Victrex PLC

Latest Results (16.10.2025):

Victrex PLC reported strong interim results for the first half of 2025, showcasing a 16% increase in group sales volume and a 5% rise in revenue compared to H1 2024. While profit before tax was impacted by foreign exchange rates, China operations, and sales mix, the company demonstrated robust cash conversion and maintained its dividend.

Volume Growth

Group sales volume reached 2,018 tonnes in H1 2025, up 16% year-on-year, driven by a significant 30% increase in Value Added Resellers (VARs). This marks the first half-year surpassing 2,000 tonnes since H2 2022, with strong performances in Electronics (+17%) and Energy & Industrial (+15%) sectors.

Revenue Performance

Group revenue grew by 5% to £145.9 million in H1 2025 compared to £139.3 million in H1 2024, and increased by 8% on a constant currency basis. The rise in revenue was supported by higher volumes, although it was partially offset by a 10% decrease in the average selling price due to a favorable sales mix.

Profitability

Underlying profit before tax decreased by 17% to £23.2 million in H1 2025, remaining flat in constant currency. Reported profit before tax surged by 421% to £17.2 million, despite a £5 million headwind from foreign exchange rates. Gross margin declined to 44.1% from 48.0% due to sales mix changes and operational challenges in China.

Operational Improvements

Victrex continues to drive operational efficiency through initiatives such as Project Vista, which enhances the go-to-market strategy and supports Sustainable Solutions. The company also launched a new ERP system to improve digital solutions and reduce the cost to serve, alongside maintaining strong cost control measures.

Cash Generation

Cash conversion improved significantly to 128% in H1 2025 from 64% in H1 2024. Net debt decreased to £40.7 million from £49.8 million, and inventory levels were reduced by £12.3 million year-on-year. Capital expenditures were also lowered to £8.6 million, following the completion of the investment phase.

Key Milestones

A major achievement in H1 2025 was the TechnipFMC contract award from Petrobras for the ‘Magma’ mega-programme, a composite pipe solution for the energy industry. This contract supports the scale-up of 'Magma' with increased volumes expected from FY 2026 onwards.

Outlook

Victrex has upgraded its full-year volume guidance to high-single digit growth, despite ongoing macroeconomic uncertainties. The company expects substantial improvement in PBT in the second half of 2025, driven by sustained volume momentum and operational enhancements, although headwinds from foreign exchange and China operations are anticipated to persist.