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Volex Lifts Full-Year Outlook After Strong Q3 Driven by AI-Led Data Centre Demand

Story Highlights
  • Volex delivered 14.8% organic revenue growth, led by strong data centre demand.
  • Robust margins and lower leverage support higher full-year guidance and continued investment.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Volex Lifts Full-Year Outlook After Strong Q3 Driven by AI-Led Data Centre Demand

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Volex plc ( (GB:VLX) ) just unveiled an announcement.

Volex plc reported a strong third quarter, with group revenue reaching $902.7 million for the nine months to 31 December 2025, representing 14.8% year-on-year organic constant currency growth. The performance was driven in particular by robust demand in Complex Industrial Technology, notably from data centre customers investing in AI and digital infrastructure, while electric vehicles and off-highway also delivered organic growth. Medical and consumer electricals remained weaker versus the prior year due to customer destocking and softer European appliance demand, but overall underlying operating margins held at the upper end of the company’s 9–10% target range, supported by pricing discipline, efficiency gains and tight cost control. Net debt continued to fall, bringing covenant leverage to around 1.0x and leaving the balance sheet strong enough to support further investment in capacity, automation, vertical integration and selective M&A. On the back of this momentum and good visibility into year-end, the board now expects full-year revenue and underlying operating profit to come in ahead of market expectations, reinforcing Volex’s positioning in structurally attractive sectors and underpinning management’s confidence in its five-year growth plan and long-term value creation for shareholders.

The most recent analyst rating on (GB:VLX) stock is a Buy with a £498.00 price target. To see the full list of analyst forecasts on Volex plc stock, see the GB:VLX Stock Forecast page.

Spark’s Take on GB:VLX Stock

According to Spark, TipRanks’ AI Analyst, GB:VLX is a Outperform.

Volex plc’s strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company’s strategic focus on growth sectors like electric vehicles and data centers, along with stable financials, positions it well for future success. Technical analysis and valuation are neutral, indicating a balanced risk-reward profile.

To see Spark’s full report on GB:VLX stock, click here.

More about Volex plc

Volex plc is a UK-headquartered integrated manufacturer specialising in mission-critical power and data connectivity solutions. Serving global blue-chip customers across electric vehicles, consumer electricals, medical, complex industrial technology and off-highway markets, the group operates 25 manufacturing facilities with 13,000 employees, supplying OEMs and EMS companies worldwide in support of increasingly data-intensive and electrified applications.

Average Trading Volume: 456,467

Technical Sentiment Signal: Buy

Current Market Cap: £767.7M

Find detailed analytics on VLX stock on TipRanks’ Stock Analysis page.

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