UK's Volex H1 revenue rises 24% on EV, data centre strength

Overview

• UK critical power component maker's H1 revenue rose 23.9% on strong organic growth

• Underlying operating profit for H1 rose 40.9%, with margin expanding to 11.1%

• Company completed KST acquisition and £20 mln share buyback in the half

Outlook

• Volex expects second-half revenue to be broadly in line with first half, excluding c.$10 mln brought forward

• Company says full-year expectations, as upgraded in October, are unchanged

• Volex reiterates medium-term targets of $2 bln revenue, 12% underlying operating margin and 20% ROCE

Result Drivers

• EV & ELECTRIFICATION GROWTH - Organic growth of 46.8% driven by increased share of largest EV customer's requirements and new energy storage programmes

• DATA CENTRE & COMPLEX INDUSTRIAL DEMAND - Data Centre revenue grew 47% organically, aided by strong demand from hyperscale customers and buffer stock build-up for US site consolidation

• KST ACQUISITION - Acquisition of remaining 64.3% of KST contributed $11.3 mln revenue and expanded Medical segment into patient-to-device cables

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Volex PLC is GBp720.00, about 27% above its November 11 closing price of GBp567.00

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Nov 10 - UK's Oxford Instruments H1 revenue rises on strong demand for compound semiconductors

• Nov 10 - German photonics group Jenoptik's 9-month sales, profit rise on strong demand, cost cuts

• Nov 10 - Netherlands' TKH Group Q3 turnover rises on growth in automation and electrification segments, reiterates 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)