Volex reports rise in full-year revenue
By Josh White
Date: Thursday 26 Jun 2025
(Sharecast News) - Volex reported a 19% increase in full-year revenue on Thursday, to $1.09bn, supported by strong growth in its electric vehicles and consumer electricals divisions, as it maintained margins at the top end of its target range and expressed confidence in further progress.
Underlying operating profit rose 18.4% to $106.2m, with the operating margin steady at 9.8%, reflecting robust pricing power and operational efficiency.
Organic revenue growth was 11.1%, complemented by the full-year contribution from the Murat Ticaret acquisition.
Free cash flow came in at $42.2m, lower than the prior year's $56.8m, which had benefited from a working capital inflow following supply chain normalisation.
The board proposed a final dividend of 3p per share, bringing the total for the year to 4.5p, up 7.1%.
Net debt covenant leverage remained at 1.0x, providing significant financial flexibility.
The electric vehicles division was the standout performer, with organic revenue growth of 40.2% to $172.9m, driven by programme wins with both new and existing customers.
Consumer electricals grew 9.6% to $257m, while complex industrial technology rose 14.5%, supported by strong demand from data centres, HVAC, and automation.
Medical revenue declined 4.9% against a strong prior year, though the company said long-term prospects remain positive.
Off-highway revenue rose 3.6%, with growth in European transport offsetting softness in agriculture and construction.
Regionally, North America led with growth of 35.2%, driven by demand in EV and data centres.
Europe grew 16.1%, reflecting the impact of the Murat Ticaret acquisition, while Asia declined 7.9% due to customer mix in the data centre sector.
"2025 was an outstanding year for Volex, marked by strong growth, sustained margin performance and successful strategic execution," said executive chairman Nat Rothschild.
"We have delivered this growth while maintaining operating margins at the upper end of our target range, in the face of inflationary pressure, demonstrating pricing power due to the criticality of our output for customers."
Rothschild added that tariffs and global trade dynamics remained "front of mind" for customers.
"We view these challenges as opportunities and, as a result of our extensive international footprint, deep customer relationships and track record in complex programme relocations, we have a clear strategic advantage."
Rothschild said Volex remained on track to deliver its five-year growth plan, supported by a strong pipeline of organic initiatives and further acquisition opportunities.
Trading in the current financial year reportedly started strongly, maintaining the momentum from the 2025 financial year.
At 1448 BST, shares in Volex were up 17.15% at 369.62p.
Reporting by Josh White for Sharecast.com.
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