Volex smashes $1bn sales and $100m profits levels with record trading year
Volex, the Warrington-based cables group, said it will publish record-breaking annual results for the year to March 30, 2025.
In a trading update this morning (April 7), it said for the first time in the group’s history, revenue and profits have exceeded $1bn and $100m, respectively.
It said this is due to a strong fourth quarter, leading to revenue expectations of at least $1.060bn, representing a year-on-year increase of at least 16%, and organic constant currency growth of at least eight per cent.
Underlying operating margins are anticipated to be at the upper end of the target corridor of nine to ten per cent, with operating profit of at least $100m, well ahead of the top end of market estimates.
Volex said this “robust financial performance” highlights its ongoing success in securing new projects through delivering cost-competitive and technically advanced manufacturing services.
Improved underlying operating profit margins in the second half were driven by a favourable product mix, including increased demand for data centre products, as well as a focus on incremental operational improvements.
Electric Vehicles (EV) and Consumer Electricals continued their strong momentum, securing several new key customer relationships, positioning the group well for the 2026 fiscal year.
Complex Industrial Technology experienced notable strength, delivering low double-digit organic growth, supported by increased data centre product demand, particularly driven by accelerated infrastructure investments from a major customer in the last quarter of the year.
Medical sector revenues declined against the prior year period that benefited from one-time customer catch-up orders.
Integration activity continues in the group’s Off-Highway business, delivering planned productivity improvements and efficiencies.
Growth in this segment normalised during the year, with softer macroeconomic conditions in some end markets offset by several strategic customer wins in North America and Europe, resulting in flat year-on-year organic revenue.
Volex said the majority of its products represent essential components within complex supply chains. In many instances, Volex is either the sole provider or one of very few qualified manufacturers capable of meeting demanding technical and operational requirements, fostering strong customer reliance.
In January this year Volex said it would pay €10m of cash to the former owners of Murat Ticaret after the Turkish business it acquired in June 2023 exceeded profit targets.
Volex executive chairman, Nat Rothschild, said today: “For the first time in Volex’s history, revenue and profits have exceeded $1bn and $100m, 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.
“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.”
He added: “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.”
