Volution Group plc (LSE:FAN) has upgraded its earnings expectations for fiscal 2026, with the ventilation products manufacturer forecasting earnings per share around 4% ahead of current market consensus. The improved outlook is being driven by stronger operating margins, despite mixed trading conditions across its regional markets.
Record margins support higher profit expectations
The company expects earnings per share of approximately 38.0 pence for the financial year ending in July 2026, representing annual growth of around 15%. Operating performance has continued to improve, with EBITA margins forecast to reach a record 22.8%, reflecting continued operational efficiency and disciplined cost management.
Volution also expects organic revenue growth of around 3% for the full year. Europe remains the strongest-performing region, with organic growth projected at between 5.5% and 6.0%, accelerating to approximately 6.5% during the second half. The Nordic business, ClimaRad and ERI delivered particularly strong performances, while France traded below expectations and Germany recorded modest growth.
Regional performance remains mixed
The Australasia division is expected to deliver organic revenue growth of between 3% and 3.5%, broadly matching the pace achieved during the first half of the financial year. The business also benefited from the successful integration of AC Industries and Fantech, which made a positive contribution to margins.
In contrast, the UK market is expected to remain broadly flat for the full year, with revenue forecast to decline by around 3% in the second half. This would represent the division’s first year-on-year contraction since 2020.
Balance sheet supports future acquisitions
Volution ended the period with a net debt-to-EBITDA ratio of 1.6 times, leaving the company with financial flexibility to pursue acquisition opportunities over the coming year while continuing to invest in organic growth.
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