REG - Volex PLC - Trading Update

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RNS Number : 6755P  Volex PLC  21 January 2026

 

21 January 2026

Volex plc

("Volex", the "Company", or the "Group")

Trading update

 

Further outperformance in Q3 supports increased expectations for the full year

 

Volex plc (AIM: VLX), the specialist integrated manufacturer of critical power
and data transmission products, is pleased to report a trading update for the
nine months ended 31 December 2025.

 

The Group delivered a strong performance through the third quarter, building
on the momentum reported at the half year. For the nine months to December
2025, Group revenue was $902.7 million, representing year-on-year organic
constant currency growth of 14.8%.

The Group benefitted from particularly strong growth in Complex Industrial
Technology, supported by continued, elevated demand from Data Centre
customers. This reflects continued global investment in AI and digital
infrastructure, supported by growth from other industrial customers remaining
robust.

Across the Group's other end markets, revenues for the quarter were broadly
consistent with the trends noted during the first half of the year. Electric
Vehicles and Off Highway both generated organic revenue growth in the
nine-month period, although Electric Vehicles organic growth moderated in Q3
due to a stronger comparative period. Although sequential performance in
Medical and Consumer Electricals was stable, revenues were lower than the
comparative nine-month period due to the ongoing impact of trading headwinds
noted at the half year, namely destocking at a major medical customer and
weaker demand for consumer appliances for the Group's European customers.

Underlying operating margins remained strong, around the upper end of the
Group's 9-10% target range year-to-date, supported by pricing discipline,
operational efficiencies and effective cost control.

Financial position supports continued investment for growth

The Group's balance sheet remains robust. Net debt reduced further through to
December 2025, with covenant leverage(1) now around 1.0x, reflecting continued
cash generation and disciplined working capital management. This provides
flexibility to continue investing in growth, including capacity expansion,
automation, further vertical integration in support of customer demand and
disciplined M&A.

Improved outlook for FY2026

The strong momentum, and good visibility through to the financial year-end
provides the Board with confidence in delivering full year revenue ahead of
current market consensus(2). Underlying operating margins are projected to be
sustained, also driving an increase in the Board's expectations for underlying
operating profit(3) for the full year.

While mindful of ongoing macroeconomic uncertainty and the evolving demand
environment in certain end markets, the Group's exposure to diversified,
structurally attractive sectors, combined with a global manufacturing
footprint and strong customer relationships, supports the Board's confidence
in delivering sustainable, profitable growth and long-term shareholder value.

Nat Rothschild, Chief Executive Officer of Volex, said:

"Our year-to-date performance reflects strong execution across the Group and
the benefits of our exposure to structurally attractive markets. Demand from
Data Centre customers has been particularly strong, driven by sustained
investment in AI and digital infrastructure.

We continue to invest with discipline, maintain strong margins and a robust
balance sheet. With good momentum into the final quarter, we now expect to
exceed current market expectations, thereby giving increased confidence in
achieving our five-year plan targets. Looking further out, we remain well
positioned to deliver sustainable, long-term value for shareholders."

-ENDS-

( )

( )

(1) Covenant leverage represents the ratio of net debt, excluding operating
lease liabilities, to EBITDA excluding the impact of right of use amortisation
arising on operating lease arrangements and pro-rated for acquisitions and
disposals. This measure is aligned with the covenant calculations used for
external debt facilities.

 (2) As at 19 January 2026, the average of company compiled analysts'
forecasts for the year ending 31 March 2026 for revenue is $1,152.3 million
with a range of $1,145.1 million to $1,167.4 million, the average for
underlying operating profit is $112.7 million, with a range of $111.7 million
to $114.9 million.

(3) Underlying operating profit is before adjusting items which are one-off in
nature and significant (such as restructuring costs, impairment charges or
acquisition-related costs), the amortisation and impairment of acquired
intangible assets and share-based payment charges. This trading update is
based upon unaudited management accounts information. Forward-looking
statements have been made by the Directors in good faith using information
available up until the date that they approved this statement. Forward-looking
statements should be regarded with caution because of the inherent
uncertainties in economic trends and business risks.

 

 

For further information please contact:

Volex plc                                                                                                      +44 (0) 1256 442570

Nat Rothschild, Chief Executive Officer
                          investor.relations@volex.com

Jon Boaden, Chief Financial Officer

 

Peel Hunt LLP - Nominated Adviser & Joint Broker
                       +44 (0) 20 7418 8900

Ed Allsopp

Dom Convey

Tom Graham

 

Jefferies - Joint
Broker
 
                +44 (0) 20 7029 8000

Philip Noblet

Sam Barnett

Harry Le May

Sodali & Co. - Media
Enquiries
+44 (0) 20 7250 1446

James White

Nicholas Johnson

About Volex plc

Volex plc (AIM:VLX) is a driving force in integrated manufacturing for
mission-critical applications and a global leader in power and data
connectivity solutions. Our diverse operations support international blue-chip
customers in five key end-markets: Electric Vehicles, Consumer Electricals,
Medical, Complex Industrial Technology and Off-Highway. Headquartered in the
UK, we orchestrate operations across 25 advanced manufacturing facilities,
uniting 13,000 dynamic individuals from 25 different nations. Our
extraordinary products find their way to market through our localised sales
teams and authorised distributor partners, supporting Original Equipment
Manufacturers and Electronic Manufacturing Services companies across the
globe. In a world that grows more digitally complex by the day, customers
trust us to deliver power and connectivity that drives everything from
household essentials to life-saving medical equipment. Learn more at
www.volex.com.

Forward looking statements

This announcement contains certain forward-looking statements which have been
made by the Directors in good faith using information available up until the
date they approved the announcement. Forward-looking statements should be
regarded with caution as, by their nature, such statements involve risk and
uncertainties relating to events and circumstances that may occur in the
future. Actual results may differ from those expressed in such statements,
depending on the outcome of these uncertain future events.

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