Volution Group (LON:FAN) reported FY 2026 revenue, operating profit, earnings per share and cash generation growth of more than 15%, supported by margin expansion, acquisitions and growth across its Continental European and Australasian operations.
The ventilation products company said organic revenue growth was 2.8% on a constant-currency basis, slightly below its long-term 3% to 5% target range. However, it pointed to its geographically diverse operations and broader end-market exposure as supporting continued growth despite weaker conditions in parts of the U.K. construction market.
Acquisitions and balance sheet
The company completed its second-largest acquisition to date during the year, buying AC Industries in Australia in February. AC Industries supplies ventilation systems for copper and gold mines. Volution also acquired German decentralized heat-recovery ventilation company getAir shortly after the end of FY 2026.
Chief Financial Officer Andy O’Brien said Volution invested more than £200 million in its two largest acquisitions over the past two years, while ending FY 2026 with leverage of 1.5 times on an “old money ex-leases” basis. Leverage increased to about 1.8 times immediately following the getAir transaction.
“We do still feel there’s plenty of headroom and capacity on the M&A side of things,” O’Brien said. He added that, absent acquisitions, the company would expect to deleverage by roughly half a turn annually because of its cash generation.
Cash conversion was 107%, above Volution’s 90% target. Capital expenditure was slightly below expectations at roughly £9 million to £11 million, partly due to the timing of investments at Energy Recovery Industries, its North Macedonian heat-exchanger operation. Acquisition spending totaled £105 million during the year, including approximately £75 million for AC Industries and a £30 million deferred payment related to Fantech.
Return on invested capital rose 20 basis points and remained above 25%. O’Brien said AC Industries reduced the measure by 40 basis points in the year, while Fantech contributed a 20-basis-point improvement.
Regional performance
U.K. revenue was flat for the year, with first-half growth followed by a second-half decline. Volution described residential repair, maintenance and improvement activity and public housing as relatively resilient, while residential new-build conditions remained difficult. Its U.K. operating profit margin nevertheless rose 230 basis points to 28.3%, driven by product-cost initiatives, operational efficiencies and a more premium product mix.
The company said Irish new-build demand remained strong, particularly for low-carbon mechanical ventilation with heat recovery systems. It also reported strong export growth and said it is increasingly using its own internally produced motors in its products.
Management acknowledged that U.K. commercial revenue declined and called the performance disappointing, but said it was continuing to invest in the segment. Volution expanded capacity at its Dudley facility and said it sees room to improve its commercial position over time.
Continental Europe delivered 5.9% constant-currency organic growth, above Volution’s 3% to 5% range, and its operating margin edged higher to 24.3%. The Nordics performed well, while the Netherlands-based ClimaRad business recorded strong growth in decentralized heat recovery. France and Belgium remained challenging, although Volution characterized France as a relatively small market for the group, with about £10 million of revenue against approximately £150 million in Continental European sales.
Australasia posted reported revenue growth of 48.7%, reflecting acquisitions, while organic growth was 3.3%. The region’s adjusted operating margin was 22.2%. Volution said it is applying lessons from its U.K. operational transformation to Fantech and its broader Australasian business as it seeks further margin improvement.
AC Industries has performed strongly since its acquisition, management said, aided by demand for energy-efficient mine ventilation. The business also received an approximately AUD 12 million initial order for ventilation and cooling fans for data centers in Australia. Volution said it sees data centers as an additive opportunity rather than a business segment on which it intends to rely exclusively.
Product, sustainability and outlook
Volution said 72.1% of revenue came from low-carbon products. The proportion declined because of changes in the group’s acquisition mix, although management said low-carbon revenue increased on a like-for-like basis. Carbon intensity fell to 10.5 tonnes of carbon dioxide per £1 million of revenue, in line with the company’s long-term science-based targets.
The company used recycled plastics for 81.3% of the material processed in its facilities. While that percentage declined, Volution said absolute recycled-plastic usage increased as production volumes grew. Management also said the higher recycled content helps reduce exposure to virgin-plastic cost inflation.
Volution reported that its accident frequency rate rose to 0.29 during FY 2026, reversing a previous downward trend. Management said it was redoubling internal safety efforts.
Looking ahead, the company said FY 2027 has started well, with organic growth supplemented by a positive revenue contribution from AC Industries. Management said the challenging U.K. market outlook is already incorporated into its planning, while getAir’s integration is underway. Volution said it remains confident in delivering another year of progress and sustainable growth, supported by its product portfolio, acquisition pipeline and diversification across regions and end markets.
About Volution Group (LON:FAN)
Volution Group plc (LSE: FAN) is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics, Central Europe and Australasia.
