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XP Power (XPP) investor relations material
XP Power H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Order intake rose 31% year-over-year and 19% sequentially, with book-to-bill above 1 for the first time since H2 2022, signaling recovery in challenging conditions across all sectors.
Revenue declined 11–13% year-over-year in constant currency, mainly due to customer destocking and China Semi exit, but improved sequentially from Q1 to Q2.
Adjusted gross margin improved by 80bps to 41.4%, driven by cost reduction, supply chain efficiency, and manufacturing savings.
Inventory reduced by 16%, supporting strong cash conversion and positioning for market recovery.
Efficiency actions and new product launches, including 16 new products in H1, position the business for long-term growth.
Financial highlights
H1 revenue was £110.9m, down 11–13% year-over-year in constant currency.
Adjusted operating profit was £4.8m, impacted by one-off currency headwinds; adjusted diluted EPS was 0.4p.
Net debt reduced to £57.9m, with leverage at 1.8x, supported by a share placing and strong cash flow.
Adjusted cash conversion was strong at 290%, aided by inventory reduction.
Adjusted operating margin was 4.3%, down 400bps year-over-year.
Outlook and guidance
Expecting a stronger 2025 after a weak first half, with efficiency actions in H1 to benefit H2 and 2026; timing of full recovery remains uncertain due to macroeconomic and trade factors.
H2 2025 expected to show sequential revenue growth, with 50–60% drop-through to profit.
Full-year tax rate expected at 30%; cash conversion to remain above 100%; CapEx for the year around £20m.
Board expects continued deleveraging and no dividends until net debt approaches 0-1x EBITDA.
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