XP Power reports full-year results in line with expectations
By Josh White
Date: Tuesday 03 Mar 2026
(Sharecast News) - XP Power reported full-year results in line with expectations for 2025 on Tuesday, with lower revenues and profits reflecting peak customer destocking, but said structural improvements and signs of a market recovery left it well positioned for 2026.
Order intake rose 24% to £225.9m, up 28% in constant currency, driven by strong growth in industrial technology and healthcare as customer destocking eased, alongside a gradual improvement in semiconductor manufacturing equipment through the year.
Revenue fell 7% to £230.1m, or 4% in constant currency, with all of the decline occurring in the first half as destocking peaked.
The firm said Revenue grew 7% from the first to the second half, supported by healthy new business wins and maintained market share.
Its book-to-bill ratio improved to 0.98x from 0.73x, while the order book stood at £115.8m compared with £122.3m a year earlier.
Adjusted operating profit declined 31% to £17.3m, down 20% in constant currency, reflecting lower revenues but partially offset by management actions.
Profit improved significantly in the second half to £12.5m from £4.8m in the first half.
Adjusted gross margin expanded by 170 basis points to 42.7%, with the margin reaching 43.9% in the second half.
The company said it remained confident of achieving a mid-40s gross margin as end markets recovered, adding that US tariff-related cost increases were either mitigated or passed through.
Adjusted profit before tax fell 31% to £9.5m, while diluted adjusted earnings per share declined 48% to 22.5p.
On a reported basis, operating profit was £0.7m compared with £3.6m in 2024, and the group posted a pre-tax loss of £7.3m, narrowed from a £7.7m loss a year earlier.
Diluted losses per share were 42p, and operating cash flow fell to £38.9m from £65.6m.
Net debt reduced by £52.0m during the year to £41.5m, following strong operating cash conversion and a March 2025 share placing.
The company said net debt-to-last 12 months adjusted EBITDA improved to 1.2x from 2.3x.
Operationally, the group maintained cost discipline, reduced and optimised inventory, launched 24 new products and completed construction of its Malaysia plant, enabling the closure of its China facility.
It also decided to exit the RF market to focus on more attractive product categories.
"While 2025 brought slower market conditions in which customer destocking reached a peak leading to lower profits, I am encouraged by the underlying progress we have made," said chief executive Gavin Griggs.
"We remained focused on delivering against our strategy, demonstrated by increased new business wins, strategic portfolio decisions, improved gross margins, disciplined cost control and further progress in sustainability.
"We took decisive action to improve our profitability in the second half of the year and we have made some important structural changes to ensure that the business has the right foundations for long-term growth.
"There are growing signs of a market recovery, with financial performance expected to build as 2026 progresses.
"I am confident that our innovative product offering, ability to deliver complex solutions at speed and improved supply chain efficiency will enable us to capitalise as conditions improve."
For 2026, XP Power said the actions taken in 2025 created an improved financial performance baseline.
While previously-announced US export restrictions were expected to reduce sales to China, the group anticipates improved market demand will drive stronger financial performance as the year progressed.
At 1130 GMT, shares in XP Power were down 3.86% at 1,328.68p.
Reporting by Josh White for Sharecast.com.
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