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Volution
(LSE:FAN)
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Rating:77Outperform
Price Target:
741.00 p
▲(8.65% Upside)
Action:Reiterated
Date:10/09/26
The score is driven primarily by strong financial performance (profitability, deleveraging, and cash generation) and a constructive earnings-call outlook emphasizing continued progress and disciplined growth. Offsetting factors are a mixed technical picture with limited momentum and a valuation that appears fair rather than clearly attractive, alongside noted pockets of weaker organic growth and U.K. market softness.
Positive Factors
Strong FY26 growth and earnings execution
Broad-based growth across revenue, operating profit, earnings and cash generation indicates strong execution rather than reliance on a single metric. Meeting or exceeding long-term targets supports reinvestment, strengthens operating leverage and provides a durable base for continued earnings compounding.
Negative Factors
Organic growth below target
Organic growth below the stated target indicates that underlying demand and market expansion are not yet consistently matching management's ambitions. With growth split roughly evenly between price and volume, sustained improvement may require stronger volume trends rather than pricing alone.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong FY26 growth and earnings execution
Broad-based growth across revenue, operating profit, earnings and cash generation indicates strong execution rather than reliance on a single metric. Meeting or exceeding long-term targets supports reinvestment, strengthens operating leverage and provides a durable base for continued earnings compounding.
Read all positive factors
Volution (FAN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.28B
Dividend Yield1.75%
Average Volume (3M)634.89K
Price to Earnings (P/E)20.4
Beta (1Y)1.28
Revenue Growth15.67%
EPS Growth50.33%
CountryUK
Employees2,312
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.32
Shares Outstanding198,050,640
10 Day Avg. Volume595,185
30 Day Avg. Volume634,889
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)3.96
Price to Sales (P/S)2.53
P/FCF Ratio13.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£838.33Price Target Upside22.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.41
Revenue Forecast (FY)£525.77M
Volution Business Overview & Revenue Model
Company Description
Volution Group plc, established in 2014 and headquartered in Crawley, United Kingdom, operates as a leading international manufacturer and supplier of ventilation and climate control systems. The company caters to both residential and commercial b...
Volution Earnings Call Summary
Earnings Call Date:Oct 08, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported greater than 15% growth in revenue, operating profit, EPS and cash generation, margin expansion to 23.2%, 107% cash conversion, returns on invested capital above 25%, successful acquisitions and a positive start to FY27. The main challenges were organic growth of 2.8%, a difficult and declining U.K. market, weaker U.K. commercial revenue, selected Continental European challenges, higher finance costs and an increased accident frequency rate. Management nevertheless expressed confidence in sustainable growth and another year of good progress.Positive Updates
Strong FY26 Financial Performance
Revenue, operating profit, adjusted earnings per share and cash generation all increased by greater than 15% in FY26, meeting or exceeding the company's long-term target of above 15% for those metrics.
Negative Updates
Organic Growth Slightly Below Target
Organic revenue growth was 2.8% on a constant-currency basis, slightly below the bottom end of the company's 3% to 5% target range. Growth was roughly evenly split between price and volume.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong FY26 Financial Performance
Revenue, operating profit, adjusted earnings per share and cash generation all increased by greater than 15% in FY26, meeting or exceeding the company's long-term target of above 15% for those metrics.
