Morgan Advanced Materials (LON:MGAM) Issues Earnings Results

Morgan Advanced Materials (LON:MGAM) posted its earnings results on Tuesday. The company reported GBX 15.90 earnings per share for the quarter, Digital Look Earnings reports. Morgan Advanced Materials had a net margin of 2.66% and a return on equity of 8.32%.

Here are the key takeaways from Morgan Advanced Materials’ conference call:

• In 2025 group headline revenue fell 3.3% OCC to £1.03bn but the company delivered a resilient headline adjusted operating margin of 9.6%, adjusted EPS of £0.159, free cash flow inflow of £45m and kept the dividend flat.
• Guidance for 2026 targets 1–2% organic constant-currency revenue growth with adjusted operating margin returning to around 10%, CapEx ~£50m and a plan to reduce leverage toward the target range.
• Management is accelerating its transformation programs—procurement, site turnarounds and ERP rollout—with expected net benefits (circa £11m in 2026) and a targeted £20m margin uplift by 2028 from procurement and site actions.
• Portfolio optimization is underway — the sale of Molten Metal Systems is progressing (net ~£10m received so far) and a strategic review of the Thermal Products division has started, including disposal as an option to improve group margin and growth profile.
• Semiconductor weakness was the principal drag (roughly £33m of the revenue decline), prompting a £15.6m impairment on U.K. semiconductor assets and ongoing uncertainty around silicon carbide demand timing.

Morgan Advanced Materials Stock Up 1.0%

MGAM opened at GBX 211 on Thursday. The company has a fifty day moving average price of GBX 230.70 and a 200-day moving average price of GBX 216.46. The firm has a market capitalization of £582.81 million, a P/E ratio of 21.53, a price-to-earnings-growth ratio of 0.51 and a beta of 1.16. The company has a debt-to-equity ratio of 120.33, a current ratio of 1.74 and a quick ratio of 1.26. Morgan Advanced Materials has a one year low of GBX 167 and a one year high of GBX 251.50.

Analysts Set New Price Targets

A number of research analysts recently weighed in on MGAM shares. Berenberg Bank reiterated a “buy” rating and issued a GBX 265 price objective on shares of Morgan Advanced Materials in a research note on Wednesday. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a GBX 210 price target on shares of Morgan Advanced Materials in a report on Wednesday. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 237.50.

Morgan Advanced Materials Company Profile

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.