Volex (VLX) H1 2026 earnings summary

Executive summary

• Achieved 13% organic revenue growth in H1 FY2026, with total revenue of $584 million and operating margin at 9.8%, supported by strong performance in Data Centre, Electric Vehicles, and Off-Highway segments.

• Underlying operating profit rose to $57.2 million, with adjusted/underlying EPS up to 19.7c and return on capital employed at 20.2%.

• Strategic investments in capacity, automation, and geographic footprint, including new sites in Mexico and Indonesia, supported growth and cost optimization.

• Board strengthened with appointment of Dave Webster as Non-Executive Chairman, alongside other leadership changes.

• On track to deliver the five-year plan targeting $1.2 billion revenue by FY2027, despite macroeconomic and tariff headwinds.

Financial highlights

• H1 FY2026 revenue: $583.9 million, up 13% organically year-over-year.

• Underlying/adjusted operating profit: $57.2 million; EBITDA: $73.6 million, up 20%.

• Underlying basic EPS: 19.7c, up 29.6%; interim dividend increased to 1.6p per share.

• Operating margin at 9.8%, near the top of the 9-10% target range.

• Return on capital employed: 20.2%.

Outlook and guidance

• Second-half revenues and margins expected to be broadly in line with H1, with full-year and five-year plan targets reaffirmed.

• Diversified end-market exposure and strong balance sheet position the group to navigate macroeconomic and tariff-related disruptions.

• Ongoing focus on organic growth, disciplined acquisitions, and margin improvement.

• Tariff-related uncertainty and macroeconomic headwinds expected to persist short-term, but long-term growth drivers remain strong.