Volex (VLX) H2 2025 earnings summary

Executive summary

• Achieved strong organic growth of 11.1% and delivered at the top end of margin guidance, with revenue reaching $1,086.5m and robust performance across diversified end markets.

• Maintained underlying operating margin at 9.8%, with ongoing integration of Murat Ticaret focused on productivity enhancements.

• Expanded manufacturing footprint, optimized locations, and invested in Centres of Excellence to support growth and efficiency.

• Maintained deep customer relationships and onboarded new customers, supporting future growth in key sectors such as data centers, EV, and defense.

• Successfully delivered on strategic plan, positioning for continued growth and resilience.

Financial highlights

• Revenue increased to $1,086.5m in FY2025, up 19% year-over-year, with organic revenue growth of 11.1%.

• Underlying EBITDA reached nearly $135 million, up 21% year-over-year.

• Underlying operating profit rose to $106.2m, up 18.4% from the previous year.

• Basic underlying EPS at $0.363 per share, an 11% CAGR since FY2022.

• Underlying free cash flow was $42.2m, with capex at $45m (4.2% of revenue).

Outlook and guidance

• On track to achieve the five-year plan of $1.2 billion revenue and 9%-10% operating margins by FY 2027.

• Only 5% annual organic growth needed over the next two years to meet targets.

• Revenue ahead of budget in the first two months of FY 2026, with a healthy pipeline of growth opportunities.

• FY2026 guidance includes capex at 3-4% of revenue, effective tax rate of 23-24%, and adjusting items of $15m-$20m.

• External guidance remains cautious given the challenging economic environment.