environment. PGM Profitability: Nearly doubled in the second half. Hydrogen Losses: Halved in the second half, moving towards breakeven. CapEx: GBP1.25 billion spent over the last four years, with plans to reduce significantly post-refinery completion. Cash Returns Commitment: GBP200 million annually from '26/'27 onwards. Future Sales Projections: Clean Air sales expected to exceed GBP2 billion by '27/'28; PGM sales projected at GBP450 million by '27/'28. Warning! GuruFocus has detected 6 Warning Signs with JMPLF. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Johnson Matthey PLC (JMPLF) announced the sale of its Catalyst Technologies business to Honeywell for GBP1.8 billion, a significant valuation compared to previous offers. The company has significantly improved its Clean Air business, increasing margins from 8% to nearly 12%, with expectations to reach 16-18% by 2027/28. Johnson Matthey PLC (JMPLF) plans to return GBP1.4 billion to shareholders from the Catalyst Technologies sale proceeds. The new world-class refinery for Platinum Group Metals (PGM) is on track, expected to enhance cash generation and operational efficiency. The company has committed to delivering GBP200 million in cash returns to shareholders annually from 2026/27 onwards, supported by strong free cash flow projections. The transition to the new PGM refinery will incur additional costs and lower metal recoveries during the commissioning phase, impacting short-term profitability. The hydrogen market has underperformed expectations, leading to asset impairments and a delay in profitability. Clean Air sales have been affected by a decline in global automotive production, impacting revenue growth. The company faces challenges in reducing central costs and stranded costs following the sale of Catalyst Technologies. Johnson Matthey PLC (JMPLF) has experienced a high level of one-off items impacting financial results, including restructuring costs and asset write-downs. Q: Why is the timeline for the completion of the Catalyst Technologies sale set for the first half of 2026, and are there any key regulatory approvals required? A: The timeline is dependent on regulatory approvals, primarily from the US, Europe, and China. Given the minimal overlap between Johnson Matthey and Honeywell's businesses, the process is expected to be straightforward. The timeline has been agreed upon with Honeywell as a reasonable estimate. - Liam Condon, CEO Q: What are the plans for reducing central costs following the sale of Catalyst Technologies? A: Currently, about GBP15 million of central costs are charged to Catalyst Technologies. Post-sale, we aim to reduce these costs by improving processes across all areas, including finance, HR, and IT, to align with the smaller size of the group. - Richard Pike, CFO Q: Why was Hydrogen Technologies not included in the Catalyst Technologies sale to Honeywell? A: Hydrogen Technologies was integrated into Clean Air due to customer overlap and to benefit from shared overheads. This restructuring was necessary as the growth in hydrogen was not as initially forecasted. - Liam Condon, CEO Q: Can you provide an update on the new PGM refinery and how you plan to ensure a smooth transition from the old to the new plant? A: We are still in the construction phase and expect to begin commissioning at the end of this year or early next year. The transition will be gradual, with metal streams being moved one at a time to ensure a smooth start-up. We have extensive plans and expert teams in place to manage this process. - Liam Condon, CEO Q: What is the expected cash impact of the new refinery on PGMS from 2025/26 to 2027/28? A: During the transition, there will be increased depreciation and dual running costs, but these will be offset by the new refinery's efficiency and capacity to process higher volumes and more complex feeds, leading to improved margins and cash flow in the long term. - Richard Pike, CFO Q: Is the GBP250 million free cash flow target for 2027/28 clean, and does it include any net working capital realization? A: Yes, the GBP250 million target is clean free cash flow, excluding any net working capital realization. It reflects normalized profitability with ongoing operational improvements and lower levels of CapEx. - Richard Pike, CFO Q: What are the revenue expectations for Clean Air to achieve the 16% to 18% margin target by 2027/28? A: We expect Clean Air to generate over GBP2 billion in sales by 2027/28, with 90% of this already secured. The focus will be on maintaining high market shares and improving operational efficiency to achieve the margin target. - Anish Taneja, Chief Executive, Clean Air Q: How will the sale of Catalyst Technologies impact Johnson Matthey's strategic focus and financial outlook? A: The sale allows us to focus on our core competencies in PGMS and Clean Air, enhancing our ability to generate cash and commit to shareholder returns. We expect to deliver GBP200 million in cash returns annually from 2026/27 onwards. - Liam Condon, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
