Volex (VLX) H2 2026 earnings summary

Executive summary

• Achieved record revenue of $1.243 billion, up 14.4% year-over-year, surpassing the $1.2 billion target and delivering the five-year plan a year early, driven by strong Data Centre and Off-Highway demand.

• Underlying operating margin reached 10.2%, exceeding the previous 9%-10% target range for the first time, supported by operational efficiencies and improved product mix.

• Continued investment in centers of excellence and site rationalization to enhance capabilities, customer choice, and operational efficiency.

• Set new medium-term targets: $2 billion revenue and 12% operating margin, with a strategic focus on scaling with category leaders and moving up the complexity curve.

• Strong organic growth in Off-Highway (20%) and Complex Industrial Technology (56.3%), with data center demand as a major driver.

Financial highlights

• Revenue grew 14.4% year-over-year to $1.243 billion; organic growth was 14.2%.

• Underlying operating profit increased nearly 20% to $127.3 million; margin improved to 10.2%.

• Underlying basic EPS rose to $0.435.

• Return on capital employed improved to 21%.

• Underlying EBITDA was $164 million, up 22%; underlying free cash flow was $42 million, with cash conversion at 63.9%.

Outlook and guidance

• Trading in FY 2027 has started strong and is in line with expectations.

• Medium-term plan targets $2 billion revenue and 12% operating margin, with $500 million organic growth and $300 million from acquisitions.

• FY2027 guidance includes capital expenditure at ~4% of revenue and underlying effective tax rate of 24-25%.

• On track to migrate from AIM to the Main Market of the London Stock Exchange.

• Data center demand expected to remain robust; diversification across five end markets to drive sustainable growth.