XP Power maintains annual outlook as third-quarter orders surge

XP Power Ltd on Tuesday maintained its expectations for financial 2026, following third-quarter revenue and order intake gains.

The Singapore-based power control and conversion solutions designer, manufacturer and distributor said revenue for the third quarter ended September 30 was £63.8 million, rising 11% from £57.6 million a year earlier.

Reported revenue included a £3.7 million reduction relating to a one-off US tariff refund. Excluding this, XP Power said revenue was within guidance.

Order intake was £106.8 million, rising 93% from £55.3 million. XP Power explained that the near doubling of its order intake was primarily driven by the semiconductor manufacturing equipment and industrial technology sectors. It benefited from customers placing orders earlier than usual.

Underlying demand was expected to be similar to the second quarter, the company said.

The company's order book at the end of the quarter was £216.9 million.

Net debt fell to £4.5 million at September 30 from £47.7 million at June 30. XP Power said the reduction reflected £50.2 million in cash received following the release of the Comet litigation bond, alongside continued disciplined investment in firm order growth.

Comet had filed a lawsuit in the US against XP Power, alleging trade secret misappropriation relating to radio frequency match and generator technology.

Looking ahead, the company said its expectations for financial 2026 were unchanged, including a stronger second half. It said revenue was expected to increase further in the fourth quarter.

Improving revenue momentum and greater order book visibility have strengthened the company's confidence in financial 2027, with continued revenue growth expected and performance anticipated to be "slightly" ahead of current market expectations.

Company-compiled consensus forecasts adjusted operating profit of £35.9 million, within a range of £31.9 million to £41.3 million, and adjusted earnings per share of 75.4 pence, within a range of 63.9p to 92.7p.

"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 company said.

Shares in XP Power were down 3.6% to £1,606.00 pence per share on Tuesday morning in London.

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