Victrex Shares Surge Despite Q1 Revenue Dip; Full-Year Guidance Maintained

Victrex plc (LON: VCT), a leader in high-performance polymer solutions, saw its shares jump 6% this morning despite reporting a decline in first-quarter revenue.

The market's positive reaction stems from reaffirmed full-year guidance and optimism surrounding the company's profit improvement plan.

The company's Q1 2026 trading update, covering the period from October 1, 2025, to December 31, 2025, revealed a 4% decrease in sales volume, falling to 858 tonnes from 898 tonnes in the same period last year.

Revenue also experienced a 6% drop, settling at £62.4 million compared to £66.6 million in Q1 2025. The average selling price (ASP) saw a minor decline of 2%, landing at £73 per kg.

Year-to-date (YTD) volumes, covering the four months ended January 31, 2026, are in line with the prior year, reflecting a recovery in January after a weaker December. YTD revenues are slightly lower, primarily due to changes in sales mix. The company reiterated that its FY 2026 performance is expected to be heavily weighted towards the second half of the year.

The Energy & Industrial segment continues to be a bright spot, exhibiting healthy activity levels. Value Added Resellers (VARs) experienced a slow start to the quarter but have since gained momentum, with YTD volumes now exceeding the prior year. Medical revenues remain slightly below last year's levels on a YTD basis, although January saw the typical seasonal improvement.

Victrex's financial position remains stable, with net debt at £21.1 million and cash reserves of £28 million as of December 31. This is before the payment of the FY 2025 final dividend of 46.14p per share, totaling approximately £40 million. Total dividends per share for FY 2025 amounted to 59.56p.

The company's Profit Improvement Plan, targeting annualised cost savings of at least £10 million by FY 2027, is progressing rapidly. The plan focuses on portfolio simplification, operating efficiency, and overhead cost reduction, with initial benefits expected in the latter half of H2 2026. An update on the plan's progress will be provided during the interim results.

Dr. James Routh, Chief Executive Officer of Victrex, said, “The start of FY 2026 reflected usual Q1 seasonality, alongside a subdued performance across some end-markets. On a year to date basis, our second quarter started solidly, with YTD volumes now in line with the prior year. Whilst we continue to be mindful of wider macroeconomic conditions, our full year guidance remains unchanged. As previously communicated, performance will be weighted to the second half. The first half is expected to be weaker than the prior year.”

He added, “FY 2026 will be a transitional year, with our Profit Improvement Plan helping us become a more efficient, growth focused and performance oriented company.”

Key Drivers:

• Energy & Industrial Strength: Continued strong performance in the Energy & Industrial sector is offsetting weakness in other areas.
• VAR Recovery: Momentum in Value Added Resellers is improving, with YTD volumes now ahead of the prior year.
• Profit Improvement Plan: The market is reacting positively to the potential for significant cost savings in the coming years.