Volex plc

FY 2026 revenue was $1.243 billion, up 14.4% year on year, with 14.2% organic growth. Underlying operating profit was $127.3 million, up almost 20%, and underlying operating margin was 10.2% versus 9.8% last year. Underlying basic EPS was $0.435, up 20%, and return on capital employed was 21%. Underlying EBITDA was $164 million, capital expenditure was $35 million, underlying free cash flow was $42 million, and covenant leverage finished at 0.8x, down from 1.0x. By segment, EV and Electrification revenue was $181.8 million (+4.8% organic), Off-Highway was $279.3 million (+20% organic), Consumer Electricals was $242.4 million (-7.8% organic), Medical was $156.2 million (-10.5% organic), and Complex Industrial Technology was $382.9 million (+56.3% organic). Management said FY 2027 trading to date has been strong and in line with expectations, data center demand in the first quarter is sustained at similar levels, Medical demand should stabilize, and the company remains on track for its new medium-term plan of $2 billion revenue and a 12% operating margin.

Nat Rothschild said FY 2026 showed the company had delivered its five-year plan a full year early and exceeded the prior 9%-10% margin range. His strategic message was that Volex wins through customer lock-in, technical depth, vertical integration, and a global footprint that lets it move programs across regions without disruption. He was notably upbeat on the next phase, describing the path to $2 billion revenue and 12% operating margin as clear and credible, and he framed the move to the Main market as evidence the company has outgrown AIM.

Jon Boaden emphasized the financial strength of the year: revenue of $1.243 billion, underlying operating profit of $127.3 million, margin of 10.2%, EPS of $0.435, and ROCE of 21%. He said EBITDA was $164 million, capex was $35 million or 2.8% of revenue, free cash flow was $42 million, and cash conversion was 63.9%, with leverage ending at 0.8x and giving the company headroom for growth and acquisitions. He also noted inflation was managed mainly through efficiency and customer pass-through, working capital rose to support data center growth and relocation initiatives, and capital allocation remains focused on organic growth, selective M&A, dividends, and share buybacks when needed.

Analysts pressed on whether FY 2026 was overly dependent on one hyperscaler/data-center customer, and management replied that growth was broader than just data centers, pointing to strong Off-Highway performance and the fact that outside the two biggest customers, none exceed 4% of revenue. On sustainability of data-center demand, Nat Rothschild called it an extraordinary five-year-plus opportunity, while Jon Boaden added that Volex also supplies power products and is well positioned for the shift toward DC power. Questions on the Main-market move drew a response that Volex has outgrown AIM, expects broader institutional ownership and index buying, and believes most AIM recycling has already occurred.