Volex Reports Revenue Growth, Announces Leadership Change

Volex plc (AIM: VLX) announced robust half-year results for the period ended September 30, 2025, showcasing organic growth and profitability.

Concurrently, the company revealed a strategic leadership transition, with Nat Rothschild assuming the role of Chief Executive Officer and Dave Webster appointed as Non-Executive Chairman.

The specialist integrated manufacturer of critical power and data transmission products reported a 12.7% increase in revenue, reaching $583.9 million, compared to $518.2 million in the prior year.

Organic growth stood at an impressive 13.0%, fueled by an 80% surge in data center sales.

Underlying operating profit jumped by 20.2% to $57.2 million, while statutory operating profit climbed 27.3% to $46.6 million. Underlying basic earnings per share increased by 29.6% to 19.7 cents, and statutory basic earnings per share soared by 47.1% to 15.3 cents.

The interim dividend was raised by 6.7% to 1.6 pence per share. The markets reacted positively to the news, with shares showing signs of increased investor confidence.

Volex demonstrated strong financial management, reducing net debt by 10.0% to $184.1 million. Excluding operating lease liabilities, net debt decreased by 2.0% to $151.2 million.

The company's focus on long-term investments in key advanced production sites is enhancing customer choice and optimizing costs, which is seen as a positive sign.

The company's performance was driven by several key factors. Electric Vehicles experienced strong organic growth of 13.1%, supported by an expanded product range and customer portfolio.

Complex Industrial Technology achieved excellent organic growth of 48.2%, bolstered by continued momentum in Data Centre products and a positive contribution from other Industrial customers. Off-Highway revenue growth was a strong 20.1%, benefiting from a one-off customer project.

However, not all sectors performed equally well. Consumer Electricals saw a decline of 6.3% in organic revenues, reflecting a strong comparative period. Medical organic revenues decreased by 9.9%, driven by reduced global spending on healthcare and research.

Nat Rothschild, Volex’s Chief Executive Officer, stated, “The first half of the year has seen another period of strong and disciplined execution, reflecting the effectiveness of our strategy and the resilience of our business model.”

He further added that the company's focus on five core markets, each supported by structural growth drivers, underpins its strength and resilience through diversification.

Looking ahead, Volex anticipates solid trading in the second half, with revenue expected to be broadly consistent with the first half.

The company's diverse end-market exposure, clear strategy, and strong execution underpin confidence in its ability to grow through the cycle and create long-term shareholder value. The markets will be keen to see if the new leadership team can continue to deliver.

Volex's global footprint, manufacturing flexibility, and strong customer relationships position it well to navigate potential macroeconomic and tariff-related disruptions. The Board reaffirmed its confidence in the Group's ability to deliver on full-year market expectations and achieve the targets set out in its five-year plan.