Read all positive updates
Company Guidance
Management said the year has started well, with the group delivering organic growth alongside a positive revenue contribution from AC Industries, and expects AC Industries to underpin organic growth this year; the U.K. will be challenging but is fully baked into its view, while the group remains confident of delivering another year of good progress and sustainable growth, with no material difference in its outlook to what it has delivered in the past. Long-term targets remain organic growth of 3% to 5%, operating margin of 20% and above, return on invested capital of 20% and above, and adjusted earnings per share growth of over 10%; management also said margins could remain in the low 20s, CapEx would normally be GBP 9 million, GBP 10 million, GBP 11 million range with more in 2027, a year with 0 M&A would delever about 0.5 turn per year, and if it did nothing else this year, it probably ends the year at 1.3, 1.4 leverage after getAir took it to 1.8.Volution Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 484.80M | 419.11M | 347.61M | 328.01M | 307.70M |
| Gross Profit | 229.60M | 205.62M | 178.27M | 143.36M | 127.80M |
| EBITDA | 98.40M | 99.31M | 82.76M | 79.13M | 73.11M |
| Net Income | 62.50M | 41.53M | 42.80M | 37.37M | 35.61M |
Balance Sheet | |||||
| Total Assets | 718.00M | 602.45M | 430.31M | 440.65M | 411.37M |
| Cash, Cash Equivalents and Short-Term Investments | 21.90M | 18.78M | 18.24M | 21.24M | 14.63M |
| Total Debt | 256.50M | 183.42M | 85.99M | 120.46M | 108.03M |
| Total Liabilities | 408.20M | 332.47M | 184.39M | 214.40M | 203.06M |
| Stockholders Equity | 309.80M | 269.99M | 245.92M | 226.25M | 208.21M |
Cash Flow | |||||
| Free Cash Flow | 89.30M | 78.41M | 68.33M | 56.83M | 31.97M |
| Operating Cash Flow | 95.90M | 84.97M | 75.71M | 64.79M | 38.98M |
| Investing Cash Flow | -113.50M | -115.34M | -19.59M | -37.48M | -24.26M |
| Financing Cash Flow | 20.40M | 30.54M | -58.83M | -17.82M | -19.63M |
Volution Technical Analysis
Positive
682.00
Price Trends
648.14
Positive
637.74
Positive
632.13
Positive
Market Momentum
-2.40
Negative
55.92
Neutral
72.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FAN, the sentiment is Positive. The current price of 682 is above the 20-day moving average (MA) of 641.15, above the 50-day MA of 648.14, and above the 200-day MA of 632.13, indicating a bullish trend. The MACD of -2.40 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FAN.
Volution Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £1.28B | 20.38 | 20.92% | 1.75% | 15.67% | 50.33% | |
72 Outperform | £91.22M | 12.41 | 16.97% | 5.96% | -5.55% | -21.94% | |
65 Neutral | £194.85M | 15.04 | 23.96% | 5.39% | -5.92% | 156.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £655.40M | 18.95 | 5.19% | 4.96% | 4.33% | -30.43% | |
56 Neutral | £9.28M | -257.81 | -0.34% | 0.48% | 15.82% | 98.85% | |
54 Neutral | £268.19M | 876.47 | 0.15% | 3.79% | 6.87% | -91.28% |
* Industrials Sector Average
GB:FAN
Volution
652.00
1.57
0.24%
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255.00
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GB:NXR
Norcros
298.00
18.77
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GB:GEN
Genuit Group
260.00
-94.87
-26.73%
GB:TON
Titon Holdings
82.50
-7.50
-8.33%
GB:SRAD
Stelrad Group Plc
153.00
-8.75
-5.41%
Volution Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Volution lifts profits and margins as acquisitions and overseas growth offset UK slowdown
Positive
Oct 8, 2026
Volution Group reported strong full-year results to 31 July 2026, with revenue up 15.7% to £484.8m, adjusted operating profit up 20.2% and margins expanding to 23.2%. Growth was driven by robust performances in Continental Europe and Australa...
Regulatory Filings and Compliance
Volution Clarifies Total Voting Rights and Share Capital Structure
Neutral
Sep 1, 2026
Volution Group plc has confirmed that its issued share capital stands at 200 million ordinary shares, each carrying one vote, with 1,949,349 of these held in treasury. This leaves a total of 198,050,651 voting rights in the company, providing inve...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Volution buys German ventilation specialist getAir for €40m
Positive
Aug 4, 2026
Volution Group has acquired German-based getAir GmbH, a specialist in decentralised residential heat recovery ventilation systems, for €40 million in a cash- and debt-free deal funded from existing facilities. The business, founded in 2014 a...
Business Operations and StrategyRegulatory Filings and Compliance
Volution Clarifies Share Capital and Voting Rights for Investors
Positive
Aug 3, 2026
Volution Group plc has confirmed that its issued share capital stands at 200 million ordinary shares of 1 pence each, with 1,959,349 of these held in treasury, leaving 198,040,651 shares carrying voting rights. The company highlighted that this fi...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Volution lifts earnings outlook on strong margins and acquisitive growth
Positive
Jul 23, 2026
Volution Group expects adjusted earnings per share of about 38p for the year to 31 July 2026, roughly 4% above market consensus and representing 15% growth, underpinned by total revenue growth of around 15%. The performance reflects resilient 3% o...
Business Operations and StrategyFinancial Disclosures
Volution schedules pre-close trading update for 2026 year-end
Neutral
Jul 20, 2026
Volution Group plc, an international provider of energy efficient indoor air quality solutions, operates a portfolio of 30 brands across the UK, Continental Europe and Australasia. Its products and systems target a wide range of building types, po...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.