Morgan Advanced Materials released a trading update on Thursday showing resilient top-line momentum in the opening quarter of 2026. The company recorded 6.2% organic sales growth on a constant currency basis in Q1 and said it remained comfortable with its full-year guidance.
Management described order intake during the quarter as broadly stable across the company’s divisions and end markets, contrasting with a 3.5% decline in orders in the same period a year earlier. The group reported no material direct or indirect impact from the Middle East conflict during the quarter.
To manage inflationary pressures, Morgan said it is implementing pricing adjustments. For the full year 2026 the company reiterated expectations for organic constant currency sales growth of between 1% and 2% and an adjusted EBITA margin of approximately 10%.
The company also confirmed that its strategic review of the Thermal Products division remains ongoing. Separately, Morgan announced that Chief Financial Officer Richard Armitage has informed the board of his intention to retire and will step down during the first half of 2027. The company has begun the process of identifying and appointing a successor.
Context and implications
The trading update highlights a rebound in underlying sales volumes compared with the prior-year quarter and indicates the business saw steady demand across its portfolio in Q1. Morgan’s decision to adjust pricing is intended to mitigate input-cost pressures and preserve margins, consistent with the company’s reiterated adjusted EBITA margin target for 2026.
The ongoing strategic review of the Thermal Products division and the announced CFO retirement mark two material corporate developments the market will be watching as the year progresses.
Key facts
- Q1 2026 organic constant currency sales growth: 6.2%.
- Prior year period order intake: -3.5%.
- Full-year 2026 guidance: organic constant currency sales growth of 1% to 2% and an adjusted EBITA margin of approximately 10%.
- No material direct or indirect impact reported from the Middle East conflict during Q1.
- CFO Richard Armitage plans to retire and will step down during H1 2027; a search for his successor is underway.