Volex shares surge sharply on 18.4% annual profit jump, positive outlook

Published 26/06/2025, 10:16
© Reuters.

Investing.com -- Volex shares surged over 21% Thursday after the company reported an 18.4% rise in underlying operating profit to $106.2 million for the fiscal year 2025 (FY2025), while statutory profit before tax climbed 24.6% to $64.3 million.

Volex’s revenue for the 19% year-on-year to $1.09 billion, supported by 11.1% organic growth.

Electric Vehicles and Consumer Electricals were standout segments, with EV revenue jumping 40.2% organically to $172.9 million and Consumer Electricals rising 9.6% to $257 million.

Operating margin held steady at 9.8%, the upper end of the company’s 9–10% target range.

Underlying basic EPS increased 7.7% to 36.3 cents.

The final dividend was raised by 7.1% to 3.0 pence per share, bringing the full-year payout to 4.5 pence.

North America led regional growth with a 35.2% increase, while Europe was up 16.1%, helped by the full-year contribution from the Murat Ticaret acquisition. Asia declined 7.9% due to customer mix in the data centre segment.

Volex said trading in FY2026 has started strongly and the company remains confident in delivering on its five-year plan targets, supported by structural growth drivers, operational efficiency, and a diversified global footprint.

The power products distributor also said it currently expects only “limited direct impact from the evolving tariff situation.”

Executive Chairman Nat Rothschild described FY2025 as “an outstanding year for Volex, marked by strong growth, sustained margin performance and successful strategic execution.”

“As we enter FY2026, the business is in excellent shape and we are confident in our ability to maintain momentum, build on our success and continue delivering strong returns for all stakeholders,” he added.

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