Volex (VLX) H1 2025 earnings summary

Executive summary

• Revenue grew 30.4% year-over-year to $518.2m in H1 FY2025, with 9.7% organic growth and strong performance in Electric Vehicles and Consumer Electricals.

• Underlying operating margin reached 9.2%, within the 9-10% target range for the fifth consecutive year.

• Integration of Murat Ticaret progressing well, supporting expansion and diversification in Off-Highway and North America.

• Expanded manufacturing footprint with new facilities in India, Mexico, and Indonesia, and further expansions planned in Turkey and Mexico.

• Board remains confident in meeting full-year expectations and five-year plan targets, aiming for $1.2bn revenue by FY2027 at a 9-10% margin.

Financial highlights

• Underlying operating profit rose 27.3% year-over-year to $47.6m; revenue reached $518.2m, with 9.7% organic growth.

• Underlying EBITDA improved by 31% to $61.3m; net debt at 1.3x EBITDA, consistent with last year.

• Interim dividend increased by 7.1% to 1.5p per share, marking the fifth consecutive annual increase.

• Free cash outflow of $11.5m due to higher working capital and increased CapEx, with cash generation expected to improve in H2.

• Return on capital employed at 19.6%, up from 14.3% in H1 FY2023.

Outlook and guidance

• Full-year performance expected to be in line with expectations; strong momentum in EV and Consumer Electricals.

• Five-year plan on track, requiring 6% growth to reach $1.2bn revenue target by FY2027.

• Continued operational and capital investments to support long-term growth.

• Organic growth to continue, though H2 comparatives will be tougher due to prior-year destocking.

• Confidence in delivering 9–10% underlying operating margin and $1.2bn revenue by FY2027.