Victrex (VCT) H1 2026 earnings summary

Executive summary

• Revenue increased 1% year-over-year to £147.1m, driven by 6% volume growth, with a weak Q1 offset by a strong Q2.

• Underlying profit before tax (PBT) declined 18% to £19.0m, impacted by adverse mix, pricing pressure, and currency headwinds.

• A non-cash impairment of £60.6m was recorded for the China manufacturing facility due to operational limitations, not demand.

• Profit improvement plan underway, including a 10% global headcount reduction and new decentralized structure, targeting £10m annualised cost savings by FY 2027.

• Interim dividend maintained at 13.42p per share.

Financial highlights

• Revenue: £147.1m, up 1% (2% in constant currency), with group sales volume up 6% to 2,137 tonnes.

• Gross profit: £61.3m, down 5% year-over-year; gross margin at 41.7%, down 240bps.

• Underlying EPS: 17.2p, down 24%; basic loss per share was (37.0p).

• Free cash flow: £22m, with cash conversion at 109%.

• Net debt: £45.4m, net debt/EBITDA at 0.65x.

Outlook and guidance

• FY 2026 underlying PBT expected between £42m–£44m.

• Full-year gross margin expected slightly below prior year (45.3%), with H2 improvement anticipated.

• Exceptional items for FY 2026 anticipated at £75m–£85m, mainly from China impairment.

• CapEx to remain below 8–10% of revenues.

• Strategy update and further portfolio review to be communicated at Capital Markets Day in September 2026.