Volex shares slump despite forecast for FY at upper end of guidance
Shares in Volex slumped on Monday despite the power and data transmission product maker saying it expected full-year earnings to be at the upper end of expectations as benefits from the rush to build artificial intelligence centres start to normalise.
Electronic & Electrical Equipment
13,713.70
16:35 23/10/26
FTSE 250
24,237.39
16:35 23/10/26
FTSE 350
5,823.51
16:40 23/10/26
FTSE All-Share
5,760.23
16:40 23/10/26
Volex
536.00p
16:35 23/10/26
Group revenue for the first half is expected to be at least $710m, including a contribution of approximately $11m million from data cable transmission tester Kepler SignalTek, the acquisition of which completed in July.
Volex said first-half revenue is expected to be around 7% higher than the second half of FY2026 on an organic constant-currency basis, with year-on-year growth rates moderating as strong prior-year data centre comparatives annualise.
The group's Complex Industrial Technology division delivered strong growth, driven by aerospace and defence demand, while commercial and industrial applications also advanced. Volex said consolidation of its US manufacturing sites remains on track for completion by year-end.
Customers built buffer stock to support continuity of supply during the transition, bringing forward around $10m of revenue into the first half that would otherwise have fallen into the second half.
Data Centre revenue remained ahead of the prior-year period but below the second half of FY2026, reflecting the normalisation of supply conditions after Volex temporarily benefited from component availability constraints at rival suppliers.
The group said underlying demand remains strong and reiterated its confidence in the medium and long-term growth opportunity, supported by the expected ramp-up of next-generation higher-speed products from FY2028.
Off-Highway, Electric Vehicle & Electrification, Consumer Electricals and Medical all delivered growth, with EV & Electrification the standout performer as Volex gained a greater share of business from its largest EV customer and benefited from continuing electrification trends.
Consumer Electricals returned to organic growth on the back of new customer programmes, while Medical saw improving demand and continued progress integrating KST. The group also said first-half margins are expected to improve towards its 12% medium-term target, supported by a stronger sales mix, higher-margin KST revenues and ongoing operational efficiencies.
Reporting by Frank Prenesti for Sharecast.com