Volex – ahead of next Tuesday’s AGM, this group’s shares, now at 536p, offer an alluring upside over 600p on its positive prospects

Mark Watson-Mitchell - 20.08.2026

Lord Nathaniel Rothschild will, no doubt, exude confidence at next Tuesday’s AGM for his near £1bn-capitalised Volex (LON:VLX) group.

The business, which is a critical manufacturing partner to category leaders, delivering complex power and data connectivity systems, has recently noted that its record revenues and double-digit margins have delivered its ‘five-year plan’ one year early than anticipated.

Furthermore, Rothschild has declared various strategic investment positions that will take Volex into its next phase of growth.

Ahead of the AGM next Tuesday, 25^th August, the group will publish its AGM Trading Update – which I am convinced will be bullish in its content.

The group’s shares were trading at 365p last November when I featured the business, they subsequently peaked at 710p in late May this year, buoyed by the anticipation that a new wave of investors would get switched on to the group’s merits, as it progressed from AIM to the Main Market and potential eligibility for the FTSE250 Index.

A month later, they endured a sell-off, driving the shares down to 489p in early July.

There has been something of a recovery, such that they are now trading at around 536p, which could offer investors an early 61p advance to 600p before or after the AGM Statement.

The Business 

Volex, which was first listed on the market in 1993, is described as a driving force in integrated manufacturing for mission-critical applications and a global leader in power and data connectivity solutions. 

Its diverse operations support international blue-chip customers in five key end-markets: Electric Vehicles and Electrification, Consumer Electricals, Medical, Complex Industrial Technology and Off-Highway. 

Based in Basingstoke, it orchestrates operations across 23 advanced manufacturing facilities, uniting 12,500 dynamic individuals from 25 different countries across Asia- Pacific, North America, and Europe.  

The company’s product portfolio includes power cords, fibre optic cables, high-speed copper cables, electric vehicles and components.

It also offers multiple services including Electromechanical Assemblies and Systems, Custom Wiring and Cable Harnesses, Printed Circuit Board Assemblies (PCBA) and High-Level Assembly (HLA) Manufacturing and Integration.

Its products are marketed through localised sales teams and authorised distributor partners, supporting Original Equipment Manufacturers and Electronic Manufacturing Services companies across the globe.  

In a world that grows more digitally complex by the day, Volex customers trust it to deliver power and connectivity that drives everything from household essentials to life-saving medical equipment.  

2026 Final Results

On Thursday, 25^th June, the group reported record revenues of $1,242.6m for the year to end-March, showing an organic increase of 14.2% over the prior year, driven by strong Data Centre demand.

Underlying operating profit rose by 19.9% to $127.3m, with an improved operating margin of 10.2%, exceeding its target range.

Underlying basic earnings were up 19.8% at 43.5c per share.

The company achieved its five-year plan one year early and is strategically investing for future growth, with net debt decreasing by 12.9% to $152.3m.

Return on capital employed improved to 21.0% (19.7%), reflecting disciplined investment and the operating leverage of the business model.

The proposed final dividend is 3.2p per share, a 6.7% increase.

At that time the group stated that trading to date in FY2027 had been strong and in line with the Board's expectations.

Demand across key end-markets remained robust, supported by good forward visibility and continued strength in Data Centre, Off-Highway and EV & Electrification underpinning confidence in achieving year-on-year progress.

The group is well positioned to deliver the medium-term targets of revenues of $2bn and a 12% underlying operating margin.

Management Comment

Along with the Finals, CEO Nat Rothschild stated that:

"FY2026 was an outstanding year for Volex.

We delivered our five-year plan one year ahead of schedule, with revenue of over $1.2bn, underlying operating profit of over $127m and underlying operating margin of 10.2%, above the top end of our previous target range.

This performance reflects our diversified platform, the strength of our customer relationships, the breadth of our global manufacturing footprint and our ability to support category-leading customers in high-growth markets including Data Centres, Off-Highway and EV & Electrification.

Our technical expertise in complex, high-speed cable production and wire harness assemblies has made Volex an indispensable partner across a range of sectors and we are now deeply integrated into how our customers design and build their next-generation products.

Our manufacturing transfer capability has been a particular strength this year.

We have supported customer product relocations resulting from tariff changes and by broader supply chain redesign, with our 23-site footprint giving customers options they value highly.

We enter FY2027 with strong momentum, a more capable platform and a clear pathway towards our medium-term targets."

The Equity

There are some 182.83m shares in issue.

The larger holders include NR Holdings Ltd. (25.78%), Investec Wealth & Investment Ltd. (4.76%), Interactive Investor Services Ltd. (3.46%), Fidelity Management & Research Co. LLC (3.36%), Kabouter Management LLC (3.08%), Herald Investment Management Ltd. (3.05%), Octopus Investments Ltd. (2.93%), abrdn Investment Management Ltd. (2.30%), Ruffer LLP (2.12%) and Amati Global Investors Ltd. (1.68%).

Broker Views 

Seven brokers follow the company, six of whom rate the shares as a Buy, the other as a Hold. 

The average Target Price is for 667p, the Highest is 750p, the Lowest for 590p. 

Berenberg Bank has a 700p TP on its Buy, Jefferies also has a 700p Buy, Zeus Capital Markets has initiated with a 650p TP on its Buy note, Canaccord Genuity has a 600p Buy, and Deutsche has a Hold with its 590p TP.

The strongest call is made by analyst Andrew Humphrety, at Peel Hunt, rating the group’s shares as a Buy with a 750p Target Price.

Analysts Henry Carver and Caroline de La Soujeole, at Singer Capital Markets, in early- August increased their current year estimates for sales, profits and earnings, while their Target Price for the shares was set at 610p. 

They are looking for the end-March 2027 results to show sales of $1,346.6m ($1,242.6m), with adjusted pre-tax profits of $120.3m ($99.1m), earnings of 47.9c (38.2c) and paying out a dividend per share of 5.91p (4.80). 

For the 2028 year they see $1,449.5m sales, $133.5m profits, 53.4c earnings and a dividend of 6.43p per share. 

Leaping into end-March 2029 trading year, Singers goes for revenues of $1,541.0m, adjusted pre-tax profits of $144.5m, generating earnings of 57.8c, while paying out a dividend per share of 7.05p. 

My View

Based upon the group’s corporate outlook and the estimates of various brokers following its progress, it is more than possible that the recent sell-off is over and now the shares are heading back up again.

Now at 536p, they have an easy 600p objective at which to aim.

(Profile 10.11.25 @ 365p set a Target Price of 450p*)

(Profile 07.04.26 @ 490p set a Target Price of 610p*)

(Profile 20.08.26 @ 536p set a Target Price of 600p)

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