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XP Power
(LSE:XPP)
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Rating:55Neutral
Price Target:
1,775.00 p
▲(4.53% Upside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by weak financial performance, especially multi-year net losses and a sharp TTM revenue decline, despite healthier free cash flow and improved leverage. Technicals are mixed with neutral momentum and some near-term softness versus the 50-day average. Valuation is also pressured by negative earnings and no stated dividend yield. Offsetting these is a strong earnings-call backdrop, with robust order momentum, better margins, and reiterated guidance improving near-term visibility.
Positive Factors
Strong free cash flow
Consistent positive free cash flow (TTM ~£32.4m) and recovering operating cash generation provide durable financial flexibility. This supports capex for capacity expansion, deleveraging targets and potential dividend reinstatement even while statutory earnings lag, lowering refinancing risk over the medium term.
Negative Factors
Multi‑year net losses and revenue decline
Sustained statutory losses and a steep multi‑year revenue decline undermine long‑term return generation and equity value. Even with cash flow strengths, persistent negative net margins and sharply lower revenue increase execution risk and require consistent operational recovery to restore ROIC and investor optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent positive free cash flow (TTM ~£32.4m) and recovering operating cash generation provide durable financial flexibility. This supports capex for capacity expansion, deleveraging targets and potential dividend reinstatement even while statutory earnings lag, lowering refinancing risk over the medium term.
Read all positive factors
XP Power (XPP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£485.72M
Dividend YieldN/A
Average Volume (3M)63.10K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-1.21%
EPS Growth46.27%
CountryUK
Employees2,249
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.31
Shares Outstanding28,032,179
10 Day Avg. Volume91,192
30 Day Avg. Volume63,098
Financial Highlights & Ratios
PEG Ratio-4.29
Price to Book (P/B)1.42
Price to Sales (P/S)1.06
P/FCF Ratio7.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,635.00Price Target Upside-3.71% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.48
Revenue Forecast (FY)£242.85M
XP Power Business Overview & Revenue Model
Company Description
XP Power Limited, an investment holding company, designs, manufactures, and sells power supply solutions in Europe, North America, and Asia. It offers AC-DC power supplies, DC-DC converters, high voltage AC-DC power supplies, RF power systems, and...
How the Company Makes Money
XP Power makes money primarily by selling power conversion products and related power control solutions to OEM customers. Its core revenue streams include (1) Standard/catal og product sales: off-the-shelf AC-DC power supplies and DC-DC converters...
XP Power Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call conveyed strong operational and commercial momentum: exceptional order intake (up 55%) across all regions and sectors, significant margin expansion (gross margin +450bps) and a return to adjusted profitability and positive EPS. The completed Malaysia facility, targeted capacity increases and a strengthened order book provide clear visibility into H2 and support management's unchanged full‑year guidance. Key near‑term risks are manageable: the headwind from U.S.‑China export license expiries and the deliberate exit from the Chinese RF market reduced Asia revenue, working capital was intentionally increased (inventory +29%) which lowered cash conversion in the half, and supply‑chain/qualification timing could affect conversion of the strong order book. Overall, positives materially outweigh the negatives, with the business positioned for continued revenue and margin expansion if capacity ramps and supply constraints are managed.Positive Updates
Record Order Intake and Momentum
Order intake reached GBP 167.2m, up ~55% year‑on‑year (48% sequentially in constant currency). Momentum built through the half with Q2 stronger than Q1 and broad‑based growth across all sectors and regions.
Negative Updates
China RF Export License Expiry and Market Exit
Expiry of some U.S.‑China export licences and a decision to exit the Chinese RF market reduced revenue and contributed to weaker Asia revenue (Asia revenue down ~11% in constant currency). Closure of the China factory and exit decisions generated adjusting charges.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Intake and Momentum
Order intake reached GBP 167.2m, up ~55% year‑on‑year (48% sequentially in constant currency). Momentum built through the half with Q2 stronger than Q1 and broad‑based growth across all sectors and regions.
