Volex (VLX) Trading Update summary

Financial performance and revenue momentum

• Revenue for the first half expected to exceed $575 million, with at least 11% organic growth driven by product offering and strong customer relationships across five end-markets.

• Electric Vehicles segment showed strong year-on-year growth, while Medical demand was subdued due to lower healthcare spending and inventory adjustments.

• Consumer Electricals revenue remained stable compared to H2 FY2025 but declined organically versus a strong H1 FY2025; Off-Highway benefited from a one-off project, and Complex Industrial Technology saw significant growth, especially in data centre demand.

Margin resilience and operational strategy

• Operating profit margin is expected to remain in the upper half of the 9-10% target range, reflecting effective cost management and ongoing investment in capacity and capabilities.

• Tariff-related changes in the trading environment are creating opportunities, with key customers reconfiguring global production, strengthening relationships and competitive positioning.

• Some new programme launches in Complex Industrial Technology and Electric Vehicles have been deferred due to manufacturing relocations, with delivery expected in FY2027 and beyond.

Outlook and strategic positioning

• Second-half revenues are expected to be broadly similar to the first half, indicating stable trading across most end-markets.

• Operational discipline, cost control, and margin consistency support confidence in achieving five-year plan targets.

• Strong balance sheet and access to funding position the group to pursue value-accretive acquisitions.

• Structural demand, a diversified customer base, and continued investment in capabilities underpin confidence in delivering strong returns despite macroeconomic challenges.

• Full-year expectations remain unchanged.