XP Power to Exit RF Division as 2025 Trading Meets Expectations and Manufacturing Shifts to Malaysia

XP Power ( (GB:XPP) ) has shared an update.

XP Power reported that its 2025 trading performance was in line with market expectations, with full-year order intake rising 24% to £225.9m and a stronger second half helping offset a 7% decline in revenue to £229.7m. The group ended the year with an order book of £116.1m, net debt reduced to £41.6m and leverage at around 1.2 times, supported by a large prepayment from a key customer, while maintaining a book-to-bill ratio close to parity. In a significant strategic shift, the company has decided to exit its lower-margin RF division over an estimated three-year wind-down, following new US export controls that block RF sales to key Chinese customers, and will redirect investment toward higher-growth, higher-return parts of its portfolio. XP Power has also completed construction of a new manufacturing facility in Malaysia and closed its Kunshan, China plant, a move aimed at improving flexibility in serving global, particularly US, markets and reshaping its production footprint without straining existing capacity. The combined actions mark a repositioning of the group’s operations and product mix, with further detail to follow alongside full-year results due on 3 March 2026.

The most recent analyst rating on (GB:XPP) stock is a Hold with a £921.00 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.

XP Power’s overall stock score is primarily impacted by its financial performance, which shows strong cash flow but declining revenues and profitability. Technical analysis suggests a bearish trend, while valuation metrics indicate challenges with negative earnings. Positive corporate events provide some optimism, reflecting confidence in the company’s strategic direction.

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

More about XP Power

XP Power is a Singapore-headquartered designer and manufacturer of power controllers, the critical hardware that converts grid electricity into usable power for electrical equipment. Serving blue-chip OEMs globally, the group focuses on the semiconductor manufacturing equipment, industrial technology and healthcare sectors, where it secures multi-year revenue streams once its power solutions are designed into customers’ products. The company operates manufacturing facilities in Vietnam, North America and Germany, has recently closed a plant in China, and is listed on the London Stock Exchange’s Main Market as a constituent of the FTSE SmallCap Index.

Average Trading Volume: 39,807

Technical Sentiment Signal: Strong Sell

Current Market Cap: £253.5M

See more data about XPP stock on TipRanks’ Stock Analysis page.