Victrex PLC
24 September 2026
24 September 2026
Victrex plc
("Victrex", "Company " or the "Group")
UNLOCKING VICTREX'S POTENTIAL
Summary
Victrex is hosting a Capital Markets Event today. During this event, our senior leadership team will provide an update on the progress we are already making to turn around Victrex, our medium-term transformation strategy and financial framework. We will be providing detail on the following key areas of our value proposition:
· PEEK is a compelling growth market in which Victrex is the global leader
· We have unique and sustainable competitive advantage in PEEK
· We have a clear strategic plan focused on three priorities - Transform, Grow and Optimise - that are driving performance today and positioning us for long-term profitable growth
· Over the next five years, we are targeting:
o Mid single digit organic revenue CAGR
o c.50% gross margin and mid-20s operating margin by FY31 primarily achieved through self help actions
o Over 90% average annual operating cash conversion[1] including maintaining total capex at c.5-8% of annual revenues and strong and improving working capital
o Approximately £250m of cumulative levered free cash flow[2], of which at least 75% will be returned to shareholders under our new disciplined capital allocation policy based on maintaining leverage of <1x net debt / EBITDA
o Includes an ordinary dividend of 30 pence per share in respect of FY26, with a final dividend of 16.58 pence per share
Together, this underpins a compelling proposition to drive sustainable and significant value creation for Victrex shareholders over the medium term.
PEEK is a compelling growth market in which Victrex is the global leader
Victrex invented and is the global market leader in PEEK[3], a semi-crystalline polymer with a unique combination of high mechanical strength, high temperature capability and best-in-class chemical, wear and fatigue resistance. These exceptional performance characteristics provide PEEK with structural competitive advantages in manufacturing the most mission critical and highly certified products across multiple high value industries.
We expect global PEEK volumes to grow at a c.5% CAGR over the next five years, driven by a combination of underlying growth across key end markets (Aerospace & Defence, Automotive, Electronics, Energy & Industrial and Medical) and increasing penetration of PEEK within existing and new applications. We are strongly positioned to capture this growth given our market leading position.
Victrex has unique and sustainable competitive advantages in PEEK
We have strong foundations and sustainable competitive advantages to win in the global PEEK market.
We are the market leader in PEEK with over 45% share by volume, representing more than double the level of our next largest competitor. Our leadership is underpinned by the unique properties of our PEEK offering relative to the market, including higher load bearing capacity, faster processing times and higher durability levels.
Additionally, our vertically integrated and predominantly Western-based manufacturing footprint and deep applications engineering expertise offer security of supply and quality for our longstanding customers in regulated and protected markets. These competitive advantages create high and durable barriers to entry, with c.90% of Group revenue protected from Asian competition that remains largely focused on domestic lower grade opportunities in a market where we continue to grow strongly, with a 17% CAGR in China over the past decade.
Clear strategic plan focused on three core priorities: Transform, Grow and Optimise
Under the leadership of our Chief Executive Officer Dr James Routh, we have established a clear strategic plan to optimise our competitive advantages to enhance performance and deliver sustainable value for shareholders. Our strategic plan is based on relentless execution with three core priorities:
1. Transform: we have established a de-centralised, agile and simplified operating model to drive a customer and performance focused culture throughout the organisation.
2. Grow: we are prioritising nearer term, high value and high margin applications where we have the strongest defensive moat and are strongly positioned to lead the next phase of product development with our customers. We expect these initiatives, alongside the underlying growth across all of our end markets, to drive profitable revenue growth and a higher return on capital.
3. Optimise: we are relentlessly focusing on efficiency and cost structure optimisation to drive a significant increase in our gross and operating margin. This includes process and operating improvements, increasing digitisation and automation, product rationalisation and supply chain optimisation.
Strong financial framework driving sustainable value creation for shareholders
Over the next five years, we expect our strategic plan to deliver profitable growth and cash generation, targeting:
· Mid-single digit organic revenue CAGR
· c.50% gross margin and mid-20s operating margin by FY31
· Over 90% average annual operating cash conversion1, including maintaining total capex at c.5-8% of annual revenues and strong and improving working capital
· Approximately £250m of cumulative levered free cash flow2, with significant growth and cash generation expected thereafter
The delivery of these financial targets will be supported by our new disciplined capital allocation policy, which includes:
· Focused organic growth investment with capex of c.5-8% of annual revenue
· Total cash returns to shareholders of at least 75% of cumulative levered free cash flow from FY27 to FY31
· Includes an ordinary dividend of 30 pence per share in respect of FY26, with a final dividend of 16.58 pence per share
· Intention to grow the ordinary dividend over the period (weighted 1/3 interim and 2/3 final post FY26), with earnings cover of c.2x by FY31
· Remainder of returns to be delivered through share buybacks or special dividends
· Surplus capital will be prioritised in the near-term for additional cash returns to shareholders, with potential bolt-on M&A subject to disciplined criteria and after a sustained recovery in organic performance
This capital allocation policy is based on maintaining a strong balance sheet for the Group, targeting less than 1x net debt / EBITDA leverage ratio over the period.
Dame Vivienne Cox, Chair of Victrex, said:
"On behalf of the Board, we are pleased to be presenting our compelling value proposition to the market today, following a root and branch strategic review that has been led by James and our new executive leadership team.
Victrex is a great company with strong and deep foundations as the pioneer of PEEK. We have high conviction that the delivery of today's plan, primarily through self-help actions in our control, will restore substantial value creation for shareholders over the medium term."
Dr James Routh, Chief Executive Officer of Victrex, said:
"Victrex is a business that has significant growth potential given its unique competitive advantages. Our transformation strategy is designed to fully unlock this potential and deliver sustainable growth in revenue, profitability and cash generation.
We look forward to providing the detail on the building blocks of how we expect to deliver these outcomes, and the progress we are already making, when we meet with analysts and investors this afternoon."
Presentation details
Dr James Routh and members of the executive leadership team will outline further detail at the Capital Markets Event held between 3.00pm-6.00pm UK time at the offices of Investec Bank plc, 30 Gresham Street, London EC2V 7QP. To register to attend please contact InvestorRelations@Victrex.com. For those unable to attend, the presentation will be available at Reports & Presentations - Victrex plc later today.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation. The person responsible for arranging the release of this announcement on behalf of Victrex is Kerry Thornton, Company Secretary.
About Victrex:
Victrex is an innovative world leader in high-performance polymer solutions, focused on the end markets of Aerospace and Defence, Automotive, Electronics, Energy & Industrial and Medical. Every day, millions of people use products and applications which contain our performance materials - from smartphones, aircraft and vehicles to energy production and medical devices. With over 45 years' experience, we develop world leading solutions in PEEK based polymers which shape future performance for our customers and our markets, driving value for our shareholders. Find out more at www.victrexplc.com.
Enquiries:
Victrex plc
CEO
Dr. James Routh, james.routh@victrex.com
Investor Relations
Stephen Lamacraft, stephen.lamacraft@victrex.com, 07776433916
Corporate brokers
Chris Baird, chris.baird@investec.com
Ben Lawrence, ben.lawrence@investec.com
Alia Malik, alia.malik@jpmorgan.com
Charlie Oakes, charles.x.oakes@jpmorgancazenove.com
Forward looking statements:
This announcement has been prepared solely to provide additional information to the shareholders of Victrex plc, to meet the requirements of the FCA's Disclosure and Transparency Rules. It should not be relied on by any other party, for any other purposes. Forward-looking statements have been made by the directors in good faith, using information available up until the date on which they approved this statement. Forward-looking statements should be regarded with caution, because of the inherent uncertainties in economic trends and business risks.
[1] Defined as underlying operating cash flow as a percentage of underlying operating profit. Underlying operating cash flow is underlying operating profit before depreciation, amortisation and profit or loss on disposal, less capital expenditure, adjusted for working capital movements.
[2] Defined as underlying operating cash flow post capex less net interest expense, net income tax expense, lease repayments and exceptional items.
[3] Polyether ether ketone
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