XP Power lifts orders and margins as destocking eases and restructuring cuts debt

XP Power ( (GB:XPP) ) just unveiled an announcement.

XP Power reported a 28% constant‑currency increase in order intake to £225.9m for 2025, driven by easing customer destocking in industrial technology and healthcare and a gradual improvement in semiconductor equipment demand. Group revenue fell 4% in constant currency to £230.1m, with the decline concentrated in the first half, while the second half delivered 7% sequential growth as markets stabilised.

Adjusted operating profit dropped 20% in constant currency to £17.3m as lower volumes weighed on earnings, but cost actions and margin initiatives lifted adjusted gross margin by 170 basis points and saw operating profit rebound from £4.8m in the first half to £12.5m in the second. Net debt was cut to £41.5m, halving leverage to 1.2 times adjusted EBITDA after strong cash generation and a share placing, as the company streamlined operations, completed a new plant in Malaysia, exited the RF market and signalled that improved demand should offset U.S. export restrictions to China over the course of 2026.

Management highlighted 24 new product launches, better supply chain efficiency and higher customer satisfaction as key structural gains that leave XP Power well positioned for an expected market recovery. The shift of manufacturing from China to Malaysia, alongside tighter inventory management and disciplined cost control, is designed to underpin mid‑40s gross margins once end‑markets normalize and to reinforce the group’s competitive position in its core sectors.

The most recent analyst rating on (GB:XPP) stock is a Hold with a £1250.00 price target. To see the full list of analyst forecasts on XP Power stock, see the GB:XPP Stock Forecast page.

Spark’s Take on GB:XPP Stock

According to Spark, TipRanks’ AI Analyst, GB:XPP is a Neutral.

Overall score is driven mainly by mixed financial performance: strong cash generation and decent gross margin are outweighed by declining revenue, ongoing losses, and higher leverage. Technicals are supportive of an uptrend but look overbought, while valuation is penalized due to negative earnings (negative P/E) and no dividend yield data.

To see Spark’s full report on GB:XPP stock, click here.

More about XP Power

XP Power is a Singapore‑headquartered developer and manufacturer of power controllers used in semiconductor manufacturing equipment, industrial technology and healthcare devices. The group designs power control solutions into blue‑chip OEM products, generating multi‑year revenue streams, and operates manufacturing facilities in Vietnam, North America and Germany while serving customers across Europe, North America and Asia.

Listed on the London Stock Exchange’s Main Market as a FTSE SmallCap constituent, the company focuses on providing tailored, IP‑rich power solutions that convert grid electricity into the precise form required for complex end‑equipment. Its products are typically a small proportion of customers’ total system cost but are critical to reliability and performance in demanding operating environments.

XP Power also maintains a substantial global sales and support footprint with more than 20 locations worldwide. This network underpins its strategy of close integration with customers’ design cycles and supports long‑term partnerships in its core end markets of semiconductor tools, industrial systems and medical technology.

Average Trading Volume: 66,995

Technical Sentiment Signal: Hold

Current Market Cap: £388.2M

See more insights into XPP stock on TipRanks’ Stock Analysis page.