Shares in Volex PLC (AIM:VLX) rose more than 8% to 441.65p after the power and data transmission manufacturer said it now expects full-year revenue and operating profit to exceed current market expectations following a strong third-quarter performance.
The company reported revenue of $902.7 million for the nine months to 31 December, representing organic constant currency growth of 14.8% year-on-year.
Growth was led by its Complex Industrial Technology division, driven by continued demand from data centre customers amid rising global investment in AI and digital infrastructure.
Volex said underlying operating margins were at the upper end of its 9-10% target range, supported by cost control and operational efficiencies.
Chief executive Nat Rothschild said the performance reflects "strong execution across the group and the benefits of our exposure to structurally attractive markets", with demand from data centre customers particularly strong amidst global investment in AI and digital infrastructure.
He added: "With good momentum into the final quarter, we now expect to exceed current market expectations, thereby giving increased confidence in achieving our five-year plan targets. Looking further out, we remain well positioned to deliver sustainable, long-term value for shareholders."
Volex reported further reductions in net debt, with leverage now around 1.0x, giving the group flexibility to continue investing in growth initiatives, including capacity expansion and automation.