Volex Maintains Momentum with Strong H1 Revenue Growth, Outlook Unchanged

Volex plc (LON: VLX) has released a positive trading update for the six months ended September 30, 2025, showcasing robust revenue growth and sustained margin resilience.

The specialist integrated manufacturer of critical power and data transmission products affirmed its full-year expectations, providing reassurance in a challenging macroeconomic environment.

Revenues are projected to exceed $575 million, fueled by organic revenue growth of at least 11%. This growth is attributed to the Group's diverse product portfolio and established relationships with blue-chip clients across its five key end-markets.

The Electric Vehicles segment experienced substantial year-on-year expansion, driven by an increasingly diverse range of products and customers. Conversely, the Medical sector saw demand soften as customers adjusted inventory levels in response to lower healthcare and research spending.

Consumer Electricals revenue remained consistent with the second half of FY2025, but declined organically compared to a strong first half in the previous year.

Off-Highway demonstrated significant growth, boosted by a one-off customer project completed during the period. Complex Industrial Technology also expanded considerably, with data center demand exhibiting a notable increase compared to the first half of FY2025.

Volex expects its operating profit margin for the first half to remain within the upper half of its target range of 9-10%. The company's consistent margin performance reflects its ability to manage regional cost pressures while continuing to invest in capacity and capabilities to support customer needs.

The ongoing evolution of tariffs is said to present an opportunity for Volex, and the Group is collaborating with key customers to reconfigure their global production footprints.

This proactive approach is strengthening customer relationships and enhancing Volex's competitive position in the medium term. The launches of a few new programs in Complex Industrial Technology and Electric Vehicles have been temporarily delayed due to manufacturing relocation in support of customers. These projects are now expected to be delivered in FY2027 and beyond.

The Group anticipates second-half revenues to be broadly in line with the first half, indicating stable trading across most end-markets. Management continues to focus on operational discipline, cost control, and margin consistency, providing confidence in achieving its five-year plan targets.

With a strong balance sheet, significant undrawn facilities, and access to funding, Volex believes it is well-positioned to pursue value-accretive acquisitions that align with its investment criteria.

Structural demand in its key markets, a diversified customer base, and ongoing investment in capability expansion support the Group's confidence in delivering strong returns for all stakeholders.

Volex expects to release its interim results on November 12, 2025.