Morgan Advanced Materials FY profits sink as margins contract
By Iain Gilbert
Date: Tuesday 03 Mar 2026
(Sharecast News) - Specialist manufacturer Morgan Advanced Materials posted lower full‑year profits and margins on Tuesday as weaker demand weighed on revenue.
Morgan Advanced Materials said headline revenues had fallen 6.4% to £1.03bn, down from £1.1bn, or 3.3% lower on an organic constant‑currency basis, reflecting end-market weakness, notably in the semiconductor and European industrial markets, while headline adjusted operating profits dropped 22.8% to £99.1m, pushing headline adjusted operating margins down to 9.6% from 11.7%.
Headline adjusted basic earnings per share sunk from 24.2p to 15.9p in FY25, and Morgan Advanced Materials swung to a statutory loss per share of 1.0p, down
from earnings of 16.5p per share a year earlier. Total dividends were unchanged at 12.2p per share.
The FTSE 250-listed firm also noted that it had completed the disposal of its Molten Metal Systems business, a move it said simplifies the company and was expected to generate £27m of savings by 2026. A strategic review of its Thermal Products division was also under way.
Looking ahead, Morgan said trading expectations remain unchanged, with organic constant‑currency revenue growth of 1-2% and an adjusted operating margin of around 10%.
Chief executive Damien Caby said: "The business has delivered a resilient performance against a backdrop of challenging markets. Demand in our end-markets has now broadly stabilised and, on an organic constant-currency basis, revenue has remained stable since the second half of 2024.
"We remain confident in delivering sustainable above market organic revenue growth and returning the Group to a 12% margin by 2028."
As of 0820 GMT, Morgan Advanced Materials shares were down 3.64% at 225p.
Reporting by Iain Gilbert at Sharecast.com
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