Business
Trading Update
Volex plc reported a strong third quarter, with nine-month revenue to December 2025 reaching $902.7 million, a 14.8% organic constant currency growth, driven by significant demand in Complex Industrial Technology, particularly from Data Centres. Underlying operating margins remained robust, near the upper end of the 9-10% target range, supported by effective cost control and operational efficiencies. The company's net debt reduced to approximately 1.0x covenant leverage, indicating a strong balance sheet that supports continued investment. Volex now expects full-year revenue and underlying operating profit to exceed current market consensus, reflecting positive momentum and confidence in its diversified end markets. Disclaimer*
About this update from Volex Plc
[{"type":"text","content":"\n\n\n \n21 January 2026\nVolex plc\n(\"Volex\", the \"Company\", or the \"Group\")\nTrading update\n \nFurther outperformance in Q3 supports increased expectations for the full year\n \nVolex 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.\n \nThe 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%.\nThe 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.\nAcross 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.\nUnderlying 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.\nFinancial position supports continued investment for growth\nThe Group's balance sheet remains robust. Net debt reduced further through to December 2025, with covenant leverage1 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.\nImproved outlook for FY2026\nThe strong momentum, and good visibi...