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Morgan Advanced MaterialsAnnouncement

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RNS Number : 1624K  Morgan Advanced Materials PLC  04 December 2025

Press Release

Morgan Advanced Materials plc

4 December 2025

Strategy Update

Unlocking our potential

Morgan Advanced Materials plc, the global leader in advanced ceramics and
carbon systems for technologically demanding applications, is today holding a
Strategy Update in London. Participation in the event is by invitation only
for institutional analysts and investors.

Damien Caby, Chief Executive Officer and Richard Armitage, Chief Financial
Officer will host the event. They will present Morgan's strategy for
sustainable growth, focussing on:

-  Transforming our operational effectiveness to turnaround underperforming
sites and improve our supply chain effectiveness

- Driving stronger growth by focusing on our right to win to enhance our
value proposition, strengthening partnerships, and expanding in the right
areas to gain share

-  Maximising our portfolio through partnerships, divestments and bolt-on
M&A

They will also set out an updated financial framework and re‐iterate our
capital allocation priorities:

-  Above Market Organic Revenue Growth. We expect to achieve growth in excess
of GDP

- Attractive Margins. We expect to achieve adjusted operating profit margin
of 12% by 2028 with sustainable adjusted operating profit margins of between
12% and 14% beyond 2028

- Delivering EPS Growth. Achieving sustained growth in adjusted Earnings per
Share, ahead of organic revenue growth, driven by a combination of organic
growth, margin accretion, shareholder returns and M&A

- Sustaining ROIC. 17% ‐ 20% ROIC

- Leverage Range. 1.0x to 1.5x, or up to 2.0x adjusted EBITDA
post-acquisition, utilising our strong balance sheet to fund our organic
growth, and then over time deploying excess capital to fund incremental
M&A or additional shareholder returns as appropriate

- Dividend Cover. Shareholder dividends maintained then growing with adjusted
earnings at around 2.5x cover

We intend to pause our buy-back programme as part of our focus on balance
sheet resilience. The programme will be paused after the completion of the
second tranche, by which time we will have purchased £20m of shares.

No new information on current year trading will be shared at the event.

Damien Caby, Chief Executive Officer, commented:

"Morgan is an exciting innovative company with distinctive capabilities and
competitive advantages that give us a decisive right to win across our diverse
markets. However, we have not been delivering to our ambition or to our full
potential. Much of this value can be achieved through more rigorous customer
focus and portfolio management. I will set out today a clear strategy
focussing on unlocking the Group's potential by focussing on transformation of
operational effectiveness, driving stronger growth and the maximisation of
portfolio value. This will help us improve the financial performance of the
group on a more sustainable basis to deliver against a revised financial
framework."

The presentation will be made available at www.morganadvancedmaterials.com at
2pm today, along with a recording of the presentation that will be made
available following the event.

 

For further enquiries:

 Richard Armitage, CFO      Morgan Advanced Materials  01753 837 000
 Nicholas Frost, Investor Relations

 Nina Coad                  Brunswick                  0207 404 5959

 

Important notice:

This announcement contains forward-looking statements. These statements have
been made in good faith based on the information available up to the time of
the approval of this announcement. No assurance can be given that these
expectations will prove to have been correct. By their nature, forward-looking
statements involve risks, uncertainties or assumptions that could cause actual
results to differ materially from those expressed or implied by these
forward-looking statements. As such, undue reliance should not be placed on
forward-looking statements.

The Directors undertake no obligation to update any forward-looking statements
whether as a result of new information, future events or otherwise.

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