Specialist electronic products maker Volex (VLX) revealed its FY26 results would be ‘significantly ahead of current market expectations’. The firm also announced it was considering moving its listing from AIM to the Main Market. The shares jumped 10.6% to 480p on the trading update.
Raised sales and margin guidance
Thanks to strong trading in H2, Volex sees revenue for the year to March 2026 of at least $1.22 billion. That compares with the analyst consensus of $1.17 billion and a top estimate of $1.19 billion.
Underlying operating margins are also expected to be above the top end of the group’s 9% to 10% target range. The upgrade reflects both operating leverage from higher revenue and a continued focus on operational efficiency.
The outperformance has been driven mainly by continued demand for high-speed data transmission products for data-intensive AI applications. As a result, FY26 data centre revenue is now seen around double the $118 million achieved in FY25.
The group’s other end markets, including Electric Vehicles, Consumer Electricals and Medical, have traded broadly in line with H1. Volex has limited direct exposure to the Middle East so the board sees no material impact on the firm’s operations or near-term outlook.
Main Market move?
Since joining AIM in 2018, Volex has grown materially in respect of revenue, profitability and market capitalisation. A move to the Main Market could create greater liquidity in the shares and attract a wider range of investors.
Moreover, given its size it would be eligible for inclusion in the FTSE 250, enhancing its reputation with global customers. The firm will provide more detail on its future plans at its Capital Markets Day on 22 April.
Volex shares have had a great run, more than doubling from their April 2025 low of around 200p. Yet despite all the excitement over AI and data centres, they still haven’t topped their post-pandemic highs.
Today’s update clearly shows how central the firm is to the AI story and the strength of customer demand. The fact it has little direct exposure to the Middle East is a bonus.
Moving to the Main Market probably makes sense as AIM – originally the Alternative Investment Market – is too small for a business like Volex. Inclusion in the FTSE 250 would be added kudos and as the firm says would open it up to a wider investor base.
Read the press release here: https://www.volex.com/investors
