Volex lifts expectations after strong third quarter
By Josh White
Date: Wednesday 21 Jan 2026
(Sharecast News) - Volex said in an update on Wednesday that it delivered further outperformance in the third quarter, prompting the board to raise its expectations for the full year, as strong demand from data centre customers continued to drive growth.
The AIM-traded group said revenue for the nine months ended 31 December rose to $902.7m, representing organic constant currency growth of 14.8% year on year, building on the momentum reported at the half-year stage.
Performance in the third quarter was led by the complex industrial technology division, where growth was supported by "continued, elevated demand from data centre customers", reflecting sustained global investment in AI and digital infrastructure, alongside robust demand from other industrial customers.
Across Volex's other end markets, trading in the third quarter was broadly consistent with trends seen in the first half.
Electric vehicles and off highway both delivered organic revenue growth over the nine-month period, although growth in electric vehicles moderated in the third quarter due to a stronger comparative period.
In medical and consumer electricals, sequential performance was described as stable, but revenues were lower year on year as the group continued to see the impact of destocking at a major medical customer and weaker demand for consumer appliances from European customers.
Underlying operating margins remained strong, running around the upper end of the group's 9% to 10% target range on a year-to-date basis, supported by pricing discipline, operational efficiencies and effective cost control.
Volex said its balance sheet remained robust, with net debt reduced further by December and covenant leverage at around 1x, reflecting continued cash generation and disciplined working capital management.
The group said its financial position provided flexibility to continue investing in growth, including capacity expansion, automation, further vertical integration and disciplined mergers and acquisitions.
Given the strong momentum and good visibility into the final quarter, Volex said the board now expected full-year revenue to come in ahead of current market consensus, with underlying operating margins projected to be sustained and underlying operating profit for the year also expected to exceed previous expectations.
"Our year-to-date performance reflects strong execution across the group and the benefits of our exposure to structurally attractive markets," said chief executive Nat Rothschild.
"Demand from data centre customers has been particularly strong, driven by sustained investment in AI and digital infrastructure.
"We continue to invest with discipline, maintain strong margins and a robust balance sheet.
"With good momentum into the final quarter, we now expect to exceed current market expectations, thereby giving increased confidence in achieving our five-year plan targets.
"Looking further out, we remain well positioned to deliver sustainable, long-term value for shareholders."
At 1218 GMT, shares in Volex were up 8.2% at 442p.
Reporting by Josh White for Sharecast.com.
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