Q1 Trading Update

Strong order intake

Full Year expectations unchanged

XP Power Limited ("XP Power" or "the Group"), one of the world's leading developers and manufacturers of critical power control solutions for the Semiconductor Manufacturing Equipment, Healthcare and Industrial Technology sectors, is today issuing a trading update for the first quarter ended 31 March 2026.

Trading

Q1 order intake was £79.1m, 38% higher than preceding quarter and 48% higher than the comparative period in constant currency. Order intake improved across all three sectors and all regions, with particularly strong demand from the Semiconductor Manufacturing Equipment sector and continued progress in the Industrial Technology and Healthcare sectors. Book-to-bill was 1.53x.

Q1 revenue was £51.8m and in line with our expectation. Revenue was 16% lower than the preceding quarter but 3% higher than the comparative period in constant currency. The sequential reduction was due to normal seasonal patterns, the end of some US export licences for Semiconductor Manufacturing Equipment customers in China as previously highlighted, as well as the planned transfer of production from our now closed China site to Vietnam, which caused a temporary slowdown in deliveries. We would expect revenue to increase in Q2.

Our order book at the end of the quarter was £143.1m.

Financial Position

Net debt as of 31 March 2026 was £41.8m, similar to the 2025 year end. Leverage ended the quarter at 1.2x. Net debt is expected to increase modestly in Q2 due to final payments for building work at the Malaysia site and investment in inventory to support the delivery of increased orders.

Outlook

We are encouraged by the material increase in order intake at the start of the year which has significantly improved visibility for 2026. We expect quarterly order intake to remain above 2025 run rates but may not reach the highs of Q1 2026. We also remain mindful of macroeconomic and geopolitical conditions that could impact supply chains and future demand although at the current time we have not seen this.

Our full year expectations are unchanged, including for a second half weighting.

The Group's strong market position, exciting product pipeline and portfolio, robust operational performance and proven business model gives the Board confidence in our long-term prospects and the strategic value of the Company.

The Group will publish its 2026 interim results on 4 August 2026.

XP Power designs and manufactures power controllers, essential hardware components in all electrical equipment that converts power from the electricity grid into the correct form for equipment to function. Power controllers are critical for optimal delivery in challenging environments but are a small part of the overall customer product cost.

XP Power designs power control solutions into the end products of major blue-chip OEMs, with a focus on the Semiconductor Manufacturing Equipment (circa 37% of sales), Industrial Technology (circa 38% of sales) and Healthcare (circa 25% sales) 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, 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.