Volex PLC on Monday upgraded its full-year earnings outlook and said it anticipates revenue for the year to cross the $1 billion mark, driven by a ‘strong’ fourth-quarter.
Shares in Volex were up 8.4% at 215.50 pence in London on Monday morning. The stock has fallen 22% over the past year.
The Hampshire, England-based specialist integrated manufacturer of critical power and data transmission products said it now expects revenue of at least $1.06 billion for the year that ended March 30, up 16% from $912.8 million the year before.
Volex also on Monday said it anticipates underlying operating margins at the top end of its 9% to 10% target, and operating profit of at least $100 million, at the upper end of $95.8 million to $97.6 million company-compiled market consensus range.
The firm reported $89.7 million in underlying operating profit for financial 2024.
Volex achieved ‘strong momentum’ within its Electric Vehicles and Consumer Electricals arms during the year, which the firm said positioned it ‘well’ for financial 2026.
Meanwhile, its Complex Industrial Technology division delivered low double-digit organic growth, supported by an uptick in data centre product demand and infrastructure investments from an unnamed ‘major customer’ in the fourth quarter.
Medical sector revenue declined on-year as a result of one-time customer catch-up orders, and growth in its Off-Highway businesses normalised during twelve-month period as softer macroeconomic conditions in some end-markets were offset by customer wins in North America and Europe.
‘For the first time in Volex’s history, revenue and profits have exceeded $1 billion and $100 million respectively. This is a direct result of our continued investment in advanced manufacturing capabilities, coupled with our strategic focus on key growth sectors, whilst simultaneously maintaining strong returns on capital employed,’ said Executive Chair Nat Rothschild.
‘Although wider market uncertainty has increased in recent days, particularly around tariffs, Volex’s current market valuation fails to adequately reflect our embedded presence in global technology supply chains, alongside the unique geographic and end-market diversification that has become such a feature of the Volex that our team has built in recent years.
‘I am very confident that these elements mean we are well placed to navigate prevailing market conditions and continue to deliver on the significant growth opportunities that lie ahead.’
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