Q3 Trading Update
Q3 order intake rose 18% in constant currency; full year profit expected in line with market expectations.
vs expectations: in line
- Q3 Order intake £55.3m (prior £48.8m)
- Q3 Revenue £57.6m (prior £60.2m)
- Book-to-bill ratio 0.96x (prior 0.81x)
- Order book £119.4m
- Net debt £60.7m (prior £57.9m)
- Leverage 1.7x (prior 1.8x)
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Trading in line with full year expectations
Improved trading and efficiency actions driving healthy sequential progress in H2
XP Power, one of the world's leading developers and manufacturers of critical power control solutions to the Semiconductor Manufacturing Equipment, Healthcare and Industrial Technology sectors, is today issuing a trading update for the third quarter ended 30 September 2025.
Trading
| Q3 2025 | Q3 2024 | Change | Change in constant currency | |
|---|---|---|---|---|
| Order intake (£m) | 55.3 | 48.8 | 13% | 18% |
| Revenue (£m) | 57.6 | 60.2 | (4)% | - |
| Book-to-bill | 0.96x | 0.81x | 0.15x | |
| Quarterly performance | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
| Order intake (£m) | 44.9 | 57.4 | 55.3 | 55.3 |
| % change vs prior year - constant currency | (2)% | 30% | 32% | 18% |
| Revenue (£m) | 60.0 | 53.8 | 57.1 | 57.6 |
| % change vs prior year - constant currency | (22)% | (18)% | (4)% | - |
| Book-to-bill | 0.75x | 1.07x | 0.97x | 0.96x |
Q3 order intake was £55.3m. This is 2% higher than the preceding quarter and 18% higher than the comparative period in constant currency. Progress versus the comparative period was strongest within the Industrial Technology and Healthcare sectors due to slower customer destocking.
Q3 revenue was £57.6m. This is 3% higher than the preceding quarter and in line with the comparative period in constant currency. Growth versus the preceding quarter was driven by the Industrial Technology and Healthcare sectors, with increasing order intake translating into increasing revenue.
The order book at the end of the quarter was £119.4m.
Quarterly operating profit increased materially from Q2 to Q3 2025, as revenue growth and efficiency actions delivered the expected benefits. We expect this to be sustained in Q4, leading to full year profit in line with current market expectations*.
Financial Position
Net debt as of 30 September 2025 was £60.7m, £2.8m higher than at 30 June 2025 due to currency movements and the planned increase in capital expenditure on our new Malaysia production facility as construction nears completion. Leverage reduced by 0.1x in the quarter to 1.7x due to the improvement in profit. We expect net debt to reduce by year-end in constant currency.
Comet Legal Action
Our appeal in respect of the Comet legal action was heard on 19 September 2025 in the US Court of Appeals for the Ninth Circuit. The panel of three appellate judges will now consider their verdict.
Outlook
Our full year outlook is in line with current market expectations. We have seen a material step up in profitability in Q3, compared to H1 or Q2 2025, and we expect this to be sustained through the year-end. These run rates provide increasing confidence going into 2026 in what we expect to remain cautious end-markets.
Investor seminar
As previously announced, the Group will host an institutional investor seminar on 5 November 2025 covering why we win, our market position, technology, operations and sustainability. If you would like to attend, please contact investor.relations@xppower.com.
* Company compiled analyst consensus as of 21 October 2025 is for 2025 Adjusted Operating Profit of £17.4m (range of £16.3m to £18.2m).
XP Power designs power control solutions into the end products of major blue-chip OEMs, with a focus on the Semiconductor Manufacturing Equipment (c.39% of sales in H1 2025), Industrial Technology (c.38% of sales in H1 2025) and Healthcare (c.22% sales in H1 2025) sectors. Once designed into a programme, XP Power has a revenue annuity over the life cycle of the customer's product which is typically five to seven years depending on the industry sector. XP Power has invested in research and development and its own manufacturing facilities in Vietnam, China, North America and Germany, to develop a range of tailored products based on its own intellectual property that provide its customers with significantly improved functionality and efficiency.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.