Volex shares up 20% as underlying operating profit to beat consensus

Volex PLC on Tuesday said it expects to report annual underlying operating profit ahead of current market expectations, citing its "strength of trading" in the first four months.

Volex shares jumped 21% to 648.00 pence each on Tuesday morning in London.

The Hampshire, England-based maker of power and data transmission products is holding its annual general meeting on Tuesday.

In a statement ahead of the event, Volex cited a market consensus average of USD138.3 million for underlying operating profit for the financial year ending March 31, 2027, with a range of USD135.3 million to USD141.3 million. The consensus average would be 8.6% higher than USD127.3 million it had reported for financial 2026.

The expected consensus beat is "as a result of the strength of trading in the opening months and the operating leverage inherent within the business model," Volex said.

For financial 2027 revenue, the company cited a market consensus average of USD1.34 billion, which would be up 7.7% from USD1.24 billion in financial 2026. The range of market expectations is between USD1.33 billion and USD1.35 billion.

Volex also on Tuesday reported organic revenue growth of 28% at constant currency in the first four months of its financial year which started on April 1. The jump in revenue built progressively as new programmes at its Data Centres division amped up, Volex said, adding that it expects year-on-year growth rates to normalise over the rest of the year as that effect annualises.

Sequential trading is a better indicator to underlying momentum, Volex said, with average monthly revenue in the first four months of its financial year 8% higher than the monthly average for the second half of financial 2026.

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