26th Jun 2025 13:22
(Alliance News) - Volex PLC shares jumped on Thursday as it reported increased earnings for the 2025 financial year and raised its dividend in an "outstanding year".
Shares in Volex were up 15% at 362.70 pence in London on Thursday afternoon.
Volex is a Hampshire, England-based specialist integrated manufacturer of critical power and data transmission products.
Revenue was up 19% at USD1.09 billion in the 12 months to the end of March from USD912.8 million a year ago.
Pretax profit climbed 25% to USD64.3 million from USD51.6 million, while operating profit was up 30% to USD82.9 million from USD63.9 million.
Basic earnings per share grew 19% to 25.9 US cents from 21.8 US cents.
The firm declared a final dividend of 3.0 pence per share, up 7.1% from 2.8p a year ago. The total dividend for the year is 4.5p, up 7.1% from 4.2p.
Volex reported organic growth of 11%, driven by a particularly strong performance in its Electric Vehicles and Consumer Electricals divisions.
Revenue grew 40% in Electric Vehicles to USD172.9 million, supported by new programme wins with new and existing customers. Consumer Electricals saw 9.6% organic revenue growth to USD257.0 million.
"Financial 2025 was an outstanding year for Volex, marked by strong growth, sustained margin performance and successful strategic execution. We have delivered this growth while maintaining operating margins at the upper end of our target range, in the face of inflationary pressure, demonstrating pricing power due to the criticality of our output for customers," said Executive Chair Nat Rothschild.
Volex said it expects to make further progress against its strategic ambitions in the new year, underpinned by a "diverse market presence, structural sector tailwinds, a robust pipeline of project opportunities and an ongoing focus on operational efficiency".
It said it expects a limited direct impact from the evolving tariff situation, given its "global footprint, manufacturing flexibility and strong customer lock-in".
"Tariffs and global trade dynamics remain front of mind for our customers. We view these challenges as opportunities and, as a result of our extensive international footprint, deep customer relationships and track record in complex programme relocations, we have a clear strategic advantage when it comes to helping our customers as they rethink and restructure their supply chains," said Executive Chair Rothschild.
Trading in financial 2026 to date is "very good, creating a strong start to the year and maintaining the momentum," Volex added.
The company said it "remains well positioned" to meet its five-year plan targets.
"We remain firmly on track to deliver our five-year strategic plan, underpinned by a healthy pipeline of organic initiatives and an active acquisition pipeline that is closely aligned with our strategic priorities and financial returns criteria. As we enter financial 2026, the business is in excellent shape and we are confident in our ability to maintain momentum, build on our success and continue delivering strong returns for all stakeholders," Rothschild said.
By Michael Hennessey, Alliance News reporter
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