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Shares in Morgan Advanced Materials PLC on Tuesday fell as it issued its second downbeat trading update in three months, warning of increasing uncertainty in European industrial markets. The Windsor England-based manufacturer of carbon and ceramic materials said demand in semiconductor markets has remained weak as a result of customer inventories, resulting in further orders being pushed into 2026 and lower than expected revenue in 2025. ‘We also note increasing uncertainty in European industrial markets’, the company added, noting it will focus on ‘strong cost management and simplification of our business’. The firm now expects full-year sales to be around 4% lower than £1.10 billion reported in 2024 on an organic constant currency basis. In addition, the firm expects adjusted operating profit margin of around 10% in 2025, down from 11.7% in 2024, reflecting under-recovered costs from lower sales volumes in the short-term, a weaker mix and some foreign exchange impact. In response, shares in Morgan Advanced Materials fell 6.4% to 204.50 pence each in London on Tuesday morning. The company said sales were 3.6% lower for the first nine months of 2025 than last year, on an organic constant currency basis. Revenue for the third quarter was 1.6% higher than the third quarter last year, continuing to reflect signs of stabilisation in a number of end markets. In August, the company warned full-year profit would be at the bottom end of market expectations reflecting weak and challenging markets. At the time, the company said it expected adjusted operating profit to be around the bottom of the £115.6 million to £126.3 million consensus range. This was a result of ‘weak’ market conditions, mix effects and foreign exchange headwinds, and would be down 10% at worst from £128.4 million in 2024. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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