Read all positive updates
Company Guidance
The company reiterated unchanged full‑year expectations, saying the H1 order book (GBP174.0m, +GBP58m) supports at least GBP135m revenue in H2 and at least GBP244m for FY2026 (tariffs may affect revenue but not profit); total capital spend including capitalised R&D is guided at GBP25–30m, with a full‑year effective tax rate of 20–25% and leverage expected to be approaching ~1x by year‑end (H1 net debt GBP47.7m, leverage 1.3x, net debt +GBP6.2m in H1), after which management intends to keep leverage 0–1x through the cycle and consider reinstating dividends and other returns; through‑cycle targets remain organic growth ~10%, adjusted operating margin ~20%, operating cash conversion ~85% of EBITDA (new definition; H1 was 52%), return on capital 20%; operational guidance includes Malaysia full production in Q4, ~75% increase in Asian line capacity vs H1, and continued inventory and capacity investment (H1 inventory +29% to GBP73.8m; H1 net capex GBP10.1m; Malaysia build GBP20m), while H1 trading metrics (order intake GBP167.2m, +55% y/y; semi orders +116% with sector book‑to‑bill 1.81; group book‑to‑bill 1.53; revenue H1 GBP109.1m, +2% cc; adjusted gross margin 45.9% (+450bps); adjusted operating profit GBP8.6m, +23% cc; adjusted operating margin 7.9% (+360bps); adjusted diluted EPS 14.2p) underpin the guidance.XP Power Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
50
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 228.30M | 230.10M | 247.30M | 316.40M | 290.40M | 240.30M |
| Gross Profit | 100.20M | 96.30M | 97.00M | 131.30M | 120.60M | 108.30M |
| EBITDA | 23.20M | 19.50M | 24.00M | 32.80M | -7.10M | 42.90M |
| Net Income | -8.50M | -11.40M | -9.60M | -9.20M | -20.00M | 22.60M |
Balance Sheet | ||||||
| Total Assets | 426.40M | 423.70M | 416.20M | 446.30M | 481.70M | 272.20M |
| Cash, Cash Equivalents and Short-Term Investments | 14.80M | 33.80M | 13.90M | 12.00M | 22.30M | 9.00M |
| Total Debt | 117.00M | 128.40M | 163.20M | 180.80M | 225.70M | 41.70M |
| Total Liabilities | 250.00M | 251.10M | 270.30M | 291.00M | 342.20M | 99.80M |
| Stockholders Equity | 175.80M | 172.10M | 145.30M | 154.60M | 138.60M | 171.50M |
Cash Flow | ||||||
| Free Cash Flow | 25.70M | 32.40M | 35.30M | 17.40M | -26.90M | 13.60M |
| Operating Cash Flow | 37.00M | 38.00M | 55.40M | 57.50M | -7.50M | 35.50M |
| Investing Cash Flow | -20.90M | -26.90M | -20.00M | -39.90M | -89.30M | -21.90M |
| Financing Cash Flow | -17.50M | 10.20M | -33.50M | -27.00M | 103.30M | -18.70M |
XP Power Technical Analysis
Neutral
1698.00
Price Trends
1810.28
Negative
1717.12
Positive
1409.86
Positive
Market Momentum
-9.13
Negative
48.45
Neutral
59.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XPP, the sentiment is Neutral. The current price of 1698 is below the 20-day moving average (MA) of 1721.90, below the 50-day MA of 1810.28, and above the 200-day MA of 1409.86, indicating a neutral trend. The MACD of -9.13 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:XPP.
XP Power Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £289.12M | 11.76 | 13.58% | 2.73% | -2.13% | 3.94% | |
68 Neutral | £1.02B | 21.41 | 15.29% | 0.86% | 8.85% | 29.67% | |
67 Neutral | £206.34M | -17.16 | -33.79% | ― | -13.43% | ― | |
65 Neutral | £365.27M | 18.08 | 20.71% | 2.39% | 11.92% | 41.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | £485.72M | -55.44 | -4.89% | ― | -1.21% | 46.27% |
* Industrials Sector Average
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XP Power Corporate Events
Business Operations and StrategyFinancial Disclosures
XP Power H1 orders surge as market recovery boosts margins and outlook
Positive
Aug 4, 2026
XP Power reported interim results for the first half of 2026 broadly in line with expectations, highlighting strong order intake of £167.2m and a book-to-bill ratio of 1.53x, the highest since early 2022. Revenue was stable at £109.1m in...
Business Operations and StrategyFinancial Disclosures
XP Power rides order surge as H1 margins rebound and growth shifts to Asia plants
Positive
Aug 4, 2026
XP Power reported interim results showing H1 2026 performance broadly in line with expectations, with revenue slightly higher in constant currency and a sharp rebound in profitability as adjusted operating profit rose to £8.6m and gross margi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.