XP Power backs annual outlook as margin boost drives increased profit

XP Power Ltd on Tuesday said the first half of 2026 saw a "significant, broad-based improvement" in market conditions as it reported an increased order intake.

The Singapore-based maker of power control systems said pretax profit ballooned to £5.1 million in the six months ended June 30 from £800,000 the year prior.

Revenue slipped 1.6% to £109.1 million from £110.9 million but order intake surged 48% at constant currency to £167.2 million from £112.7 million. Gross margin improved to 45.8% from 41.6%.

Diluted earnings per share amounted to 3.6 pence, swung from losses of 7.2p a year ago.

"The first half of 2026 saw a significant, broad-based improvement in market conditions across all our sectors and regions," said Chief Executive Gavin Griggs.

"I am encouraged that this reflects not only recovering end markets but also our strategy of consistent investment in our product offering," he added.

XP Power left full-year expectations unchanged and said the strong order intake in the first half supports robust revenue growth with £135 million of firm orders scheduled for the second half.

"With our markets returning to healthy growth and an expanded order book, our focus is firmly on converting this demand into revenue as we deliver our unchanged long-term strategy," CEO Griggs added.

No dividend was declared, but XP Power said the leverage ratio should return to its target range in the near future, allowing a payment to be reinstated.

Net debt to adjusted earnings before interest, tax, depreciation and amortisation fell to 1.3 times from 1.8x a year ago.

Shares in XP Power which was promoted to the FTSE 250 in May were down 0.8% at 1,718.00 pence each in London on Tuesday.

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