XP Power Ltd (LSE:XPP) reported Tuesday an EBITA of £4.8 million for the first half of 2025, missing analyst forecasts by 42%, largely due to a £2.3 million foreign exchange headwind.
Revenue declined 11% year-over-year on a constant currency basis, totaling £111 million, and was down 13% on a reported basis.
Despite the headwinds, the company’s book-to-bill ratio improved to 1.02x for the period, up from 0.7x in the first half of 2024.
Order intake rose 28% year-over-year to £113 million across all sectors. By segment, semiconductors posted a book-to-bill of 0.88x, industrial technology led with 1.20x, and healthcare came in at 0.94x.
Adjusted earnings per share fell sharply to 0.4p, a 98% drop compared to last year. Net debt was reduced by 44% to £57.9 million, aided by a share placement, with the net debt to EBITDA ratio at 1.8x.
On a brighter note, gross margin improved by 80 basis points year-on-year despite revenue pressures. The company also announced new cost-saving measures expected to deliver £5.5 million in savings in the second half of 2025.
Management expects “healthy sequential progress” during the second half, highlighting early signs of improvement in key markets.
However, they cautioned that full-year results will depend on the strength of the fourth-quarter order book, with a “range of outcomes” possible.
Shares of XP Power are currently priced at 851.00p. Jefferies analysts maintain a hold rating and set a price target of 900.00p, implying about 6% upside.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply