Shares in Volex PLC (AIM:VLX) rose 6.5% to 377p after the manufacturer of power and data transmission products reported a strong first-half performance and reaffirmed its full-year outlook.
The company expects to report revenue of over $575 million for the six months to 30 September, with organic growth of at least 11%.
Gains were led by its electric vehicles and complex industrial technology divisions, while data centre demand was highlighted as particularly strong. Off-highway revenues also rose, supported by a one-off project.
Margins remained solid despite regional cost pressures, with the company anticipating an operating profit margin in the upper half of its 9–10% target range. Volex said this underlines its ability to balance investment with operational discipline.
Medical revenues were softer, as customers reassessed healthcare budgets and reduced inventories.
Meanwhile, a few new programmes in the electric vehicle and industrial tech units have been delayed due to shifts in customer manufacturing strategies, though these are expected to contribute from FY2027 onwards.
The company sees opportunities from global production reconfigurations linked to trade tariffs and has been actively working with clients to adapt to changing supply chain strategies.
Looking ahead, Volex expects second-half revenue to remain in line with the first half, supported by stable trading across its end-markets. It also signalled its readiness to pursue further acquisitions, backed by a strong balance sheet and access to funding.