UK's Volex FY revenue rises 14% on data centre demand
UK's Volex FY revenue rises 14% on data centre demand
Overview
UK connectivity systems maker's preliminary FY2026 revenue rose 14%, driven by Data Centre demand
Adjusted operating profit up 20%, with margin above previous target range
Company cites operational efficiencies and improved product mix for profit growth
Outlook
Company says trading to date in FY2027 has been strong and in line with expectations
Demand across key end-markets remains robust, supported by good forward visibility
Volex confident to meet medium-term targets of revenue of $2 bln and 12% underlying operating margin
Result Drivers
DATA CENTRE DEMAND - Strong demand from Data Centre customers, particularly hyperscale clients expanding AI infrastructure, was the largest contributor to revenue growth
OFF-HIGHWAY GROWTH - Off-Highway segment delivered 20% organic revenue growth, supported by a significant defence vehicle programme, ramp up in North America, and continued growth in India
PRODUCT MIX & EFFICIENCIES - Improved product mix, operational efficiencies, and higher-value complex products contributed to margin expansion and profit growth
Company press release: ID:nRSY6505Ja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| $1.24 bln |
|
FY Adjusted EBIT |
| $127.30 mln |
|
FY Adjusted EBIT Margin |
| 10.20% |
|
FY Adjusted Pretax Profit |
| $108.40 mln |
|
FY EBIT |
| $121 mln |
|
FY Net Debt |
| $152.30 mln |
|
FY Pretax Profit |
| $93.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Volex PLC is GBp670.00, about 15.1% above its June 24 closing price of GBp582.00
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)