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Volex plc issued a trading update on 21 January 2026 for the nine months ended 31 December 2025. The company reported group revenue of $902.7 million, representing year-on-year organic constant currency growth of 14.8%. Volex also stated underlying operating margins were around the upper end of its 9-10% target range year-to-date, and net debt covenant leverage was approximately 1.0x as of December 2025.
| Date | 21 Jan 2026 |
| Time | 07:00:07 |
| Category | Trading updates |
| ID | 6755P |
21 January 2026
Volex plc
("Volex", the "Company", or the "Group")
Trading update
Further outperformance in Q3 supports increased expectations for the full year
Volex plc (AIM: VLX), the specialist integrated manufacturer of critical power and data transmission products, is pleased to report a trading update for the nine months ended 31 December 2025.
The Group delivered a strong performance through the third quarter, building on the momentum reported at the half year. For the nine months to December 2025, Group revenue was $902.7 million, representing year-on-year organic constant currency growth of 14.8%.
The Group benefitted from particularly strong growth in Complex Industrial Technology, supported by continued, elevated demand from Data Centre customers. This reflects continued global investment in AI and digital infrastructure, supported by growth from other industrial customers remaining robust.
Across the Group's other end markets, revenues for the quarter were broadly consistent with the trends noted during the first half of the year. Electric Vehicles and Off Highway both generated organic revenue growth in the nine-month period, although Electric Vehicles organic growth moderated in Q3 due to a stronger comparative period. Although sequential performance in Medical and Consumer Electricals was stable, revenues were lower than the comparative nine-month period due to the ongoing impact of trading headwinds noted at the half year, namely destocking at a major medical customer and weaker demand for consumer appliances for the Group's European customers.
Underlying operating margins remained strong, around the upper end of the Group's 9-10% target range year-to-date, supported by pricing discipline, operational efficiencies and effective cost control.
Financial position supports continued investment for growth
The Group's balance sheet remains robust. Net debt reduced further through to December 2025, with covenant leverage1 now around 1.0x, reflecting continued cash generation and disciplined working capital management. This provides flexibility to continue investing in growth, including capacity expansion, automation, further vertical integration in support of customer demand and disciplined M&A.
Improved outlook for FY2026
The strong momentum, and good visibility through to the financial year-end provides the Board with confidence in delivering full year revenue ahead of current market consensus2. Underlying operating margins are projected to be sustained, also driving an increase in the Board's expectations for underlying operating profit3 for the full year.
While mindful of ongoing macroeconomic uncertainty and the evolving demand environment in certain end markets, the Group's exposure to diversified, structurally attractive sectors, combined with a global manufacturing footprint and strong customer relationships, supports the Board's confidence in delivering sustainable, profitable growth and long-term shareholder value.
Nat Rothschild, Chief Executive Officer of Volex, said:
"Our year-to-date performance reflects strong execution across the Group and the benefits of our exposure to structurally attractive markets. Demand from Data Centre customers has been particularly strong, driven by sustained investment in AI and digital infrastructure.
We continue to invest with discipline, maintain strong margins and a robust balance sheet. With good momentum into the final quarter, we now expect to exceed current market expectations, thereby giving increased confidence in achieving our five-year plan targets. Looking further out, we remain well positioned to deliver sustainable, long-term value for shareholders."
-ENDS-
1 Covenant leverage represents the ratio of net debt, excluding operating lease liabilities, to EBITDA excluding the impact of right of use amortisation arising on operating lease arrangements and pro-rated for acquisitions and disposals. This measure is aligned with the covenant calculations used for external debt facilities.
2 As at 19 January 2026, the average of company compiled analysts' forecasts for the year ending 31 March 2026 for revenue is $1,152.3 million with a range of $1,145.1 million to $1,167.4 million, the average for underlying operating profit is $112.7 million, with a range of $111.7 million to $114.9 million.
3 Underlying operating profit is before adjusting items which are one-off in nature and significant (such as restructuring costs, impairment charges or acquisition-related costs), the amortisation and impairment of acquired intangible assets and share-based payment charges. This trading update is based upon unaudited management accounts information. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.
For further information please contact:
Nat Rothschild, Chief Executive Officer [email protected]
Jon Boaden, Chief Financial Officer
Peel Hunt LLP - Nominated Adviser & Joint Broker +44 (0) 20 7418 8900
Ed Allsopp
Dom Convey
Tom Graham
Jefferies - Joint Broker +44 (0) 20 7029 8000
Philip Noblet
Sam Barnett
Harry Le May
Sodali & Co. - Media Enquiries +44 (0) 20 7250 1446
James White
Nicholas Johnson
Volex plc (AIM:VLX) is a driving force in integrated manufacturing for mission-critical applications and a global leader in power and data connectivity solutions. Our diverse operations support international blue-chip customers in five key end-markets: Electric Vehicles, Consumer Electricals, Medical, Complex Industrial Technology and Off-Highway. Headquartered in the UK, we orchestrate operations across 25 advanced manufacturing facilities, uniting 13,000 dynamic individuals from 25 different nations. Our extraordinary products find their way to market through our localised sales teams and authorised distributor partners, supporting Original Equipment Manufacturers and Electronic Manufacturing Services companies across the globe. In a world that grows more digitally complex by the day, customers trust us to deliver power and connectivity that drives everything from household essentials to life-saving medical equipment. Learn more at www.volex.com.
This announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as, by their nature, such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.