Victrex (VCT) Investor presentation summary

Strategic positioning and market opportunities

• Leading expertise in PEEK polymers with diversified end-market exposure and alignment to global megatrends, targeting a market opportunity over five times current levels.

• Unique manufacturing integration and innovation leadership, with well-invested assets and a highly cash-generative business model delivering sector-leading returns.

• PEEK applications span aerospace, automotive, medical, energy, electronics, and industrial sectors, with significant growth potential in each.

• Expansion in China with a new facility to serve Greater China, supporting medium and long-term growth, especially in auto, electronics, and VAR.

Financial performance and outlook

• FY25 revenue grew 1% to £292.7m, with underlying profit before tax down 21% to £46.4m due to FX, China start-up costs, and adverse sales mix.

• Strong volume growth (+12%) offset by FX and China costs; cash conversion at 121% and free cash flow of £49.3m.

• Net debt at £24.8m (net debt/EBITDA 0.34x); capex reduced by 33% to £21.8m, now 7% of revenues.

• FY26 guidance targets low- to mid-single digit volume growth, gross margin similar or slightly ahead of FY25, and at least £10m in cost savings by FY27.

Operational initiatives and cost management

• Profit Improvement Plan aims for at least £10m in cost savings, focusing on procurement, portfolio simplification, and operational efficiency.

• Recruitment freeze, lower capex, and leveraging ERP and digital efficiencies to create a leaner organization.

• Mega-programmes in e-mobility, aerospace composites, trauma, and knee implants progressing, with commercial revenues and new platform launches.