XP Power (LSE:XPP) said its trading performance for 2025 was in line with market expectations, supported by a stronger second half that helped offset softer revenues for the year. Full-year order intake rose 24% to £225.9 million, while revenue declined 7% to £229.7 million. The group closed the year with an order book of £116.1 million and a book-to-bill ratio close to one.
Balance sheet metrics improved over the period, with net debt reduced to £41.6 million and leverage at around 1.2 times. This was aided by a significant prepayment received from a key customer, contributing to solid cash generation despite pressure on revenues and profitability.
Strategically, XP Power announced a decision to exit its lower-margin radio frequency (RF) division through an estimated three-year wind-down. The move follows the introduction of new US export controls that restrict RF sales to key Chinese customers. Management said capital and operational focus will instead be redirected toward higher-growth, higher-return areas of the portfolio.
The group has also completed construction of a new manufacturing facility in Malaysia and closed its plant in Kunshan, China. These actions are intended to improve flexibility in serving global customers — particularly in the US — while reshaping the production footprint without adding strain to existing capacity. Further detail on the strategic repositioning is expected alongside full-year results scheduled for 3 March 2026.
From a market perspective, XP Power’s outlook is shaped by a mix of strengths and challenges. Strong cash flow and recent strategic actions provide some support, but declining revenues and profitability continue to weigh on sentiment. Technical indicators point to a bearish trend, while valuation remains constrained by negative earnings, despite optimism around the group’s longer-term strategic direction.
More about XP Power
XP Power is a Singapore-headquartered designer and manufacturer of power controllers used to convert grid electricity into usable power for electronic equipment. The group supplies blue-chip OEM customers across the semiconductor manufacturing equipment, industrial technology and healthcare sectors, typically securing multi-year revenues once its solutions are designed into customer products. XP Power operates manufacturing facilities in Vietnam, North America and Germany, has recently exited China manufacturing, and is listed on the London Stock Exchange as a member of the FTSE SmallCap Index.
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