Volex plc (LSE:VLX) expects to report record revenue of at least $710 million for the six months ended 30 September 2026, following growth across all five of its end-markets.
The manufacturer of power and data transmission products said first-half revenue is expected to increase by at least 21% year on year on an organic constant currency basis.
Growth was supported by demand across Complex Industrial Technology, Electric Vehicles (EV) & Electrification and Consumer Electricals, alongside contributions from the acquisition of Kepler SignalTek (KST).
The group also reported continued improvement in its underlying operating margin and now expects underlying operating profit for the financial year ending 2027 to be towards the upper end of market expectations.
Volex anticipates second-half revenue broadly in line with the first six months.
First-Half Revenue Expected to Reach at Least $710 Million
Volex reported that trading during the first half of FY2027 resulted in expected revenue of at least $710 million, representing a record six-month performance for the group.
On an organic constant currency basis, revenue growth is expected to be at least 21% compared with the corresponding period of the previous financial year.
The company recorded growth across all five end-markets, with particular contributions from Complex Industrial Technology, EV & Electrification and Consumer Electricals.
Trading also benefited from additional customer orders placed ahead of the planned consolidation of the group’s US manufacturing facilities.
These orders contributed to first-half activity, although the company did not quantify their individual impact on revenue.
The acquisition of Kepler SignalTek also contributed to the group’s reported performance.
Growth Across Industrial, Electrical and EV Markets
Volex supplies power and data transmission products to original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) companies.
Its operations are organised across five end-markets: Complex Industrial Technology, Consumer Electricals, EV & Electrification, Medical and Off-Highway.
The company reported revenue growth across each of these markets during the six-month period.
Complex Industrial Technology includes applications in areas such as aerospace, defence and other industrial equipment, while EV & Electrification covers products used in electric vehicle and related electrical infrastructure applications.
Consumer Electricals includes components used in domestic and other electrical equipment.
The group’s customer base spans multiple industries and geographical markets, with manufacturing operations supporting international supply requirements.
Operating Margin Moves Towards 12% Target
Volex reported further improvement in its underlying operating margin during the first half.
The company attributed the increase to changes in its revenue mix, contributions from higher-margin activities acquired through Kepler SignalTek and continuing operational efficiency measures.
Volex has established a medium-term underlying operating margin target of 12%.
Management said the first-half performance represented further progress towards that objective.
The company did not provide a specific first-half underlying operating margin figure in the supplied update.
Its operational initiatives include the consolidation of US manufacturing facilities and continued efforts to improve production efficiency across its international operations.
FY2027 Underlying Operating Profit Outlook Raised
Following the first-half trading performance, Volex revised its expectations for full-year profitability.
The group now anticipates underlying operating profit for FY2027 towards the upper end of current market expectations.
The company expects revenue in the second half of the financial year to be broadly consistent with the first-half level.
This outlook follows the expected first-half revenue performance of at least $710 million and the improvement in underlying operating margins.
Volex did not specify the numerical range of market profit expectations in the supplied announcement.
The revised guidance remains a management forecast and will depend on trading conditions and operational performance during the remainder of the financial year.
Financial Position Supports Acquisition Strategy
Volex reported that leverage remains low, with its available borrowing facilities largely undrawn.
The company continues to pursue a strategy combining organic growth, operational improvements and acquisitions.
Its acquisition of Kepler SignalTek has contributed to the group’s revenue mix and underlying operating margin performance.
Volex said its financial position provides capacity to consider further acquisitions that meet its investment criteria.
The company operates internationally, supplying power and data products for applications including industrial equipment, medical devices, electric vehicles and consumer electrical systems.
Second-Half Revenue Expected to Match First-Half Levels
Volex enters the second half of FY2027 expecting revenue broadly in line with the record first-half performance.
The company has maintained its medium-term underlying operating margin target of 12% while raising its full-year profit outlook towards the upper end of market expectations.
Its operational priorities include progressing the consolidation of US manufacturing sites, maintaining efficiency improvements and evaluating potential acquisitions.
The group expects to report first-half revenue of at least $710 million, with organic constant currency growth of at least 21%, subject to the finalisation of its interim financial results.
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