27-03-2025
- Business
- Yahoo
Evoke PLC (EIHDF) (Q4 2024) Earnings Call Highlights: Navigating Growth and Challenges
Revenue Growth: Full-year revenue growth of 3%, with second-half growth of 8%. Adjusted EBITDA: Increased by 4% to GBP312 million. Adjusted EBITDA Margin: 22% in the second half of 2024, expected to be 20% for full-year 2025. Online Growth: Online markets grew 12% year-over-year. UK Gaming Growth: UK online gaming up 9% for the full year. International EBITDA Growth: 31% growth due to operating leverage and cost reductions. Retail EBITDA Decline: Declined by 33% due to high fixed costs. Net Debt: Increased by GBP30 million to GBP1.79 billion. Leverage Ratio: Reduced to 5.7 times, with a target of 5 times by year-end 2025. Cost Savings: GBP15 million to GBP25 million further savings expected in 2025. Cash Flow: Net cash increased by GBP19 million, with cash burn of GBP65 million for the year. Revenue from Core Markets: 90% of revenue from core markets. Revenue Growth Target: 5% to 9% for the full year 2025. Q1 2025 EBITDA Increase: Expected to be GBP18 million to GBP28 million higher than last year. ARPU Increase: Up 6% for the year and 27% in Q4. Warning! GuruFocus has detected 8 Warning Signs with EIHDF. Release Date: March 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evoke PLC (EIHDF) reported a 3% revenue growth for the full year, with an 8% growth in the second half, aligning with their midterm target of 5% to 9%. The company achieved an adjusted EBITDA growth of 4% to GBP312 million, surpassing previous expectations. Evoke PLC successfully returned to growth for the first time in three years, driven by strong performance in their core markets. The acquisition of Winner expanded their market presence in Romania, contributing to a 12% year-over-year growth in online coal markets. The company has implemented a GBP30 million cost optimization program, with further savings expected in 2025, enhancing profitability and operational efficiency. Evoke PLC's leverage remains high, with net debt increasing by GBP30 million to GBP1.79 billion, and the leverage target of below 3.5 times being postponed to 2027. The company faced a cash burn of around GBP65 million in 2024, primarily due to exceptional costs related to business transformation. Despite improvements, the retail segment experienced a 33% decline in EBITDA due to a high proportion of fixed costs. The company anticipates being slightly below their 5% to 9% revenue growth guidance in Q1 2025 due to various short-term impacts. Evoke PLC's stock price has decreased by approximately 30% since the CEO's tenure began, raising concerns about shareholder value and the timeline for dividend returns. Q: Can you explain the building blocks for achieving your 5% to 9% NGR growth this year, especially considering the challenging Q1 and Q4 comps? A: Sean Wilkins, CFO: In Q1, we faced short-term impacts from safer gambling measures and were lapping elevated marketing from the prior year. Despite these challenges, we expect improvements in product offerings, retail enhancements, and customer lifecycle management to drive growth. Our investments in AI and strategic initiatives will also support this trajectory. Q: Is retail growing in Q1 '25, and are you taking market share? A: Per Widerstrom, CEO: Yes, we are seeing growth and market share gains in retail. We've made significant improvements, including new gaming machines and enhanced in-store experiences. These efforts are part of our strategy to reset the retail channel and improve competitiveness. Q: Why has the leverage target been postponed to 2027, and what investments are causing this delay? A: Sean Wilkins, CFO: The delay is due to increased investments in retail refurbishments, AI, and online products, alongside exceptional costs for achieving cost efficiencies. These investments are expected to pay off over time, contributing to our long-term growth and profitability. Q: Can you comment on the trend of declining sportsbook stakes and increasing sportsbook margins? A: Per Widerstrom, CEO: The shift towards a more sustainable customer mix and focus on high-value customers has impacted stakes. However, our enhanced product offerings and improved trading capabilities are driving higher margins, supporting long-term profitability. Q: What are the expectations for sports net revenue margin in Q1 '25 compared to Q1 '24? A: Sean Wilkins, CFO: We anticipate a slight increase in margin due to improvements in customer and product mix. Our ongoing efforts to enhance sportsbook trading and risk management will continue to support margin growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
