Volex – an upbeat set of Interims makes broker increase its Target Price to 470p a share, now 419p

Mark Watson-Mitchell - 12.11.2025

Further to my feature on Volex (LON:VLX) published on Monday, 10th November, the Basingstoke-based group has reported a very encouraging Interim Results statement.

The £770m-capitalised business, is engaged in integrated manufacturing of performance-critical applications and power and data connectivity.

Today’s Results

The group has announced a strong first half for FY2026, with revenue increasing by 12.7% to $583.9 million, driven by 13.0% organic growth, notably an 80% surge in Data Centres sales.

Underlying operating profit rose by 20.2% to $57.2m, while underlying operating margin was maintained at 9.8%, at the upper end of the target range.

Earnings per share increased by 29.6% to 19.7c, and the interim dividend was raised by 6.7% to 1.6p per share.

Full-year expectations remain unchanged, with trading in the second-half proving solid and revenue expected to be broadly consistent with the first-half.

Management Comment

CEO Nat Rothschild stated that:

"The first half of the year has seen another period of strong and disciplined execution, reflecting the effectiveness of our strategy and the resilience of our business model.

Despite a backdrop of tariff-related uncertainty, we delivered sustained profitable growth and have enhanced our position as an essential partner to global blue-chip customers, providing mission-critical interconnects that are vital to the uptime and safety of technologically advanced equipment.

Our focus on five core markets, each supported by structural growth drivers, underpins our strength and resilience through diversification.

This broad exposure to opportunities in high-growth sectors, such as Electric Vehicles, Complex Industrial Technology and Off-Highway, plugs us into secular tailwinds and enables us to deliver consistent through-cycle performance.

We continue to invest for the long term with purpose and discipline, expanding capacity, enhancing vertical integration and maintaining strong cost control to improve competitiveness and support compounding growth through cycles.

With a talented team, a robust balance sheet and a clear strategy, we are well positioned to meet our full-year expectations and to deliver sustained, long term shareholder value creation."

Brokers View

The analyst team at Jefferies this morning has stated that:

“Volex's update is the most upbeat we have seen in the sector as of late, with growth/margin ahead of expectations, and strong momentum being maintained.

Investments over recent years have paid off, and Volex is clearly in a comfortable position to meet its FY27F objectives, in our view.

We raise our forecasts and our PT and reiterate Buy.”

The brokers have now jacked up their TP to 470p a share from 430p previously.

For the year to end-March 2026 they see sales of $1,148.8m ($1,086.5m), pre-tax profits of $96.4m, earnings of 38.7c and a 4.6c dividend per share.

Going forward the brokers estimate $1,233.4m sales, $104.6m profits, earnings of 42.0c and a dividend per share of 4.8c.

My View

The group’s shares have risen 46p to 419p in reaction to today’s positive news.

There is clearly more Upside for the shares as progress continues.

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