Q3 Trading Update

FY26 expectations unchanged with FY27 slightly ahead of market expectations

XP Power Limited ("XP Power", "the Group" or "the Company"), 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 third quarter ended 30 September 2026.

Trading

Q3 order intake was £106.8m, 22% higher than the preceding quarter and 93% higher than the comparative period in constant currency. Order intake was broad-based by sector and region, led by Semiconductor Manufacturing Equipment and Industrial Technology. Q3 order intake benefited from customers placing orders earlier than usual in response to extending industry lead times, with underlying customer demand estimated to be similar to Q2. Book-to-bill was 1.67x.

Q3 revenue was £63.8m and in line with our expectations. Revenue was 12% higher than the preceding quarter and 10% up on the comparative period in constant currency. Reported revenue included a £3.7m reduction relating to a one-off US tariff refund. Excluding this item, Q3 revenue was £67.5m, consistent with the £135m revenue guidance for H2. The sequential improvement reflected higher output from our manufacturing facility in Vietnam, where Q3 shipments were 70% higher than Q2.

Our order book at the end of the quarter was £216.9m.

Financial Position

Net debt at 30 September 2026 was £4.5m (30 June 2026: £47.7m), in line with our expectations. The significant reduction in the quarter reflected £50.2m of cash received following the release of the Comet litigation bond, combined with continued disciplined investment in firm order growth. The Group expects to generate net cash in Q4. Leverage at the end of the quarter was 0.1x.

The Group will continue to defend its position in the Comet litigation case and will provide further updates as appropriate.

Outlook

We are encouraged by the Q3 order intake and the consequent improvement in visibility. While some customers placed orders earlier than usual, underlying demand remained strong and is estimated to be similar to Q2. We remain mindful of macroeconomic and geopolitical conditions that could affect supply chains and future demand, although we have not seen any impact to date.

Our FY26 expectations remain unchanged, including the delivery of a significantly stronger performance in H2 than H1. Revenue is expected to increase further in Q4 as the order book converts, supported by continued improvements in manufacturing output.

The improving revenue momentum and order book visibility increase our confidence for FY27. We expect a combination of revenue growth and associated operational leverage to deliver a FY27 performance slightly ahead of current market expectations1.

The Group's strong market position, broad-based demand and improving operational performance give the Board confidence in the Company's long-term prospects.

The Group will publish its 2026 full year results on 2 March 2027.

Company compiled analyst consensus as of 19 October 2026 is as follows:

FY26: Adjusted Operating Profit of £26.4m (range of £23.8m to £28.8m) and Adjusted EPS of 48.5p (37.5p to 56.7p)

1FY27: Adjusted Operating Profit of £35.9m (range of £31.9m to £41.3m) and Adjusted EPS of 75.4p (range of 63.9p to 92.7p).

XP Power designs power control solutions into the end products of major blue-chip OEMs, with a focus on the Semiconductor Manufacturing Equipment (c.40% of sales in H1 2026), Industrial Technology (c.41% of sales in H1 2026) and Healthcare (c.19% of sales in H1 2026) 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, Malaysia, 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.

Headquartered in Singapore and listed on the Main Market of the London Stock Exchange since 2000, XP Power is a constituent of the FTSE 250 Index. XP Power serves a global blue-chip customer base from over 30 locations in Europe, North America, and Asia.