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Investing.com - Volex plc (AIM:VLX) on Thursday reported robust performance for the six months ended September 30, with expected revenue exceeding $575 million and organic growth of at least 11% YoY, driven by strong demand in data centers and electric vehicles.
The company maintained its operating profit margin within the upper half of its 9-10% target range, demonstrating resilience amid regional cost pressures while continuing to invest in capacity expansion. The strong margin performance validates Volex’s ability to navigate challenging market conditions while supporting customer needs.
"Structural demand in key markets, a diversified customer base, and continued investment in capability expansion underpin the Group’s confidence in delivering strong returns for all stakeholders, despite a challenging macro-economic environment," said Nat Rothschild, Executive Chairman of Volex.
Growth was particularly strong in the Electric Vehicles segment, while the Complex Industrial Technology division saw significant expansion with data center demand showing a very strong increase compared to the first half of last year. The Off-Highway segment also delivered strong growth, benefiting from a one-off customer project.
However, Medical demand remained subdued as customers assessed healthcare spending implications and adjusted inventory levels, while Consumer Electricals revenue declined organically against a strong prior-year comparison.
Looking ahead, Volex expects second-half revenues to be broadly similar to the first half, reflecting stable trading across most end-markets.
The company noted that some new program launches in Complex Industrial Technology and Electric Vehicles segments have been temporarily deferred due to manufacturing relocations in response to tariff changes, with these projects now expected to be delivered in FY2027 and beyond.
With a strong balance sheet and significant undrawn facilities, Volex remains well-positioned to pursue value-accretive acquisitions while maintaining its full-year guidance. The company will release its interim results on November 12, 2025.
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