19 October 2026
Volex plc
("Volex", the "Company", or the "Group")
Half Year Trading Update
Record first half revenue with growth in every end-market and further margin progress; FY2027 profit expected to be towards the upper end of current market expectations
Volex plc (LSE: VLX), the specialist integrated manufacturer of critical power and data transmission products, today issues a trading update for the six months ended 30 September 2026.
Revenue and end-market performance
Trading in the first half was excellent, with year-on-year growth in every end-market. Group revenue for the first half is expected to be at least $710 million, including a contribution of approximately $11 million from Kepler SignalTek (“KST”), the acquisition of which completed in July 2026. On an organic constant currency basis, revenue is expected to have increased by at least 21% on the prior-year period.
As indicated in the Group's AGM statement in August, headline year-on-year growth rates have started to normalise from the 28% reported for the first four months of the year, as the Data Centre programmes that ramped up in the prior year annualise. Sequential trading remains the better guide, with first half revenue expected to be approximately 7% higher than in the second half of FY2026 on an organic constant currency basis.
Complex Industrial Technology again grew significantly year on year, led by strong growth in aerospace and defence applications, with commercial and industrial applications also growing. The consolidation of the Group's US manufacturing sites is progressing well and is on track to complete by the end of the financial year. To support continuity of supply through the transition, customers took additional deliveries in the first half to build buffer stock, bringing forward approximately $10 million of revenue that would otherwise have been expected in the second half. Data Centre revenues were well ahead of the prior-year comparator, although below the second half of FY2026. As indicated in the Group's trading update in March 2026, revenues in that period included a contribution from meeting customers' near-term capacity needs at a time when other suppliers were unable to do so. Having secured key components early, the Group was able to keep building while others were supply constrained, and temporarily increased its share of those customers' requirements. As anticipated, supply conditions have since normalised. Underlying demand for these products remains strong, and the transition to the next generation of higher-speed products, expected to ramp up during FY2028, is expected to support further growth. The Board's view of the medium and long term growth opportunity is unchanged.
Off-Highway grew well year on year, despite a prior-year comparator that benefited from a one-off customer project delivered in the first half of FY2026. Growth was led by higher demand from material handling customers and incremental sales in India, and agricultural demand also improved.
EV & Electrification grew very strongly, with revenues well ahead of both the prior year and the second half of FY2026. The increase came principally from a greater share of the requirements of the Group's largest EV customer, reflecting the Group's competitive position following its investment in vertical integration. Charging and energy applications with other customers also grew, supported by structural electrification trends.
Consumer Electricals returned to year-on-year organic growth, benefiting from the ramp-up of new projects with major global customers, particularly in domestic appliances, with revenues also ahead of the second half of FY2026.
Medical delivered modest organic growth, led by surgical and diagnostic applications, with demand conditions continuing to recover. The acquisition of KST broadens the Group's product offering into patient-to-device applications, and integration is progressing well and in line with plan.
Operating margin progressing towards the 12% medium term target
First half underlying operating profit1 margin is expected to show progress towards the Group's medium term target of 12%, reflecting an improving revenue mix, including the higher-margin contribution from KST, and further operational efficiencies. Operating expenses continue to be managed closely, with investment in capacity and capabilities focused on supporting the Group's medium term strategic plan.
Balance sheet and capital allocation
The Group’s balance sheet remains strong, with significant undrawn facilities and covenant leverage as at 30 September 2026 expected to be no more than 1.2x. The Group remains well placed to pursue value-accretive acquisitions that meet its investment criteria. As at 30 September 2026, the Group had repurchased and cancelled ordinary shares for a total consideration of £16.9 million as part of its £20 million on-market share buyback programme that commenced on 14 July 2026. The programme is expected to complete during the third quarter of FY2027.
Outlook
Second half revenues are expected to be broadly similar to the first half, after allowing for the revenue brought forward ahead of the US site consolidation, with current trading conditions expected to continue across most end-markets. The Board expects FY2027 underlying operating profit1 to be towards the upper end of current market expectations2.
Notice of half year results
The Group will announce its half year results on 12 November 2026.
1 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.
2 As at 16 October 2026, company compiled consensus of analysts' forecasts for the year ending 31 March 2027 is revenue of $1,386.2 million, with a range of $1,371.0 million to $1,437.2 million, and underlying operating profit of $150.4 million, with a range of $145.9 million to $153.3 million.
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
Sodali & Co. – Media Enquiries +44 (0) 20 7250 1446
James White, Peter Lambie, James Whitaker
About Volex plc
Volex plc (LSE: VLX) is a specialist integrated manufacturer of critical power and data transmission products. The Group serves international blue-chip customers in five end-markets: Complex Industrial Technology, Consumer Electricals, EV & Electrification, Medical and Off-Highway. Headquartered in the UK, Volex operates 25 manufacturing sites with a presence in 25 countries and employs approximately 13,000 people. Its products are supplied to Original Equipment Manufacturers and Electronic Manufacturing Services companies worldwide.
Volex is listed on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 index. 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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