Volex plc (LSE: VLX), the specialist integrated manufacturer of critical power and data transmission products, has reported record first-half results for the period ended 30 September 2026, with group revenue rising 23.9% to $723.6 million. Underlying operating profit climbed 40.9% to $80.6 million, with the underlying operating margin expanding 130 basis points to 11.1%. The board confirmed its full-year expectations are unchanged following a positive start to the second half, and declared an interim dividend of 1.7 pence per share, up 6.3% year-on-year.

Key Points

  • Volex plc (LSE: VLX) — specialist integrated manufacturer of critical power and data transmission products, listed on the Main Market and a FTSE 250 constituent
  • Group revenue grew 23.9% to $723.6 million in H1 FY2027, with organic growth of 23.6% at constant exchange rates across all five end-markets
  • Underlying operating margin expanded to 11.1%; interim dividend increased to 1.7p per share; covenant leverage stood at 1.1x under the $500 million committed facility
  • Investors should watch for the full KST integration progress, the anticipated ramp of next-generation high-speed data interconnects in FY2028, and second-half revenue delivery broadly in line with H1 excluding the c.$10 million pull-forward

EV & Electrification and Data Centre Lead Volex's 23.9% Revenue Growth to a Record $723.6m

Volex's five end-markets all contributed to H1 FY2027's record revenue. EV & Electrification delivered the strongest organic growth at 46.8%, driven by an increased share of the Group's largest EV customer's requirements and new energy storage programmes. Complex Industrial Technology grew 41.2% organically, with Data Centre revenues up 47.0% year-on-year. Off-Highway grew 12.6% organically despite a demanding prior-year comparative, while Consumer Electricals returned to 9.5% organic growth and Medical delivered modest organic growth of 1.8% following customer destocking. Regionally, North America grew 35.8% to $390.4 million, Europe grew 4.9% to $229.3 million, and Asia grew 33.5% to $103.9 million.

Underlying Operating Margin Reaches 11.1% as Volex Progresses Towards 12% Medium-Term Target

The underlying operating margin expanded 130 basis points to 11.1% from 9.8% in H1 FY2026, driven by operating leverage on strong organic growth, efficiency programmes, and an improved product mix including the contribution from Kepler SignalTek Limited (KST). Underlying operating profit increased 40.9% to $80.6 million, and underlying profit before tax rose 43.1% to $69.4 million. Underlying basic earnings per share grew 40.6% to 27.7 cents. Underlying free cash flow improved to $22.3 million from $4.8 million in the prior period. The board's medium-term targets — $2 billion in revenue, a 12% underlying operating margin, and a return on capital employed of around 20% — remain in place, as set out at the April 2026 Capital Markets Day.

Full Ownership of Kepler SignalTek and FTSE 250 Inclusion Mark Strategic Milestones for Volex

Volex acquired the remaining 64.3% of KST in July 2026, taking full ownership and extending its Medical business into patient-to-device cables, with KST contributing $11.3 million of additional revenue in the half. The acquisition generated a provisional non-cash gain of $26.8 million on remeasurement of the Group's previously held 35.7% interest, boosting statutory profit before tax to $75.4 million. Separately, Volex moved to the Main Market of the London Stock Exchange on 24 July 2026 and joined the FTSE 250 index on 21 September 2026. The £20 million share buyback programme was completed, returning £16.9 million ($22.7 million) to shareholders in the first half.

Board Keeps Full-Year Outlook Unchanged with Second Half Expected to Mirror H1 Excluding Pull-Forward Revenue

The board stated the second half has started well and that its full-year expectations, as upgraded at the October 2026 trading update, remain unchanged. Second-half revenue is expected to be broadly in line with first-half revenue, excluding the c.$10 million brought forward from H2 into H1, as that buffer-stock drawdown is offset by a full six months of KST contribution. Net debt before operating lease liabilities stood at $203.7 million, with covenant leverage at 1.1x, leaving substantial headroom under the Group's $500 million committed facility. The interim dividend of 1.7p per share will be paid on 7 January 2027 to shareholders on the register at 27 November 2026.