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Volution
(LSE:FAN)
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Rating:76Outperform
Price Target:
782.00 p
▲(23.15% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong financial performance (solid revenue growth, healthy profitability, and robust cash flow). Technicals are constructive with price above key moving averages, but near-overbought RSI reduces upside confidence. Valuation is a mild headwind given the 23.8 P/E and only modest dividend yield.
Positive Factors
Strong Revenue Growth
Sustained revenue expansion indicates continued demand for Volution’s ventilation and indoor air quality products. Growth across new-build, renovation and replacement markets can support operating scale and strengthen the company’s market position over the medium term.
Negative Factors
Higher Financial Leverage
Rising leverage increases the company’s exposure to financing costs and reduces balance-sheet flexibility. Although the equity structure remains stable, elevated debt could constrain investment or shareholder returns if operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained revenue expansion indicates continued demand for Volution’s ventilation and indoor air quality products. Growth across new-build, renovation and replacement markets can support operating scale and strengthen the company’s market position over the medium term.
Read all positive factors
Volution (FAN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.28B
Dividend Yield1.75%
Average Volume (3M)484.49K
Price to Earnings (P/E)25.1
Beta (1Y)1.41
Revenue Growth26.72%
EPS Growth29.51%
CountryUK
Employees2,200
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.26
Shares Outstanding198,040,650
10 Day Avg. Volume621,835
30 Day Avg. Volume484,487
Financial Highlights & Ratios
PEG Ratio-7.02
Price to Book (P/B)4.98
Price to Sales (P/S)3.21
P/FCF Ratio17.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£865.00Price Target Upside36.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.4
Revenue Forecast (FY)£518.71M
Volution Business Overview & Revenue Model
Company Description
Volution Group plc, established in 2014 and headquartered in Crawley, United Kingdom, operates as a leading international manufacturer and supplier of ventilation and climate control systems. The company caters to both residential and commercial b...
How the Company Makes Money
Volution makes money primarily by selling ventilation and indoor air quality products to customers in the building and construction ecosystem. Revenue is generated from (1) product sales of ventilation units and systems (e.g., extractor fans and w...
Volution Earnings Call Summary
Earnings Call Date:Oct 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 08, 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.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%.
Negative Updates
Operating Profit Margin Reduction
Adjusted operating profit margin slightly reduced from 22.5% to 22.3% due to Fantech dilution.
Read all updates
Q4-2025 Updates
Positive
Negative
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%.
Read all positive updates
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
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 459.96M | 419.11M | 347.61M | 328.01M | 307.70M | 272.59M |
| Gross Profit | 223.87M | 205.62M | 178.27M | 143.36M | 127.80M | 110.16M |
| EBITDA | 109.36M | 91.04M | 82.76M | 79.13M | 73.11M | 58.38M |
| Net Income | 51.48M | 41.53M | 42.80M | 37.37M | 35.61M | 20.84M |
Balance Sheet | ||||||
| Total Assets | 690.58M | 602.45M | 430.31M | 440.65M | 411.37M | 383.98M |
| Cash, Cash Equivalents and Short-Term Investments | 106.35M | 18.78M | 18.24M | 21.24M | 14.63M | 19.96M |
| Total Debt | 290.35M | 183.42M | 85.99M | 120.46M | 108.03M | 108.32M |
| Total Liabilities | 402.78M | 332.47M | 184.39M | 214.40M | 203.06M | 198.69M |
| Stockholders Equity | 287.80M | 269.99M | 245.92M | 226.25M | 208.21M | 185.29M |
Cash Flow | ||||||
| Free Cash Flow | 78.70M | 78.41M | 68.33M | 56.83M | 31.97M | 45.73M |
| Operating Cash Flow | 86.57M | 84.97M | 75.71M | 64.79M | 38.98M | 50.43M |
| Investing Cash Flow | -31.50M | -115.34M | -19.59M | -37.48M | -24.26M | -46.69M |
| Financing Cash Flow | 44.92M | 30.54M | -58.83M | -17.82M | -19.63M | -2.40M |
Volution Technical Analysis
Positive
635.00
Price Trends
629.38
Positive
620.75
Positive
626.61
Positive
Market Momentum
8.26
Positive
51.35
Neutral
16.58
Positive
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 635 is below the 20-day moving average (MA) of 657.05, above the 50-day MA of 629.38, and above the 200-day MA of 626.61, indicating a neutral trend. The MACD of 8.26 indicates Positive momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 16.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FAN.
Volution Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £1.28B | 25.08 | 18.46% | 1.80% | 26.72% | 29.51% | |
66 Neutral | £82.28M | 11.19 | 18.04% | 5.10% | -3.47% | -21.11% | |
65 Neutral | £185.93M | 14.36 | 23.96% | 5.06% | -5.92% | 156.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £713.38M | 20.63 | 5.19% | 4.77% | 4.33% | -30.43% | |
56 Neutral | £9.56M | -265.63 | -0.34% | ― | 15.82% | 98.85% | |
54 Neutral | £291.55M | 952.94 | 0.15% | 3.60% | 6.87% | -91.28% |
* Industrials Sector Average
GB:FAN
Volution
652.00
11.38
1.78%
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Volution Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Volution buys German ventilation specialist getAir for €40m
Positive
Aug 4, 2026
Volution Group has acquired German-based getAir GmbH, a specialist in decentralised residential heat recovery ventilation systems, for €40 million in a cash- and debt-free deal funded from existing facilities. The business, founded in 2014 a...
Business Operations and StrategyRegulatory Filings and Compliance
Volution Clarifies Share Capital and Voting Rights for Investors
Positive
Aug 3, 2026
Volution Group plc has confirmed that its issued share capital stands at 200 million ordinary shares of 1 pence each, with 1,959,349 of these held in treasury, leaving 198,040,651 shares carrying voting rights. The company highlighted that this fi...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Volution lifts earnings outlook on strong margins and acquisitive growth
Positive
Jul 23, 2026
Volution Group expects adjusted earnings per share of about 38p for the year to 31 July 2026, roughly 4% above market consensus and representing 15% growth, underpinned by total revenue growth of around 15%. The performance reflects resilient 3% o...
Business Operations and StrategyFinancial Disclosures
Volution schedules pre-close trading update for 2026 year-end
Neutral
Jul 20, 2026
Volution Group plc, an international provider of energy efficient indoor air quality solutions, operates a portfolio of 30 brands across the UK, Continental Europe and Australasia. Its products and systems target a wide range of building types, po...
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.