Volex expects record half-year revenue of at least $710 million

Key Facts

Volex forecast record first-half revenue of at least $710 million, according to its official half-year trading update, with annual earnings expected near the top of analysts' forecast range. The company said organic revenue growth at constant exchange rates was expected to reach at least 21% compared with the same period a year earlier. On a sequential basis, it forecast organic revenue growth of about 7% from the previous half, also at constant exchange rates. Management expects underlying operating profit for the current financial year near the upper end of analysts' forecast range of $145.9–153.3 million. Analysts' consensus forecast for that profit stood at $138.3 million at the time of the previous annual general meeting update.

Revenue for the period included about $10 million in purchases brought forward by customers from the second half to build buffer inventories, according to the company's update. The purchases were brought forward during the consolidation of Volex's U.S. manufacturing sites. After accounting for the revenue brought forward, the company expects second-half revenue to be "broadly similar" to first-half revenue. In the data centre business, revenue rose compared with the same period a year earlier, according to the same update. However, it remained below the level recorded in the second half of financial year 2026, despite the year-on-year growth.

As part of the group's expansion, Volex's acquisition of Kepler SignalTek involved the purchase of the remaining 64.3% stake in the company, according to the deal announcement. Volex set the maximum consideration for that stake at about $89.4 million, under the terms announced at the time of the acquisition. It said it would fund the deal through its existing credit facilities to acquire the remaining ownership of the target company. Kepler SignalTek specialises in patient-connected medical products, an area complementary to Volex's medical business, according to the acquisition announcement. Volex said at the time that the deal was expected to be "immediately earnings-enhancing" and improve the group's underlying operating margin.

Volex had reported organic revenue growth at constant exchange rates of 28.0% in the opening period of the year, according to its previous annual general meeting statement. As background to its performance, the previous annual results showed group revenue reaching $1,242.6 million. The company compared that figure with revenue of $1,086.5 million in the preceding year, according to its annual results statement. Revenue growth between the two years was 14.4%, according to the figures the company reported for that period. On the listing front, Volex shares moved from the Alternative Investment Market to the London Stock Exchange's Main Market on 24 July 2026.

The previous annual results also showed Volex's underlying operating profit rising to $127.3 million, according to the company's statement for that year. Comparable profit in the preceding year was $106.2 million, according to the annual figures reported by the group. Underlying operating profit therefore grew by 19.9% in the previous financial year, according to the results statement. Over the medium term, Volex's plan targets revenue of $2 billion, according to the company's investor relations page. The plan also includes achieving an operating margin of 12%, alongside the stated medium-term revenue target.

For the next phase of its data centre business, Volex is looking to produce the next generation of higher-speed products, according to the half-year trading update. The company identified financial year 2028 as the expected start of the production ramp-up for these products. This follows a period in which the business recorded year-on-year revenue growth, with revenue declining compared with the previous half. At group level, management expects revenue in the two halves of the year to be similar after accounting for purchases brought forward by customers because of the consolidation of U.S. manufacturing sites. Volex is scheduled to announce its half-year results on 12 November 2026, according to the financial calendar published on its investor relations page.