Johnson Matthey to Return £1 Billion to Shareholders via Special Dividend and Share Consolidation After Catalyst Technologies Sale

Catalyst Technologies Sale and Capital Return Plan

On 17 July 2026, Johnson Matthey completed the sale of its Catalyst Technologies business to Honeywell Technologies, marking a key portfolio restructuring. The proceeds enable Johnson Matthey to implement a significant capital return program while maintaining its ongoing shareholder returns policy of at least £200 million annually for 2026/27 and beyond, split between dividends and share buybacks. This strategy underscores the company's commitment to shareholder value while preserving operational flexibility for future investments and working capital.

The timing and scale of the capital return highlight Johnson Matthey's confidence in its strategic direction. With over 200 years of expertise in advanced metals chemistry, the group classifies the proceeds from the Catalyst Technologies sale as extraordinary capital rather than recurring earnings, aiding investors in evaluating the sustainability of future payouts and operational performance independent of one-off transactions.

Special Dividend Details and Record Dates

Johnson Matthey intends to distribute approximately £800 million through a special dividend of 476.5 pence per existing ordinary share. Shareholders on the register at 6:00 p.m. on Friday, 14 August 2026, will be eligible, with payments to ordinary shareholders expected on 28 August 2026. For American Depositary Receipt (ADR) holders, an equivalent US dollar amount will be paid, with the ADR record date at 5:00 p.m. (New York time) on 14 August 2026 and payments commencing 8 September 2026.

Different payment dates for ordinary shareholders and ADR holders reflect UK and US market settlement differences. Shares will go ex-dividend at 8:00 a.m. London time on 17 August 2026, meaning shares purchased after this date will not qualify for the dividend. ADRs will be marked ex-dividend at 9:00 a.m. (New York time) on 9 September 2026.

Share Consolidation Process and Shareholder Impact

The company plans a 3-for-4 consolidation of ordinary shares effective 8:00 a.m. on Monday, 17 August 2026, coinciding with the admission of new shares. This consolidation reduces the number of shares proportionally to the market capitalization returned via the special dividend as of market close on 22 July 2026. Johnson Matthey expects the post-consolidation market price per share to remain broadly stable.

Shareholder proportions remain unchanged except for fractional entitlements and Dividend Reinvestment Plan participation. Each new share will carry identical rights but with a nominal value of 147 pence. Fractional entitlements will be aggregated and sold; proceeds of £5 or less will be retained by the company, while amounts above this threshold will be returned to shareholders. No fractional entitlement will exceed the value of one new share.

General Meeting Scheduled for 11 August 2026

Shareholders will meet on Tuesday, 11 August 2026, at 9:00 a.m. at Herbert Smith Freehills Kramer, Exchange House, Primrose Street, London EC2A 2EG to vote on the special dividend and share consolidation. The record date for voting entitlement is 6:30 p.m. on Friday, 7 August 2026. Proxy submissions must be received by 9:00 a.m. on 7 August 2026, allowing shareholders ample time to arrange voting in person or by proxy.

Additionally, the company will seek approval to renew annual authorities for share allotment, pre-emption rights disapplication, and share buybacks covering the period until the 2027 Annual General Meeting. These governance resolutions accommodate changes from the consolidation and maintain board flexibility for capital management. Full details are in the circular published on 27 July 2026.

£200 Million On-Market Share Buyback Program

Alongside the special dividend, Johnson Matthey plans a £200 million on-market share buyback as part of the overall £1 billion capital return. This approach offers shareholders cash via dividends or potential earnings per share accretion through buybacks. The buyback provides operational flexibility to execute capital returns over time while managing market impact.

The circular contains full details on buyback mechanics, with no specified timeframe, price, or volume limits. The buyback allows opportunistic repurchases subject to financial and regulatory considerations, reinforcing the company's commitment to optimizing shareholder returns from Catalyst Technologies proceeds.

Company Profile and Sustainable Technology Leadership

Johnson Matthey is a global leader in sustainable technologies with over 200 years of experience in advanced metals chemistry. Employing around 10,500 professionals, it collaborates with customers worldwide to tackle climate change, energy supply, and resource scarcity. Its expertise supports leading energy, chemicals, and automotive firms in decarbonization and emissions reduction.

The sale of Catalyst Technologies to Honeywell represents portfolio refinement rather than exit from catalysts. The remaining group continues to focus on sustainable technology and metals chemistry, using the capital return to strengthen financial health and shareholder returns. The company’s engagement with decarbonization trends supports long-term growth and underpins the capital return strategy.

Expected Timetable and Payment Schedule

Key dates include the last dealing in existing shares at 4:30 p.m. on 14 August 2026, with dividend record time at 6:00 p.m. the same day. New shares will begin trading at 8:00 a.m. on 17 August 2026. CREST accounts will be credited shortly thereafter, and share certificates dispatched on 28 August 2026. The Dividend Reinvestment Plan (DRIP) will start acquiring new shares on 28 August 2026.

For ADR holders, ex-dividend marking and share consolidation occur at 9:00 a.m. (New York time) on 9 September 2026, with new ADS trading commencing simultaneously. This staggered schedule ensures smooth processing across UK and US markets.

Dividend Reinvestment Plan and Handling of Fractional Shares

Shareholders may opt to reinvest their special dividend via the DRIP by 5:30 p.m. on 14 August 2026. DRIP purchases will reflect the post-consolidation share price and capital structure, providing a cost-effective way to maintain or increase holdings without market transactions.

Fractional shares from consolidation will be sold by company agents. Proceeds of £5 or less will be retained by Johnson Matthey; amounts above will be paid to shareholders. No fractional entitlement will exceed one new share in value. Payments for fractional entitlements over £5 are expected on 28 August 2026, alongside dividend payments and share certificate dispatch.

Ongoing Shareholder Returns Policy and Future Capital Allocation

Johnson Matthey reaffirms its policy to deliver at least £200 million annually in shareholder returns for 2026/27 and beyond, split between dividends and buybacks. This baseline operates independently of the special £1 billion return from the Catalyst Technologies sale, ensuring sustained distributions from operational earnings.

The combined extraordinary return and ongoing policy highlight confidence in financial strength and cash flow. The board has structured the special dividend to preserve ordinary dividends and capital flexibility for reinvestment, debt management, and strategic initiatives. Investors await clarity on 2026/27 ordinary dividend guidance following the special return and full-year results.