XP Power (LSE:XPP) reported a notable improvement in profitability during the third quarter, according to its trading update released on Tuesday.
Revenue for the quarter came in at £57.6 million, flat year over year on a constant currency basis but up 3% sequentially. This marks a clear turnaround from the first half of 2025, when organic revenue fell 11% compared to the prior year.
Order intake totaled £55.3 million, reflecting an 18% increase year over year at constant exchange rates and a 2% rise quarter over quarter. The recovery was fueled by stronger demand in the Industrial Technology and Healthcare segments as customer destocking began to ease. The order book ended the quarter at £119.4 million, down 15% year on year, with a book-to-bill ratio of 0.96x, compared to 1.02x in H1 2025.
Net debt rose by £2.8 million from the first half, reaching £60.7 million, largely due to currency fluctuations and planned capital investments in the company’s new Malaysian production facility. However, leverage improved slightly to 1.7x from 1.8x in the first half.
The company also provided an update on its ongoing legal proceedings, noting that the appeal in the Comet case was heard on September 19, 2025, by the Ninth Circuit of the U.S. Court of Appeals, with the ruling currently under consideration.
XP Power reaffirmed that its full-year guidance remains aligned with market expectations, which project FY25 EBITA of £17.4 million. It expects the “material” increase in Q3 EBITA compared with the first half to carry through the rest of the year.
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