REG - XP Power Ltd - Full Year Trading Update

XP PowerAnnouncement

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RNS Number : 3143P  XP Power Limited  19 January 2026

19 January 2026

 

 

XP Power Limited

('XP Power' or 'the Group')

 

Full Year Trading Update

 

2025 performance in line with expectations

Managed exit from RF market

Malaysia factory complete and China factory closed

 

XP Power, one of the world's leading developers and manufacturers of critical
power control solutions to the Semiconductor Manufacturing Equipment,
Healthcare and Industrial Technology sectors, is today issuing a trading
update for the fourth quarter and full year ended 31 December 2025.

 

Trading

 

                     2025   2024   Change  Change in constant currency

 Q4:
 Order intake (£m)   57.9   44.9   29%     32%
 Revenue (£m)        61.2   60.0   2%      5%
 Book-to-bill        0.95x  0.75x  0.20x

 Full Year:
 Order intake (£m)   225.9  181.6  24%     28%
 Revenue (£m)        229.7  247.3  (7)%    (4)%
 Book-to-bill        0.98x  0.73x  0.25x

 

 

                                             Q1     Q2     Q3     Q4     FY

 Quarterly performance                       2025   2025   2025   2025   2025

 Order intake (£m)                           57.4   55.3   55.3   57.9   225.9
 % change vs prior year - constant currency  30%    32%    18%    32%    28%

 Revenue (£m)                                53.8   57.1   57.6   61.2   229.7
 % change vs prior year - constant currency  (18)%  (4)%   -      5%     (4)%

 Book-to-bill                                1.07x  0.97x  0.96x  0.95x  0.98x

The order book at the end of the quarter was £116.1m.

 

Subject to audit, the Board expects full year profit and EPS to be in line
with current market expectations* following the delivery of a significantly
improved second half performance.

 

 

Exit from RF market

 

In late 2025, the Board decided to exit the RF market. The RF Division has
historically delivered gross margins and overall returns materially lower than
the Group average. Furthermore, as previously announced, US export controls
introduced in late 2024 prevent us from selling RF products to key customers
in China after 2025, limiting future prospects.

 

This exit decision will allow the Group to maximise investment and returns
from other parts of the product portfolio, which have a far stronger market
position and greater long-term growth prospects.

 

The exit will be a managed wind down over the next approximately three years
in order to support our key customers, many of whom buy a range of XP
products, through an orderly supply chain transition for this technical
product. Final delivery requirements have been agreed and are accompanied by a
pre-payment of £16.4m toward planned 2026 deliveries received from a key
customer in December 2025.

 

In 2025, the RF Division generated revenue of £24.3m and was close to
break-even including the benefit of high final deliveries to Chinese
customers. Annual revenue is expected to be similar during the wind down
period.

 

Manufacturing facility update

 

Construction of our new manufacturing facility in Malaysia is now complete and
it is expected to be operational during 2026.

 

Completion of construction in Malaysia allowed us to close our existing
facility in Kunshan, China in December 2025. Malaysia brings greater
flexibility to serve global markets, particularly the US.

 

We have adequate spare manufacturing capacity elsewhere in the network to
manage the transition between China and Malaysia.

 

The Group will provide more detail on the RF market exit and China factory
closure with the full year results.

 

Financial Position

 

Net debt as at 31 December 2025 was £41.6m, £19.1m lower than as at 30
September 2025 including the pre-payment of £16.4m for RF deliveries
referenced above. Leverage ended the year at c.1.2x.

 

The Group will publish its 2025 full year results on the 3 March 2026.

 

 

Enquiries:

 

XP Power

Gavin Griggs, Chief Executive
Officer
+44 (0)118 984 5515

Matt Webb, Chief Financial Officer

 

CDR

Claire De
Groot
+44 (0)207 638 9571

 

* Company compiled analyst consensus as of 19 January 2026 is for 2025
Adjusted Operating Profit of £17.3m (range of £16.3m to £18.2m) and 2025
Adjusted EPS of 21.4p (range of 16.6p to 24.4p)

 

XP Power designs and manufactures power controllers, the essential hardware
component in every piece of electrical equipment that converts power from the
electricity grid into the right form for equipment to function. Power
controllers are critical for optimal delivery in challenging environments but
are a small part of the overall customer product cost.

 

XP Power designs power control solutions into the end products of major
blue-chip OEMs, with a focus on the Semiconductor Manufacturing Equipment
(c.39% of sales in H1 2025), Industrial Technology (c.38% of sales in H1 2025)
and Healthcare (c.22% sales in H1 2025) sectors. Once designed into a
programme, XP Power has a revenue annuity over the life cycle of the
customer's product which is typically five to seven years depending on the
industry sector. XP Power has invested in research and development and its own
manufacturing facilities in Vietnam, China, North America and Germany, to
develop a range of tailored products based on its own intellectual property
that provide its customers with significantly improved functionality and
efficiency.

 

Headquartered in Singapore and listed on the Main Market of the London Stock
Exchange since 2000, XP Power is a constituent of the FTSE SmallCap Index. XP
Power serves a global blue-chip customer base from over 30 locations in
Europe, North America, and Asia.

 

For further information, please visit www.xppowerplc.com
(http://www.xppowerplc.com)

 

Forward-looking statements

 

This announcement contains forward‑looking statements that are subject to
risk factors associated with, among other things, the economic and business
circumstances occurring from time to time in the countries, sectors and
markets in which the Group operates. It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated. No assurances can be given that the
forward‑looking statements in this announcement will be realised.

 

The forward‑looking statements reflect the knowledge and information
available to management at the date of preparation of this announcement. XP
Power and its Directors accept no responsibility to third parties and
undertake no obligation to update these forward‑looking statements. Nothing
in this announcement should be construed as a profit forecast.

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