Volex Reports $723.6 Million in First-Half Revenue as Operating Profit Rises 40.9%
Key Facts
Volex reported first-half results for its 2027 financial year on November 12, covering the period ended September 30, 2026, with revenue of $723.6 million, up 23.9% from $583.9 million a year earlier. Adjusted operating profit rose 40.9% to $80.6 million from $57.2 million. The adjusted operating margin widened to 11.1% from 9.8% in the corresponding period. The company said organic revenue grew 23.6% at constant exchange rates. Statutory basic earnings per share rose to 38.6 cents from 15.3 cents, while adjusted basic earnings per share was 27.7 cents, compared with 19.7 cents.
The jump in statutory earnings coincided with a non-cash gain from remeasuring Volex’s previous stake in KST. Statutory profit before tax was $75.4 million, compared with $37.9 million a year earlier. The company said the figure included a one-off non-cash gain of $26.8 million. Excluding this gain, statutory profit before tax was $48.6 million. Meanwhile, adjusted basic earnings per share rose to 27.7 cents from 19.7 cents, providing a measure of operating performance that excludes that accounting effect.
Revenue growth extended across the group’s five end markets, according to the company, with the electric vehicles and power market recording organic growth of 46.8%. Data centre revenue grew organically by 47.0% year on year. Organic growth was 19.5% even excluding data centres, which the company said reflected broad-based momentum across the group. The KST acquisition also contributed $11.3 million in revenue since Volex acquired full ownership in July 2026. This was partly offset by a $7.4 million decline due to foreign exchange.
Volex raised its ownership of KST to 100% after buying the remaining 64.3% stake in July 2026. The deal expanded its medical business to include patient-to-device cables. The company said integration and trading were progressing in line with the acquisition plan. As part of its corporate expansion, Volex transferred to the London Stock Exchange’s Main Market on July 24, 2026, and joined the FTSE 250 on September 21, 2026. These steps came during a period in which KST contributed to first-half revenue alongside organic sales growth across the five markets.
Underlying free cash flow improved to $22.3 million from $4.8 million in the corresponding half, and cash conversion rose to 56.5% from 33.4%. On financing, net debt was $241.3 million at September 30, compared with $184.1 million a year earlier. Excluding operating lease liabilities, net debt was $203.7 million, compared with $151.2 million. The company said covenant leverage reached 1.1 times, versus 0.8 times in financial year 2026. It attributed this to the KST acquisition and the return of $22.7 million to shareholders through share buybacks.
The underlying effective tax rate was 24.2% in the first half, compared with 22.7% in the corresponding period and 23.6% for financial year 2026. The company attributed the increase mainly to the removal of inflation accounting in Turkey. It declared an interim dividend of 1.7 pence per share, up 6.3% on the previous year. These indicators reflect several aspects of the results, from profit and cash flow growth to higher debt and the tax rate. The company said all five end markets contributed to organic growth of 23.6%.
Volex said the second half had started well and that the board had left its full-year financial outlook unchanged. The company expects second-half revenue to be close to first-half revenue, excluding about $10 million of revenue brought forward into the first half. It also maintained its medium-term target for an underlying operating margin of 12%. The company scheduled an online investor presentation for November 13, 2026, at 2:30 p.m. GMT. The presentation comes the day after the results announcement, while the financial-year outlook remains unchanged.