Volex (VLX) H1 2025 earnings summary

Executive summary

• Revenue grew 30.4% year-over-year to $518.2m in H1, with 9.7% organic growth, driven by strong performance in Electric Vehicles and Consumer Electricals, and supported by the Murat Ticaret acquisition.

• Underlying operating margin reached 9.2%, within the 9%-10% target range for the fifth consecutive year.

• Integration of Murat Ticaret progressing well, enhancing Off-Highway capabilities, diversification, and global reach.

• Expanded manufacturing footprint by 15% with new facilities in India, Mexico, and Indonesia; further expansions in Turkey and Mexico underway.

• Interim dividend increased by 7.1% to 1.5p per share, marking the fifth consecutive annual increase.

Financial highlights

• Underlying operating profit rose 27.3% year-over-year to $47.6m; statutory operating profit up 41.9% to $36.6m.

• Underlying EBITDA increased by 31% to $61.3m; net debt at 1.3x EBITDA, maintaining financial flexibility.

• Return on capital employed at 19.6%, up from 14.3% in H1 FY2023.

• Underlying profit before tax improved by 11.6% to $37.5m; statutory profit before tax up 20.5% to $26.5m.

• Underlying basic EPS: 15.2c (up 2.0%); statutory basic EPS: 10.4c (up 18.2%).

Outlook and guidance

• Full-year performance expected to be in line with expectations; strong momentum anticipated in H2 despite tougher comparatives.

• Five-year plan on track, requiring 6% annual growth to reach $1.2 billion revenue target by FY2027.

• Continued investment in capacity, automation, and capabilities to support long-term growth; CapEx at 5% of revenue.