If you’ve been watching the johnson matthey share price lately, you know it feels like trying to read a map while driving through a London fog. One minute the stock is climbing on news of a leaner "New JM," and the next, it’s drifting as the market grapples with the slow death of the internal combustion engine.
Honestly, it's a bit of a rollercoaster.
As of mid-January 2026, the stock has been showing some surprising grit. For a company that makes most of its money from catalytic converters—the very thing electric vehicles (EVs) don’t need—you’d expect a total collapse. But the ticker JMAT on the London Stock Exchange just hit around 2,340p, having clawed back significant ground over the last few months. If you’re looking at the ADRs (JMPLY), we’re seeing prices hover near $62.76.
Why the sudden strength? It’s not because people started loving petrol cars again. It’s because the company finally stopped trying to be everything to everyone.
The Massive Pivot Behind the Johnson Matthey Share Price
For years, Johnson Matthey was the classic "industrial giant with an identity crisis." They were doing medical devices, battery materials, hydrogen, and chemicals. It was messy. Investors hated the lack of focus.
The turning point? A ruthless "retrenchment" led by the board. They sold off the Medical Device Components business. They pulled the plug on their ambitious battery materials dreams because they realized they couldn't out-muscle the Chinese giants. Then, they offloaded the Catalyst Technologies division to Honeywell for about £1.8 billion.
Basically, they’re stripping the car down to the chassis to make it faster.
Now, JM is essentially two things: a "cash cow" business making catalysts for traditional cars and a "growth bet" on hydrogen. This clarity is what’s supporting the johnson matthey share price right now. Investors can finally see where the money is coming from.
Breaking Down the Numbers
The half-year results for late 2025 were actually pretty decent. Pro forma underlying operating profit jumped 38% at constant currency. That’s a huge number for a 200-year-old company.
The Clean Air division—the one everyone says is dying—maintained a margin of 12.4%. They’re actually on track to hit 14% to 15% for the 2025/26 fiscal year. Even though global light-duty vehicle production is predicted to dip by about 5%, JM is getting more efficient. They are squeezing more profit out of every converter they sell.
What Most People Miss About the PGM Market
You can't talk about JM without talking about Platinum Group Metals (PGMs). They are one of the world’s largest recyclers of these things.
Most retail investors look at the stock and see a "car parts company." That’s wrong. JM is a chemistry and precious metals company. Every time the price of platinum, palladium, or rhodium moves, it ripples through the johnson matthey share price.
For instance, a $100 move in the price of platinum or palladium typically impacts their annual operating profit by about £1 million. It sounds small, but these metals are volatile. When they spike, JM’s margins look like genius; when they crater, it’s a long way down.
The company is currently building a new PGM refinery that should be fully operational by 2027. This isn't just a factory; it's a strategic fortress. By recycling more metal, they shield themselves from the crazy price swings of mining in places like South Africa or Russia.
✨ Don't miss: Why Climbing in Heels Still Matters for Your Career
The Hydrogen Hype vs. Reality
Hydrogen is the "sexy" part of the story, but let’s be real: it’s been a money pit for a long time.
Management has been under immense pressure to stop the bleeding. They’ve cut hydrogen investment by over 80% compared to their peak "green dream" phase. Instead of trying to build everything, they’re focusing on the "picks and shovels"—the membrane electrode assemblies and catalysts that make fuel cells work.
"We continue to expect to achieve operating profit breakeven in Hydrogen Technologies by the end of 2025/26."
That quote from their recent announcement is the holy grail for shareholders. If they actually stop losing money on hydrogen this year, the johnson matthey share price could see a major re-rating.
They’ve also shifted toward "bankable" projects. Think e-fuel plants in Texas or partnerships with Bosch for commercial trucks. They aren't betting on passenger cars going hydrogen anymore—they’re betting on heavy industry and shipping. That’s a much smarter play.
🔗 Read more: Omni Bridgeway News Today: Why the Legal Giant’s Strategy Shift Actually Matters
Analyst Sentiment: A Mixed Bag
If you look at the big banks, they aren't totally sold yet.
- Zacks currently has them as a "Hold" (Rank 3), though they give them an "A" for value and growth potential.
- Barclays technical analysis suggests the stock is in a "Bullish" phase but warned in January 2026 that it might be getting a bit overbought in the short term.
- The average price target from Wall Street sits around 2,194p, which is actually lower than where it’s trading now.
This suggests that while the company is doing the right things, the market is still skeptical about the long-term "terminal value" of a business that relies on fossil fuel exhaust.
The "Cash Return" Secret
Here is why the johnson matthey share price hasn't fallen off a cliff: the dividend.
They’ve been paying dividends for over 20 years. Even during the restructuring, they’ve kept the interim dividend steady at 22.0 pence. The forward yield is sitting around 1.8% to 3.5% depending on which exchange you're looking at and recent price moves.
But the real kicker is their goal of returning at least £200 million per year to shareholders through buybacks and dividends through 2028. For a company with a market cap of roughly £4 billion, that is a lot of cash coming back to you.
Actionable Insights for Your Portfolio
So, what do you actually do with this? If you’re holding or looking to buy, keep these specific triggers on your radar:
💡 You might also like: Nepotism Explained: Why Who You Know Still Matters More Than What You Know
- Watch the 2025/26 Full Year Results (Expected May 2026): This is the moment of truth. If the Hydrogen division isn't at breakeven by then, expect the stock to take a hit.
- Monitor the Honeywell Deal Completion: The sale of Catalyst Technologies is supposed to wrap up in the first half of 2026. Any delay here will cause jitters.
- The "Death Cross" and Technicals: The stock recently rallied, but it’s hitting resistance. If it fails to stay above 2,300p, it might drift back to the 2,100p level where analysts feel more comfortable.
- PGM Prices: If you see palladium prices surging due to geopolitical tension, JM is a natural hedge.
Ultimately, Johnson Matthey isn't the "dinosaur" people thought it was two years ago. It's a leaner, slightly more boring, but much more profitable business. It’s a classic value play in a market that’s often too obsessed with pure-play EV startups that don't actually make money.
The next few months are critical. If they hit their targets, "boring" might just be the most profitable thing in your portfolio.
Next Steps for Investors
- Check the PGM index: Look at the 30-day trend for Platinum and Palladium; if they are trending down, expect the share price to follow suit regardless of company news.
- Review the "Cash Target": JM has a goal of delivering £4.5 billion in cash by 2031. Track their progress in the next quarterly update to ensure they aren't falling behind on disposals.
- Set a Price Alert: Given the recent "overbought" signals from analysts, setting a buy-limit order near the 2,150p mark might offer a better entry point than chasing the current rally.