Volex Lifts Revenue Forecast to $1.22B, Shares Climb 12%
Power component manufacturer Volex PLC (AIM:VLX) upgraded its profit expectations on March 25, 2026, projecting revenues will reach at least $1.22 billion for the fiscal year. The company, which produces power cables and data transmission products, also anticipates operating margins will finish slightly above its 9-10% target range. Investors reacted positively to the guidance, sending Volex shares up 12% to close at 484p.
AI Buildout Creates Power Component Windfall
The upgraded forecast stems directly from a surge in demand from artificial intelligence data centers. The rapid, large-scale construction of AI facilities is creating significant demand for essential power infrastructure, benefiting specialized suppliers like Volex. This trend is causing supply constraints for critical parts across the industry, with major projects like Micron Technology's Singapore expansion straining the global supply of components such as transformers. This industry-wide bottleneck places Volex in a strong position, as sustained high demand supports both order volume and pricing power.
CEO-Linked Trust Boosts Stake to 25.6%
Reinforcing the company's bullish outlook, a trust associated with CEO Lord Rothschild significantly increased its ownership position in mid-March. The entity acquired 44,049 Volex shares at an average price of 430.1 pence. This purchase increased Lord Rothschild's total beneficial interest to 47.4 million shares, representing approximately 25.6% of the company’s issued share capital. Such substantial insider buying ahead of a positive forecast revision signals strong management confidence in the company's strategic direction and future performance.
