Singapore's XP Power slightly beats 2025 revenue expectations as orders improved

XP Power

03/03/2026 07:14

Overview

Singapore power solutions developer's 2025 revenue slightly beat analyst expectations despite a 7% decline

Adjusted gross margin for 2025 expanded by 170 bps

Company reduced net debt by £52 mln and completed Malaysia plant construction

Outlook

XP Power expects improved financial performance as 2026 progresses

Company anticipates reduced sales to China due to US export restrictions

XP Power sees growing signs of market recovery in 2026

Result Drivers

DESTOCKING IMPACT - Revenue decline in 2025 was due to customer destocking, particularly in the first half, with a recovery in the second half as destocking eased

GROSS MARGIN IMPROVEMENT - Adjusted gross margin expanded by 170 bps due to cost control and efficiency improvements

DEBT REDUCTION - Net debt reduced by £52 mln due to strong operating cash conversion and share placing

Company press release: ID:nRSC0199Va

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
GBP 230.10 mln
GBP 228.05 mln (6 Analysts)
FY Gross Margin
42.70%
FY Orders
GBP 225.90 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for XP Power Ltd is GBp1,200.00, about 13.2% below its March 2 closing price of GBp1,382.00

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)