UK's Volex H1 revenue rises 24% on EV, data centre strength
UK's Volex H1 revenue rises 24% on EV, data centre strength
Overview
UK critical power component maker's H1 revenue rose 23.9% on strong organic growth
Underlying operating profit for H1 rose 40.9%, with margin expanding to 11.1%
Company completed KST acquisition and £20 mln share buyback in the half
Outlook
Volex expects second-half revenue to be broadly in line with first half, excluding c.$10 mln brought forward
Company says full-year expectations, as upgraded in October, are unchanged
Volex reiterates medium-term targets of $2 bln revenue, 12% underlying operating margin and 20% ROCE
Result Drivers
EV & ELECTRIFICATION GROWTH - Organic growth of 46.8% driven by increased share of largest EV customer's requirements and new energy storage programmes
DATA CENTRE & COMPLEX INDUSTRIAL DEMAND - Data Centre revenue grew 47% organically, aided by strong demand from hyperscale customers and buffer stock build-up for US site consolidation
KST ACQUISITION - Acquisition of remaining 64.3% of KST contributed $11.3 mln revenue and expanded Medical segment into patient-to-device cables
Company press release: ID:nRSL7930Ca
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted EBIT |
| $80.60 mln |
|
H1 Adjusted EBIT Margin |
| 11.10% |
|
H1 Adjusted Pretax Profit |
| $69.40 mln |
|
H1 EBIT |
| $59.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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 GBp720.00, about 27% above its November 11 closing price of GBp567.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Nov 10 - UK's Oxford Instruments H1 revenue rises on strong demand for compound semiconductors
Nov 10 - German photonics group Jenoptik's 9-month sales, profit rise on strong demand, cost cuts
Nov 10 - Netherlands' TKH Group Q3 turnover rises on growth in automation and electrification segments, reiterates 2026 outlook
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(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.)