Volex (VLX) Trading update summary

Trading performance and revenue growth

• Achieved $902.7 million in revenue for the nine months to December 2025, reflecting 14.8% organic constant currency growth year-on-year.

• Complex Industrial Technology segment saw particularly strong growth, driven by elevated demand from Data Centre customers and global AI investment.

• Electric Vehicles and Off Highway segments delivered organic revenue growth, though Electric Vehicles growth moderated in Q3.

• Medical and Consumer Electricals revenues were lower year-on-year due to destocking and weaker demand in Europe.

Margins, financial position, and investment

• Underlying operating margins remained strong, at the upper end of the 9-10% target range, supported by pricing discipline and operational efficiencies.

• Net debt reduced further, with covenant leverage around 1.0x, reflecting strong cash generation and disciplined working capital management.

• Robust balance sheet enables continued investment in capacity expansion, automation, vertical integration, and disciplined M&A.

Outlook and guidance

• Full year revenue is now expected to exceed current market consensus, with sustained underlying operating margins.

• Board has increased expectations for underlying operating profit for the full year.

• Good momentum and visibility into the final quarter support confidence in achieving five-year plan targets and delivering long-term shareholder value.

• As of 19 January 2026, analyst consensus for FY2026 revenue is $1,152.3 million and underlying operating profit is $112.7 million.