Shares of Victrex plc (LSE: VCT) fell more than 4% on Thursday, extending the stock’s 12-month decline to 32.56%, after the company released its first-quarter trading update for FY26. The high-performance polymer manufacturer reported lower volumes and revenue for the quarter ended 31 December 2025, alongside confirmation that earnings are expected to be weighted toward the second half of the financial year.

Q1 Volumes and Revenue Move Lower

Victrex reported sales volumes of 858 tonnes for the first quarter of FY26, marking a 4% decline from 898 tonnes in the prior-year period. Revenue for the quarter came in at GBP 62.4 million, down 6% year-on-year from GBP 66.6 million. The company said the outcome reflected growth in Energy & Industrial, offset by reduced activity across Transport, Medical, and Value Added Resellers (VARs).

Average selling price was reported at GBP 73 per kilogram, broadly in line with last year, with a marginal 2% decrease attributed mainly to sales mix rather than pricing pressure.

Year-to-Date Performance Shows Partial Recovery

For the four months ended 31 January 2026, Victrex stated that year-to-date volumes were in line with the prior year, with January activity recovering part of the weakness recorded in December. Year-to-date revenue, however, remained slightly below the prior year, primarily due to product mix effects.

Management reiterated that FY26 performance is expected to be weighted toward the second half, with H1 FY26 anticipated to trail H1 FY25, reflecting the softer end to Q1 and currency impacts concentrated earlier in the year.

Divisional Trends and Market Conditions

Within the Sustainable Solutions segment, Energy & Industrial continued to post higher activity levels. VARs experienced a slower start in Q1, although momentum improved early in Q2, resulting in year-to-date volumes now exceeding the prior year. Medical revenues remained slightly below last year on a year-to-date basis, with January showing a seasonal improvement.

Balance Sheet and Cost Measures

Victrex reported net debt of GBP 21.1 million at 31 December 2025, with cash of GBP 28 million, prior to the payment of the FY25 final dividend of 46.14 pence per share, totalling approximately GBP 40 million. Total dividends paid for FY25 amounted to 59.56 pence per share.

The company also confirmed progress on its Profit Improvement Plan, targeting annualised cost savings of at least GBP 10 million by FY27, with initial benefits expected in H2 FY26.

Victrex’s latest trading update highlights a softer start to FY26, with lower first-quarter volumes and revenue contributing to ongoing pressure on the share price. While year-to-date volumes have stabilised and management reiterated unchanged full-year guidance, near-term performance remains concentrated toward the latter half of the financial year as cost initiatives and market conditions evolve.

FAQs

Why did Victrex shares fall today?
The shares declined following a Q1 FY26 trading update that showed lower volumes and revenue compared with the prior year, alongside confirmation that first-half performance is expected to trail last year.

How did Victrex perform in Q1 FY26?
Sales volumes fell 4% to 858 tonnes, while revenue declined 6% to GBP 62.4 million. Average selling prices were broadly stable year-on-year.

Is Victrex maintaining its FY26 outlook?
Yes. The company confirmed that full-year guidance remains unchanged, with performance expected to be weighted toward the second half of FY26.