**Summary**
Volex plc, a specialist integrated manufacturer of critical power and data transmission products, released a trading update for the nine months ended December 31, 2025, highlighting strong performance and increased expectations for the full fiscal year 2026. Key points include
1. **Revenue Growth**Group revenue reached $902.7 million, with organic constant currency growth of 14.8% year-on-year, driven by strong demand in Complex Industrial Technology, particularly from Data Centre customers investing in AI and digital infrastructure.
2. **End Market Performance**
Strong growth in Electric Vehicles and Off-Highway, though EV growth moderated in Q3 due to tougher comparatives.
Medical and Consumer Electricals faced headwinds, including destocking by a major medical customer and weaker demand for consumer appliances in Europe.
3. **Margins and Financial Health**Underlying operating margins remained robust, near the upper end of the 9-10% target range, supported by pricing discipline and cost control. Net debt reduced, with covenant leverage at 1.0x, reflecting strong cash generation and disciplined working capital management.
4. **Outlook**The Board expects full-year revenue to exceed market consensus ($1,152.3 million) and anticipates higher underlying operating profit, driven by sustained margins and strong momentum.
5. **Strategic Positioning**Volex remains well-positioned in diversified, structurally attractive sectors, with a global manufacturing footprint and strong customer relationships, supporting long-term growth and shareholder value.
CEO Nat Rothschild emphasized strong execution, disciplined investment, and confidence in achieving the company’s five-year plan targets. The update underscores Volex’s resilience amid macroeconomic uncertainty and its focus on sustainable, profitable growth.