XP Power Ltd.

First-half revenue was GBP 109.1 million, up 2% in constant currency, while adjusted gross margin rose 450 basis points to 45.9%. Adjusted operating profit increased to GBP 8.6 million, adjusted operating margin was 7.9%, adjusted diluted EPS was 14.2p, and net debt ended at GBP 47.7 million with leverage of 1.3x. Order intake reached GBP 167.2 million, up almost 55% year on year in constant currency, and the order book grew to GBP 174 million. For the second half, management said firm orders support revenue of at least GBP 135 million, implying full-year revenue of at least GBP 244 million, with full-year expectations unchanged. They also guided to a full-year effective tax rate of 20% to 25%, total capital spend of GBP 25 million to GBP 30 million, and leverage approaching 1x by year-end.

Gavin Griggs struck an optimistic tone, saying XP is seeing a strong recovery across end markets and that its more focused strategy is paying off. He emphasized semiconductors, industrial technology, and healthcare as the company’s core growth areas, with market demand increasingly favoring application-specific power solutions and closer customer engineering engagement. He also highlighted the Malaysia facility, the Silicon Valley site, and broader manufacturing investments as enablers of multiyear growth and operational leverage.

Matthew Webb focused on the financial turnaround: gross margin improved to 45.9%, operating profit rose to GBP 8.6 million, financing expense fell 13% to GBP 3.5 million, and EPS rose to 14.2p. He said operating cash was GBP 8.4 million, adjusted EBITDA was GBP 16.3 million, and working capital investment lifted operating cash conversion to 52% under the new EBITDA-based definition. He also noted net capital expenditure of GBP 10.1 million, Malaysia total cost of GBP 20 million completed on budget, net debt of GBP 47.7 million, and expected leverage approaching 1x by year-end.

Analysts pressed on the sustainability of semiconductor strength, and management said the gain reflected both market recovery and new business wins across etch, deposition, ion implant, and inspection, plus some share gain after a competitor’s business continuity issue. On pricing and lead times, Webb said lead times were around 5 to 6 months and slightly extended in Q2, with underlying price increases contributing in H1 and likely to contribute more into 2027. Questions on China confirmed XP has exited direct Chinese semiconductor supply after RF license expiries and U.S. entity-list restrictions, while management said the Comet appeal timeline has passed and the case is expected to return to District Court. On acquisition activity, Griggs said the Astrodyne deal at TE looked interesting but declined to comment on likely consolidation.