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Highlights:

  • VCT reports 8% YoY increase in Q3FY24 volumes, led by Sustainable Solutions
  • VCT average selling price falls to GBP 68/kg, revenue declines 3% YoY
  • VCT's Medical segment underperforms due to Spine and pricing headwinds

Victrex plc (LSE:VCT), a global provider of high-performance polymer solutions, released its trading update for the third quarter ending 30 June 2025. The company posted an 8% year-on-year increase in sales volumes, led by growth across its Sustainable Solutions portfolio. However, overall revenue declined by 3% due to a lower average selling price (ASP) and weaker performance in the Medical segment.

Sales volumes rose 8% compared to Q3FY24, primarily driven by applications in the Energy & Industrial sectors and through value-added resellers (VARs). Aerospace and Automotive remained stable, while Electronics showed gains on a year-to-date basis.

Despite this volume growth, revenue declined year-over-year as ASP fell to GBP 68/kg, compared to GBP 76/kg in the same period last year. The drop in ASP was attributed to a combination of factors, including weaker Medical sales, a shift in product mix, and competitive pricing, particularly in the VARs segment.

Currency movements also weighed on pricing, accounting for nearly one-third of the ASP decline during the quarter. Management noted that if current pricing and mix trends continue, second-half underlying profit before tax (PBT) would likely remain in line with first-half levels.

Victrex’s Medical division continued to underperform in Q3. Although non-Spine applications within the segment experienced some growth, it was not enough to offset declines in the Spine category. The company cited multiple headwinds, including reduced demand from industry destocking, the effects of China’s Volume Based Pricing (VBP) policy, and increased competition from alternative materials in the U.S. market.

These factors combined to reduce the division’s contribution to overall revenue, contributing to both the lower ASP and the softer top-line performance in Q3FY24.

Victrex reported that its China-based manufacturing facility saw improved production throughput during Q3FY24. Initial scale-up issues are gradually being addressed, and shipments to customers have commenced.

Meanwhile, progress continued in the company’s long-term “mega-programmes.” In particular, the U.S. clinical trial for its PEEK Knee solution reached a milestone with the first surgeries performed. Globally, 65 patients have now received implants under the programme, spanning Europe, India, and the U.S.

The Magma subsea programme, a collaboration with TechnipFMC, also advanced during the period. Following a technological order award from Petrobras, Victrex is supporting extrusion and qualification work for pipe systems.

The negative currency impact on PBT is now estimated at GBP 9 million, at the higher end of previously provided guidance. Management also flagged that, based on current rates, FY26 currency impact could be an additional GBP 3–4 million adverse compared to FY25.

To mitigate this, Victrex has hedged over 50% of its U.S. dollar and Euro exposure for FY26, with coverage expected to rise to approximately 75% by 30 September.

Capital expenditure is tracking toward the lower end of the company’s 8–10% of revenue guidance. Net debt stood at GBP 42.8 million as of 30 June 2025, slightly above the prior year’s figure of GBP 39.6 million. The company held GBP 19.7 million in cash at the end of the quarter, after paying its interim dividend.

As of 8 July 2025, Victrex shares were down 9.29%, trading at GBX 713.00 per share.