Structural End-market Growth (EVs, Data Centers)Volex's outsized growth in data centers (80% increase) and strong EV performance reflect durable secular demand for connectivity and power. These end-markets have multi-year investment cycles, supporting sustained revenue growth, higher utilisation of capacity and longer-term contract visibility.
Sustained Operating MarginsAchieving a 9.8% operating margin (top of target) alongside stable gross and EBITDA margins shows disciplined cost control and scalable manufacturing. Sustainable margins support reinvestment and returns even as volumes fluctuate, indicating durable operational competitiveness.
Healthy Balance Sheet And Cash GenerationModerate leverage (D/E 0.59), solid ROE and a balanced capital structure provide financial flexibility. Combined with strong operating cash generation (OCF/net income ~0.77) and improving covenant net debt, the company can fund capex, capacity expansion and strategic investments without excessive refinancing risk.