Morgan Advanced Materials posted stronger-than-expected results in the second half of 2025, driven by resilient demand in defense and industrial applications. The company reported adjusted EBITDA of £118 million, up 7% year-on-year, with margin expansion despite input cost pressures.
- Adjusted EBITDA rose 7% YoY to £118 million in H2 2025
- Revenue reached £532 million, a 5% increase from H2 2024
- Gross margin improved to 42%, up from 40% in H1 2025
- Capital expenditure amounted to £34 million in H2
- Defense and industrial materials demand drove 12% volume growth in high-temperature applications
- Stock (MOM) showed no significant post-earnings movement
Morgan Advanced Materials delivered a robust second half of 2025, with adjusted EBITDA reaching £118 million, a 7% increase compared to the same period in 2024. Revenue came in at £532 million, reflecting a 5% rise, supported by sustained orders from defense contractors and industrial manufacturing clients across Europe and North America. The company attributed growth to improved operational efficiency and favorable pricing in high-performance ceramic and carbon-based materials. The results mark a continuation of the company’s strategic focus on niche, high-margin segments within the industrial materials sector. While input costs for raw materials remained elevated, particularly for specialty carbons, the company maintained gross margins at 42%, up from 40% in H1 2025, indicating effective cost management. Capital expenditure in H2 totaled £34 million, primarily directed toward automation upgrades at its UK and U.S. production facilities. The performance aligns with broader trends in defense spending, where governments in the U.S. and U.K. continued to prioritize advanced materials for aerospace and missile systems. Morgan’s portfolio of refractory materials and thermal barriers saw 12% year-on-year volume growth, especially in applications requiring high-temperature resistance. The stock, trading under the ticker MOM, remained stable post-earnings, with no significant market reaction observed. Investors appear to view the results as consistent with long-term expectations, particularly given the company’s exposure to defense and energy infrastructure projects. The industrial materials ETF (XLB) showed minimal movement, suggesting limited spillover impact.