Full Year Trading Update
Full year 2025 revenue down 7% to £229.7m; order intake up 24% to £225.9m; exiting RF market over three years.
vs expectations: in line
- Full year revenue £229.7m (prior £247.3m)
- Full year order intake £225.9m (prior £181.6m)
- Book-to-bill ratio 0.98x (prior 0.73x)
- Net debt £41.6m (prior £60.7m)
- Leverage c.1.2x
- RF Division revenue £24.3m
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Malaysia factory complete and China factory closed
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 fourth quarter and full year ended 31 December 2025.
Trading
| 2025 | 2024 | Change | Change in constant currency | ||
|---|---|---|---|---|---|
| Q4: | |||||
| Order intake (£m) | 57.9 | 44.9 | 29% | 32% | |
| Revenue (£m) | 61.2 | 60.0 | 2% | 5% | |
| Book-to-bill | 0.95x | 0.75x | 0.20x | ||
| Full Year: | |||||
| Order intake (£m) | 225.9 | 181.6 | 24% | 28% | |
| Revenue (£m) | 229.7 | 247.3 | (7)% | (4)% | |
| Book-to-bill | 0.98x | 0.73x | 0.25x | ||
| Quarterly performance | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | FY 2025 |
| Order intake (£m) | 57.4 | 55.3 | 55.3 | 57.9 | 225.9 |
| % change vs prior year - constant currency | 30% | 32% | 18% | 32% | 28% |
| Revenue (£m) | 53.8 | 57.1 | 57.6 | 61.2 | 229.7 |
| % change vs prior year - constant currency | (18)% | (4)% | - | 5% | (4)% |
| Book-to-bill | 1.07x | 0.97x | 0.96x | 0.95x | 0.98x |
The order book at the end of the quarter was £116.1m.
Subject to audit, the Board expects full year profit and EPS to be in line with current market expectations* following the delivery of a significantly improved second half performance.
Exit from RF market
In late 2025, the Board decided to exit the RF market. The RF Division has historically delivered gross margins and overall returns materially lower than the Group average. Furthermore, as previously announced, US export controls introduced in late 2024 prevent us from selling RF products to key customers in China after 2025, limiting future prospects.
This exit decision will allow the Group to maximise investment and returns from other parts of the product portfolio, which have a far stronger market position and greater long-term growth prospects.
The exit will be a managed wind down over the next approximately three years in order to support our key customers, many of whom buy a range of XP products, through an orderly supply chain transition for this technical product. Final delivery requirements have been agreed and are accompanied by a pre-payment of £16.4m toward planned 2026 deliveries received from a key customer in December 2025.
In 2025, the RF Division generated revenue of £24.3m and was close to break-even including the benefit of high final deliveries to Chinese customers. Annual revenue is expected to be similar during the wind down period.
Manufacturing facility update
Construction of our new manufacturing facility in Malaysia is now complete and it is expected to be operational during 2026.
Completion of construction in Malaysia allowed us to close our existing facility in Kunshan, China in December 2025. Malaysia brings greater flexibility to serve global markets, particularly the US.
We have adequate spare manufacturing capacity elsewhere in the network to manage the transition between China and Malaysia.
The Group will provide more detail on the RF market exit and China factory closure with the full year results.
Financial Position
Net debt as at 31 December 2025 was £41.6m, £19.1m lower than as at 30 September 2025 including the pre-payment of £16.4m for RF deliveries referenced above. Leverage ended the year at c.1.2x.
The Group will publish its 2025 full year results on the 3 March 2026.
* Company compiled analyst consensus as of 19 January 2026 is for 2025 Adjusted Operating Profit of £17.3m (range of £16.3m to £18.2m) and 2025 Adjusted EPS of 21.4p (range of 16.6p to 24.4p)
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.
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