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Volution Group Plc (GB:FAN)
LSE:FAN

Volution (FAN) AI Stock Analysis

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GB:FAN

Volution

(LSE:FAN)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
721.00p
▲(10.92% Upside)
Volution's strong financial performance and positive earnings call sentiment are the primary drivers of its score. While technical indicators suggest a neutral trend, the high P/E ratio indicates potential overvaluation. The company's robust cash flow and strategic growth initiatives support its stability and future prospects.
Positive Factors
Revenue Growth
Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Cash Conversion
High cash conversion and reduced leverage enhance financial flexibility, enabling strategic investments and debt management.
Sustainability Progress
Focus on low carbon products aligns with global sustainability trends, potentially increasing market share and regulatory compliance.
Negative Factors
Operating Profit Margin Reduction
Margin reduction may signal cost pressures or inefficiencies, potentially affecting profitability if not addressed.
Challenges in Continental Europe
Weak performance in key regions could hinder overall growth and necessitate strategic adjustments to regain market strength.
Increased Financing Costs
Rising finance costs can strain earnings and cash flow, potentially limiting future investment capacity and impacting net income.

Volution (FAN) vs. iShares MSCI United Kingdom ETF (EWC)

Volution Business Overview & Revenue Model

Company DescriptionVolution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom, Continental Europe, Australasia, and internationally. The company offers unitary extractor fans for use in bathrooms and kitchens; MVHR and MEV systems; rigid, semi-rigid, and flexible ducting products and accessories; mechanical heat recovery units; air handling units, fan coils, and hybrid ventilation products; underfloor heating, heated towel rails, radiators, and storage and panel heaters; wall, box, and tower fans, as well as portable air conditioners; hand dryers and insect killers; and sensors, controllers, and ducting products. It also manufactures blowers and motors for the heating and ventilation industry, such as direct and belt-drive fans, fandecks, double inlet centrifugal blowers, motorized impellers, and combustion blowers. The company sells its products principally under the Vent-Axia, Manrose, Diffusion, Airtech, National Ventilation, Breathing Buildings, Torin-Sifan, Fresh, PAX, VoltAir, Kair, Air Connection, inVENTer, Ventilair, ClimaRad, ERI, Rtek, Simx, and Ventair brands. Volution Group plc was incorporated in 2014 and is based in Crawley, the United Kingdom.
How the Company Makes MoneyVolution generates revenue through the sale of its ventilation products, which are marketed to contractors, distributors, and end-users in the construction and building maintenance sectors. Key revenue streams include direct sales of products, installation services, and ongoing maintenance contracts. The company also benefits from strategic partnerships with construction firms and HVAC contractors, which help to expand its market reach and customer base. Additionally, Volution invests in research and development to innovate and improve its product offerings, enabling it to capture a larger share of the growing demand for energy-efficient building solutions.

Volution Earnings Call Summary

Earnings Call Date:Oct 09, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with significant revenue growth, successful acquisitions, and strategic geographic expansion. While there were minor challenges such as a slight reduction in profit margins and regional market weaknesses, the positive aspects, particularly the strong cash conversion, geographic diversification, and sustainability progress, outweigh the negatives.
Q4-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue increased by 20.6%, with a 5.7% organic growth on a constant currency basis. The highest revenue growth was in the U.K. at 9.5%.
Successful Acquisition
The Fantech acquisition contributed significantly to inorganic revenue growth, making it the largest acquisition to date.
Cash Conversion and Leverage
Cash conversion was 109%, and leverage decreased to 1.2x despite significant acquisitions.
Sustainability Progress
Significant progress on ESG metrics, with 77.3% of revenue from low carbon sales and improvements in accident frequency rate.
Geographic Expansion
Increased presence from 4 to 17 countries, with 63% of revenue from non-U.K. customers.
Strong Performance in Australasia
Adjusted operating profit increased by 83.5% in the Australasia region, largely due to the Fantech acquisition.
Negative Updates
Operating Profit Margin Reduction
Adjusted operating profit margin slightly reduced from 22.5% to 22.3% due to Fantech dilution.
Challenges in Continental Europe
The market in Germany and the Nordics remains weak, impacting overall performance in these regions.
OEM Segment Challenges
The OEM segment had been a drag on performance over the last few years but showed signs of improvement.
Increased Financing Costs
Finance costs increased by 40% year-over-year due to borrowings for Fantech and ClimaRad acquisitions.
Company Guidance
In the recent call, Volution reported a strong fiscal year 2025, highlighting several key metrics. Revenue increased by 20.6%, or nearly 22% on a constant currency basis, with organic revenue growth at 5.7%. The highest revenue growth was seen in the U.K. at 9.5%, supported by regulatory developments. Despite a slight reduction in adjusted operating profit margin to 22.3% due to the Fantech acquisition, the organic margin expanded by 50 basis points. Cash conversion was robust at 109%, and the company maintained a leverage ratio of 1.2x after significant acquisitions. Return on invested capital stood at 25.2%. The company also made progress in ESG initiatives, with 71.2% of revenue from low carbon sales and an improvement in the accident frequency rate. Looking forward, Volution is optimistic about continued organic and inorganic growth, supported by strategic investments in capacity and operational excellence.

