XP Power ends year as expected, plans exit from RF business

(Sharecast News) - XP Power said on Monday that its full-year performance for 2025 was in line with market expectations, supported by a significantly stronger second half, as it reported improving order momentum alongside a managed exit from its radio frequency (RF) business and progress on its manufacturing footprint.

For the fourth quarter, order intake rose 29% year on year to £57.9m, or 32% on a constant currency basis, while revenue increased 2% to £61.2m, up 5% in constant currency terms.

The London-listed firm said its quarterly book-to-bill ratio improved to 0.95x from 0.75x a year earlier.

For the full year, order intake climbed 24% to £225.9m, or 28% in constant currency, while revenue fell 7% to £229.7m, reflecting softer conditions earlier in the year.

Full-year book-to-bill strengthened to 0.98x from 0.73x, and the order book stood at £116.1m at the end of December.

Subject to audit, the board said it expected full-year profit and earnings per share to be in line with current market expectations, citing the delivery of a materially improved second-half performance.

Company-compiled analyst consensus as of 19 January forecast adjusted operating profit of £17.3m and adjusted earnings per share of 21.4p for 2025.

The group also announced a strategic decision to exit the RF market, citing historically lower margins and returns compared with the rest of the business, as well as the impact of US export controls introduced in late 2024 that will prevent sales of RF products to key Chinese customers after 2025.

XP Power said the exit would be managed over three years to support customers through an orderly transition, with final delivery requirements agreed and a £16.4m pre-payment received from a key customer in December for planned 2026 deliveries.

The RF division generated revenue of £24.3m in 2025 and was close to break-even, with annual revenue expected to remain at a similar level during the wind-down period.

On manufacturing, XP Power confirmed that construction of its new facility in Malaysia was complete and expected to become operational during 2026.

Completion of the site enabled the closure of its Kunshan factory in China in December, with the group saying Malaysia offered greater flexibility to serve global markets, particularly the US, and that it had sufficient spare capacity elsewhere in its network to manage the transition.

Net debt at 31 December was £41.6m, down £19.1m from the end of September, including the RF-related pre-payment, with leverage ending the year at around 1.2 times.

XP Power said it would publish its full-year results on 3 March.

At 0922 GMT, shares in XP Power were up 4.29% at 943.8p.

Reporting by Josh White for Sharecast.com.