Volex – brokers looking to ‘revisit’ estimates after this Wednesday’s Interims, shares 365p

Mark Watson-Mitchell - 10.11.2025

It will be interesting to note whether broker’s analysts change or even upgrade their estimates for Volex (LON:VLX) upon publication of the group’s Interim Results this coming Wednesday, 12^th November.

Just over three weeks ago the £686m-capitalised company, which is a specialist integrated manufacturer of critical power and data transmission products, declared in a Trading Update that it had enjoyed a strong first-half result to end-September and that it is expecting its second-half revenues will be broadly similar.

The Business

Employing some 13,000 people, this Basingstoke-based group is engaged in integrated manufacturing of performance-critical applications and power and data connectivity.

Its portfolio of products, capabilities and solutions include power cords, plugs, connectors, receptacles; integrated manufacturing services; electric vehicle charging solutions; consumer cable harnesses and power products; high-speed copper interconnect cable/data transfer cable; and data centre power cables/power cords.

The company manufactures a range of electric vehicle charging components as well as consumer cable harnesses and power products for the global white goods market

 offering performance through its integrated manufacturing services that cover the entire process.

It delivers high-speed data cables, which undergo end-to-end testing to ensure they surpass its customers' quality and performance requirements.

Volex markets its products to Original Equipment Manufacturers and electronic manufacturing services companies through its sales force and distributors across the world.

The business has operations in Asia-Pacific, North America, and Europe.

It operates under five main segments – Complex Industrial Technology, Off-Highway, Consumer Electricals, Medical, and Electric Vehicles.

Recent Trading Update

The half-year trading statement guided that revenues are expected to exceed $575m ($518.2m), with organic revenue growth at least 11% for the six months to end-September driven by the Group's product offering and long-standing relationships with blue-chip customers across its five end-markets.

Operating profit margin for the first-half is expected to remain within the upper half of the Board's through-cycle target range of 9-10%.

Complex Industrial Technology grew significantly with data centre demand showing a very strong increase relative to the first-half of financial 2025.

The company said Off-Highway delivered strong growth and its Electric Vehicles grew strongly year-on-year, however Medical demand was subdued.

Consumer Electricals revenue was similar to the second-half of financial 2025, but down on an organic basis.

For the second-half of its trading year, the group expects revenues to be broadly similar to the first-half, reflecting stable trading across most end-markets.

Management Comment

CEO Nat Rothschild stated that:

"Structural demand in key markets, a diversified customer base, and continued investment in capability expansion underpin the group's confidence in delivering strong returns for all stakeholders, despite a challenging macro-economic environment.

The board's expectations for the full-year remain unchanged."

The Equity

There are some 184.53m shares in issue, with Nat Rothschild being the biggest holder with 25.61% of the equity.

Other holders include Rathbones Investment Management (6.61%), Investec Wealth & Investment (5.55%), Octopus Investments (5.04%), Interactive Investor Services (3.43%), Fidelity Management & Research (3.23%), Herald Investment Management (3.04%), Aberdeen Investment Management (3.02%) and Kabouter Management (3.01%).

Analyst Views

There are some five brokers following the company, all of whom rate the group's shares as a BUY.

At Peel Hunt, the trio of analysts – Andrew Humphrey, Harry Philips and Lauren Baker Iguaz – have a Target Price of 380p but have stated that they will be ‘revisiting’ their TP upon this week’s statement.

They have noted that:

“Given very strong execution, good visibility on growth, and the modest low-teens multiple, we are confident in reiterating Buy despite somewhat reduced upside.”

Their estimates for the current year to end-March 2026 are for sales of $1,140m ($1,087m), with adjusted pre-tax profits of $91m ($88m), generating earnings of 36.4c (35.7c) and easily covering a dividend of 6.5c (5.6c) per share.

For the 2027 year, they look for $1,223m sales, profits of $99m, earnings of 39.6c and a 6.5c dividend.

To end-March 2028, the brokers foresee sales of $1,315m, with $108m profits, 43.1c in earnings and a maintained 6.5c per share dividend.

In My View

Following the somewhat drastic decline in share price in early April this year, when it fell back to just 190p due to US tariff fears, the recent recovery to maintain the 325p to 390p trading range has been noteworthy.

Now at 365p they are almost in the middle

The most reliable harnesses and assemblies for mission-critical applications

of that range, but some good corporate news this week could well see them breaking higher.