Johnson Matthey (1K) | Buy (Not Rated) | Catalysed emission treatment growth

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Johnson Matthey (1K) | Buy (Not Rated) | Catalysed emission treatment growth

Johnson Matthey Buy | Target Price: 2,450.0p

Catalysed growth

Exposure and relevance of the catalyst business

Johnson Matthey is one of the leading global catalyst players, focused primarily on mobile

emissions. However, the recently announced planned acquisition of Cormetech should also

strengthen Johnson Matthey’s stationary business, particularly in the rapidly growing data centre

market. The massive power needs of data centres cannot be met through sourcing energy from

the public grid alone, and the public grid is frequently too slow to provide sufficient power to the

fast-moving data centre industry.

Hence, fuel- or gas-powered plants are used, at least as a backup solution, which require the use

of catalysts for emission treatment. Johnson Matthey is considered the leader in diesel emission

control and exhaust treatment – a key opportunity, particularly in the still growing heavy-duty

diesel market, but also a challenge, given that the light-duty diesel market has seen a sharp

decline, particularly in smaller cars, as diesel engine technology has become increasingly

expensive versus simpler gasoline engines, while hybrids typically combine an electric drivetrain

with a gasoline engine.

Chart 1: JMAT: 2025/26 core segment sales (ex precious metals trading) Chart 2: JMAT: 2025/26 split of key markets within Clean Air

Hydrogen

Heavy duty Technologies

diesel 3%

34%

PGM Services

16% Light duty

diesel

47%

Clean Air

81% Light duty

gasoline

19%

Source: JMAT, Kepler Cheuvreux Source: JMAT, Kepler Cheuvreux

Johnson Matthey plans to sell its Catalyst Technologies business (chemical process catalysts) to

Honeywell International, with the transaction expected to close by August 2026.