Volution Financial Statement Overview

Summary
Volution demonstrates strong financial health with impressive revenue growth and profitability. Despite increased leverage, the company's cash flow generation remains robust, supporting its financial stability.
Income Statement
Volution has demonstrated strong revenue growth with a 15.47% increase in the latest year, supported by a solid gross profit margin. The net profit margin is healthy, indicating efficient cost management. However, a slight decline in EBIT suggests potential challenges in operational efficiency.
Balance Sheet
The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose risks if not managed carefully. However, the return on equity remains strong, reflecting effective use of equity to generate profits. The equity ratio suggests a stable financial structure.
Cash Flow
Volution's cash flow performance is robust, with a positive free cash flow growth rate and strong operating cash flow to net income ratio. This indicates good cash generation relative to earnings, although the growth rate has slowed compared to previous years.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue419.11M419.11M347.61M328.01M307.70M272.59M
Gross Profit205.62M205.62M178.27M143.36M127.80M110.16M
EBITDA91.04M91.04M82.76M79.13M73.11M58.38M
Net Income41.53M41.53M42.80M37.37M35.61M20.84M
Balance Sheet
Total Assets602.45M602.45M430.31M440.65M411.37M383.98M
Cash, Cash Equivalents and Short-Term Investments18.78M18.78M18.24M21.24M14.63M19.96M
Total Debt183.42M183.42M85.99M120.46M108.03M108.32M
Total Liabilities332.47M332.47M184.39M214.40M203.06M198.69M
Stockholders Equity269.99M269.99M245.92M226.25M208.21M185.29M
Cash Flow
Free Cash Flow78.41M78.41M68.33M56.83M31.97M45.73M
Operating Cash Flow84.97M84.97M75.71M64.79M38.98M50.43M
Investing Cash Flow-106.85M-115.34M-19.59M-37.48M-24.26M-46.69M
Financing Cash Flow26.75M30.54M-58.83M-17.82M-19.63M-2.40M

Volution Technical Analysis

Technical Analysis Sentiment
Positive
Last Price650.00
Price Trends
50DMA
630.64
Positive
100DMA
631.12
Positive
200DMA
609.87
Positive
Market Momentum
MACD
5.06
Negative
RSI
57.95
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FAN, the sentiment is Positive. The current price of 650 is above the 20-day moving average (MA) of 636.55, above the 50-day MA of 630.64, and above the 200-day MA of 609.87, indicating a bullish trend. The MACD of 5.06 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FAN.

Volution Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£1.24B30.0816.10%1.68%20.57%-3.18%
74
Outperform
£295.93M23.3810.01%3.48%-3.93%41.83%
71
Outperform
£804.15M16.387.68%3.19%5.88%107.36%
66
Neutral
£91.22M9.8325.06%4.63%12.60%6.64%
65
Neutral
£170.65M33.849.50%4.39%-3.51%-67.38%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
52
Neutral
£10.97M-3.40-11.61%-27.62%-228.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FAN
Volution
650.00
137.54
26.84%
GB:ALU
Alumasc
264.00
-32.82
-11.06%
GB:NXR
Norcros
326.00
85.33
35.46%
GB:GEN
Genuit Group
328.50
-14.51
-4.23%
GB:TON
Titon Holdings
97.50
17.50
21.88%
GB:SRAD
Stelrad Group Plc
138.00
2.50
1.85%

Volution Corporate Events

Financial DisclosuresShareholder Meetings
Volution Group Passes AGM Resolutions Amid Shareholder Concerns
Neutral
Dec 10, 2025

Volution Group plc announced that all resolutions proposed at its Annual General Meeting were passed, including those related to directors’ re-elections and financial matters. However, the resolution concerning the disapplication of pre-emption rights received significant opposition, with over 20% of votes against it. The board plans to engage with shareholders to understand their concerns and will provide an update within six months. This outcome highlights potential shareholder concerns regarding governance practices, which the company aims to address.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and StrategyM&A Transactions
Volution Group Expands with Strategic Acquisition of AC Industries
Positive
Dec 10, 2025

Volution Group plc has announced the acquisition of AC Industries, a specialist in ventilation ducting solutions for underground mines, for up to AUD$178.9 million. This strategic acquisition aligns with Volution’s commitment to energy efficiency and healthy air, expanding their presence in the Australasian market. The deal is expected to enhance Volution’s capabilities in serving mining applications and is projected to be immediately earnings accretive, strengthening their market position and offering significant growth potential.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Volution Group Reports Strong Revenue Growth and Announces Strategic Acquisition
Positive
Dec 10, 2025

