Volex (VLX) has set a conservative data centre growth forecast of just 5% for the year ahead, even as surging AI capital expenditure by the world’s biggest technology companies pushed the connectivity products group’s revenue to $1,242.6 million in the year to the end of March, up from $1,086.5 million a year earlier, according to the company’s preliminary FY2026 results.
Organic growth came in at 14.2%, led by strong demand from data centre customers. In sterling terms, revenue came in at just under £1bn, a 14.4% increase on the prior year.
Volex Data Centre Growth Capped as Rothschild Eyes Broader Opportunity
The Hampshire-based group’s Complex Industrial Technology unit, which covers data centre work used in AI infrastructure, reported a jump in turnover of more than 50% for the period. Despite that, chief executive Nat Rothschild told City AM the company was deliberately limiting its data centre growth projection.
‘What gets me excited about the business is actually the non-data centre business,’ Rothschild said. ‘What’s interesting about Volex as a business and as an investor today is the diversity.’
He added: ‘We’ve been incredibly conservative on the data centre side of the business and there’s a real opportunity to exceed that [five per cent] but we are absolutely not hanging our hat on data centres that will take us to $2bn [turnover], quite the opposite.’
‘We’re absolutely not a one trick pony and whatever happens with data centres and AI Volex will continue to go from strength to strength.’
Profits Rise as Net Debt Falls
Underlying operating profit rose 19.9% to $127.3 million in FY2026, up from $106.2 million the prior year, driven by volume growth, operational efficiencies and a better product mix, the results showed.
Underlying free cash flow held steady at $42.3 million, fractionally above the $42.2 million recorded in FY2025. Cash conversion eased to 63.9% from 67.2%, as the company built working capital to meet data centre demand.
Net debt before operating lease liabilities fell 4.6% to $121.5 million at the year-end, down from $127.4 million twelve months earlier.
The FY2026 revenue figure also means Volex has surpassed the $1.2 billion target it set at its FY2025 investor presentation as a goal for FY2027, a year ahead of schedule.
£40m Buyback and Main Market Move
Alongside the results, Volex launched a £40 million share buyback programme and confirmed plans to transfer its listing from AIM to the Main Market of the London Stock Exchange, according to a Halifax research note on the announcement.
Volex shares closed down 1.2% at 575p on Thursday. The stock is up 39% since the start of the year.
AI Capex Backdrop Keeps Investor Attention on Data Centres
The cautious internal forecast comes as investors question how long the current wave of AI-related capital spending can continue. Combined capex from Meta, Alphabet, Microsoft and Amazon is expected to reach $750bn (£560bn) this year.
Alphabet has been among the most active in capital markets to fund that spend. In November 2025, the company sold $17.5 billion of bonds in the US alongside €6.5 billion of notes in Europe in a concurrent offering totalling approximately $25 billion, according to Bloomberg.
A further debt sale in February 2026 exceeded $30 billion, according to CNBC, which cited people familiar with the matter. Alphabet has said it expects capital expenditure of up to $185 billion in 2026, more than double its 2025 level.
For Volex, the listing upgrade to the Main Market is the next near-term milestone. The move is expected next month and will expand the company’s potential investor base, including eligibility for inclusion in FTSE indices.
