XP Power (LSE:XPP) delivered first-half 2026 results broadly in line with expectations, with a significant increase in order intake providing confidence for the remainder of the year. Orders rose to £167.2 million, resulting in a book-to-bill ratio of 1.53 times, the highest level recorded since early 2022. Revenue remained broadly stable at £109.1 million on a constant currency basis, while adjusted operating profit almost doubled, reflecting stronger margins and disciplined cost management.
Gross margin improved by 450 basis points during the period, helping to strengthen profitability despite relatively flat sales. The company said its restructuring initiatives and tighter control of operating costs contributed to the improved financial performance.
XP Power ended the first half with an order book valued at £173.9 million, including £135 million of firm orders scheduled for delivery during the second half of the year. This provides a solid foundation for stronger revenue generation in the coming months, and management maintained its full-year guidance unchanged.
The company said demand improved across all major regions and end markets, with particularly strong momentum in semiconductor manufacturing equipment and higher-margin technology applications. Recent investments in manufacturing capacity in Vietnam and Malaysia, together with the optimisation of its production footprint, are expected to support future growth as market conditions continue to recover.
XP Power’s investment outlook remains influenced by losses reported over recent years and lower trailing revenue, although improving cash generation and reduced leverage provide encouraging signs. Technical indicators remain supportive, reflecting a strong upward trend in the share price, although overbought conditions could increase the risk of short-term volatility. Valuation continues to be constrained by negative earnings and the absence of a dividend yield.
More about XP Power
XP Power is a FTSE 250-listed designer and manufacturer of power conversion solutions used in a wide range of electronic equipment. Its products convert electricity from the power grid into the regulated power required by industrial, semiconductor and healthcare applications.
Headquartered in Singapore, the company operates manufacturing facilities in Vietnam, Malaysia, North America and Germany, supplying major global original equipment manufacturers. XP Power specialises in serving customers with long product lifecycles, particularly within semiconductor manufacturing, industrial technology and medical equipment markets.
Leave a Reply