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Highlights
- Victrex delivered 12% volume growth, reaching 4,164 tonnes during FY2025.
- Underlying profit before tax decreased 21% to GBP 46.4 million in FY2025, impacted by FX, China start-up costs, and sales mix.
- The company initiated a profit improvement plan targeting at least GBP 10 million in savings with full-year benefits expected by FY2027.
Victrex plc (LSE:VCT) has released its audited preliminary results for the year ended 30 September 2025 (FY2025), reporting higher volumes, broadly stable average pricing in key markets, and progress on a multi-year profit improvement plan. The company also outlined updated capital allocation priorities and guidance for FY2026.
FY2025 Results with Higher Volumes and Stable Pricing Trends
Victrex reported group volumes of 4,164 tonnes for FY2025, compared with 3,731 tonnes the previous year. Growth was primarily driven by VARs and Energy & Industrial end markets. Revenue increased 1% year-on-year, supported by continued demand across several sectors.
The average selling price for the year was GBP 70 per kilogram, compared with GBP 78 per kilogram in FY2024. The company noted that approximately 80% of the year-on-year ASP movement was attributable to sales mix and currency effects, while like-for-like pricing for non-VAR and Energy & Industrial markets remained broadly stable.
Medical revenue reached GBP 58.8 million, a decrease of 5%, with the Spine segment lower year-on-year. Growth of 7% was recorded in the Non-Spine business, including 12% expansion in Non-Implantable Medical applications.
Profitability Influenced by FX, Sales Mix and China Plant Costs
Underlying profit before tax was GBP 46.4 million, down 21% compared with FY2024, largely due to FX impacts, China start-up costs, and changes in sales mix. On a constant currency basis, the reduction was 10%.
Reported profit before tax increased 44% to GBP 33.8 million, reflecting a lower level of exceptional items compared to the previous year. Gross margin closed the year at 45.3%, a 90-basis-point reduction influenced by mix, FX, and an GBP 8 million impact from the new China plant.
Operating cash conversion improved to 121%, up from 114% in FY2024. Net debt at year-end was GBP 24.8 million, with cash of GBP 24.2 million and net debt/EBITDA of 0.34x.
Profit Improvement Plan and Updated Capital Allocation
Victrex confirmed that its profit improvement plan is underway, targeting at least GBP 10 million in additional savings, with full impact expected in FY2027. A broader operational review is set for FY2026, aimed at enhancing commercial, cost, and operating efficiency.
The company updated its capital allocation policy, maintaining dividends at the FY2024 level, including a proposed final dividend of 46.14p per share. A net debt/EBITDA range of 0.5x–1.0x has been established, with the potential for additional cash returns such as buybacks or special dividends when leverage is sustainably below 0.5x.
FY2026 Outlook
Victrex expects low to mid-single-digit percentage volume growth in FY2026, with ASPs broadly consistent with FY2025. Gross margin is anticipated to remain flat to slightly higher, within a range of 45.5% to 46.5%. Currency is expected to have a GBP 2–3 million adverse impact based on current exchange rates. Normal seasonality and FX impacts are expected to result in a second-half weighting for FY2026.
Victrex shares last traded at GBP 635.00 on 1 December 2025.
