Volex (VLX) Q2 2027 TU earnings summary

Revenue and end-market performance

• H1 revenue expected to be at least $710m, including ~$11m from KST; organic constant-currency growth expected to be at least 21% YoY.

• H1 revenue expected ~7% above H2 FY2026 on an organic constant-currency basis; headline growth is normalising as prior-year Data Centre programme ramp-ups annualise.

• Complex Industrial Technology grew significantly YoY; US site consolidation is on track to complete by FY-end, with customer buffer stocks bringing forward ~$10m of H2 revenue.

• Data Centre revenue was well above the prior-year period but below H2 FY2026; supply conditions have normalised, while demand remains strong and next-generation products are expected to ramp in FY2028.

• Off-Highway, EV & Electrification, and Medical grew YoY; Consumer Electricals returned to organic growth, led by new-project ramp-ups.

Operating margin

• H1 underlying operating margin is expected to progress towards the 12% medium-term target, supported by improved revenue mix, KST’s higher-margin contribution and operational efficiencies.

• Operating expenses remain closely managed, with capacity and capability investment focused on the medium-term strategic plan.

Balance sheet and capital allocation

• Balance sheet remains strong; covenant leverage at 30 September 2026 expected to be no more than 1.2x, with significant undrawn facilities.

• £16.9m of shares repurchased and cancelled under the £20m buyback; programme expected to complete in Q3 FY2027.

• Positioned to pursue value-accretive acquisitions that meet investment criteria.