Volution Group plc reported a strong start to FY 2026 with a 5% organic revenue growth at constant currency, complemented by a 25% inorganic growth from the previous year’s acquisition of Fantech, resulting in a total revenue growth of over 30% for the first four months. The company also announced the acquisition of AC Industries in Sydney, Australia, for AUD$150 million, which is expected to be immediately earnings accretive, further enhancing Volution’s market presence and operational capabilities.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Regulatory Filings and Compliance
Volution Group Announces Total Voting Rights Update
Neutral
Dec 1, 2025

Volution Group plc has announced its total voting rights, detailing that its issued share capital consists of 200,000,000 ordinary shares, with 198,407,208 shares carrying voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Volution Group Strengthens Leadership with New Director Appointment
Positive
Nov 19, 2025

Volution Group plc has announced the appointment of Celia Baxter as a non-executive director of Genus plc, effective from November 19, 2025. This move is part of Volution’s strategic efforts to strengthen its leadership team, potentially enhancing its industry positioning and stakeholder confidence.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Other
Volution Group Director Increases Stake with Share Purchase
Positive
Nov 12, 2025

Volution Group plc announced that Celia Baxter, an independent Non-Executive Director, purchased 3,719 ordinary shares at 628.38 pence each on the London Stock Exchange. This transaction highlights the confidence of the company’s leadership in its market position and future prospects, potentially strengthening stakeholder trust and enhancing its industry standing.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Regulatory Filings and Compliance
Volution Group Announces Total Voting Rights
Neutral
Nov 3, 2025

Volution Group plc has announced its total voting rights, with an issued share capital of 200,000,000 ordinary shares, of which 198,373,681 carry voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Other
Volution Chairman Increases Stake with Share Purchase
Positive
Oct 24, 2025

Volution Group plc announced that its Chairman, Nigel Lingwood, has purchased 10,215 ordinary shares at £6.6398 per share, indicating confidence in the company’s future prospects. This transaction, conducted on the London Stock Exchange, may reflect a positive outlook from the leadership, potentially influencing stakeholder perceptions and market positioning.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Volution Group Releases 2025 Annual Report and AGM Notice
Neutral
Oct 22, 2025

Volution Group plc has released its Annual Report and Accounts for 2025, along with the Notice of its Annual General Meeting. These documents have been made available to shareholders on the company’s website and submitted to the Financial Conduct Authority’s National Storage Mechanism for inspection. This announcement underscores Volution’s commitment to transparency and regulatory compliance, potentially impacting its operational credibility and stakeholder trust.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Volution CFO Exercises LTIP Options, Retains Shares
Neutral
Oct 17, 2025

Volution Group plc announced that Andy O’Brien, the Chief Financial Officer, exercised options under the company’s Long Term Incentive Plan (LTIP) on October 16, 2025. He acquired 198,662 shares, sold 93,607 shares to cover tax and costs, and retained 105,055 shares. This transaction reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting market perceptions and stakeholder confidence.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Volution Group Announces Executive Incentive Awards
Positive
Oct 16, 2025

Volution Group plc has announced the granting of awards under its 2023 Long Term Incentive Plan (LTIP) and Deferred Share Bonus Plan (DSBP) to its Executive Directors. These awards are part of the company’s strategy to align executive compensation with performance targets, including earnings per share growth and ESG measures, over a three-year period. The LTIP awards, which are nil-cost options, will vest based on performance criteria, while the DSBP awards are conditional and will vest in 2028. This move is expected to enhance the company’s operational focus and incentivize leadership towards achieving strategic goals.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £820.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and Strategy
Volution Group Announces Vesting and Sale of Share Awards
Neutral
Oct 15, 2025

Volution Group plc announced the vesting, exercise, and sale of share awards under its Deferred Share Bonus Plan, which was granted on 12 October 2022. The awards, which were not subject to performance conditions, have vested after a three-year deferral period. Ronnie George, CEO, and Andy O’Brien, CFO, sold their vested shares at £6.56 each, reflecting a strategic move in managing their shareholdings. This transaction highlights the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting stakeholder perceptions and market positioning.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £780.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Volution Group Reports Robust Growth and Strategic Expansion
Positive
Oct 9, 2025

Volution Group plc reported strong financial results for the year ending July 31, 2025, with a 20.6% increase in revenue and a 19.7% rise in adjusted operating profit. The company’s acquisition of Fantech in Australasia significantly contributed to inorganic growth, boosting revenues and expanding its market presence. Despite a challenging economic environment, Volution maintained a robust operating margin and excellent cash conversion, underscoring its strategic focus on growth and operational efficiency. The company also reported improvements in employee engagement and sustainability metrics, such as increased use of recycled plastics.

The most recent analyst rating on (GB:FAN) stock is a Hold with a £647.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Regulatory Filings and Compliance
Volution Group Announces Total Voting Rights Update
Neutral
Oct 1, 2025

Volution Group plc announced its total voting rights as of October 1, 2025, with an issued share capital of 200,000,000 ordinary shares, of which 2,002,224 are held in Treasury, resulting in 197,997,776 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Hold with a £647.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 11, 2025