Image source: Shutterstock

Highlights

  • Full-year revenue hits $1.06 billion, up 16% year-on-year, driven by Q4 momentum.

  • Operating profit of at least $100 million expected—surpassing top-end market forecasts.

  • Strategic investments and sector diversity position Volex for continued growth in FY2026.

Volex plc (LSE:VLX), a global manufacturer specializing in critical power and data transmission products, has announced a trading update for the financial year ended 30 March 2025, revealing a surge in revenue and profitability that surpasses market expectations.

Driven by a particularly buoyant fourth quarter, Volex expects full-year revenue to reach at least $1.06 billion—marking a 16% increase from the previous year. On an organic basis and at constant currency, the growth stands at a minimum of 8%. The Group anticipates underlying operating profit of no less than $100 million, exceeding analysts’ upper-end forecasts, with margins projected at the higher end of the targeted 9% to 10% range.

This performance has been underpinned by Volex’s ability to secure high-value contracts through a combination of technical innovation and cost-effective manufacturing. A favourable shift in product mix, particularly demand for data centre components, contributed significantly to improved profitability in the second half of the year.

The Group’s organic growth reflects its well-established presence across a wide range of specialist sectors. Leveraging its technical expertise, Volex continues to meet complex client demands and is deeply embedded in global technology supply chains. This has led to new project wins and sustained quality delivery, especially in markets where customer loyalty is high and competition limited.

The Electric Vehicles (EV) and Consumer Electricals segments continued their positive trajectory, adding several new client relationships and setting the stage for growth into FY2026. Complex Industrial Technology also performed well, posting low double-digit organic growth, with data centre-related demand accelerating infrastructure investment from key customers in the closing months of the year.

While revenues in the Medical sector declined compared to last year—due to the absence of one-off orders seen in FY2024—the Group’s Off-Highway division made meaningful strides. Integration efforts in this segment led to planned efficiency gains, offsetting macroeconomic softness in select markets and resulting in stable organic revenue.

Throughout FY2025, Volex remained committed to expanding capacity and driving automation through targeted investment totaling approximately $45 million. These investments are closely aligned with evolving customer demands and provide scope for site consolidations in FY2026, paving the way for enhanced operational efficiency.