Asia stocks edge higher as tech meanders on Nvidia; Hong Kong hit by soft earnings
Investing.com -- XP Power Ltd (LON:XPP) on Tuesday reported first-half 2025 EBITA of £4.8 million, falling 42% below analyst expectations, with results significantly impacted by a £2.3 million foreign exchange headwind.
Revenue for the period reached £111 million, representing an 11% year-over-year decline in constant currency terms and 13% on a reported basis.
Despite these challenges, the power solutions provider achieved a book-to-bill ratio of 1.02x for the first half, compared to 0.7x in the same period last year.
The company saw orders improve to £113 million, up 28% year-over-year across all sectors. By end market, the semiconductor segment posted a book-to-bill ratio of 0.88x, while industrial technology led with 1.20x, and healthcare recorded 0.94x.
XP Power’s adjusted earnings per share dropped dramatically to 0.4p, representing a 98% year-over-year decline. Net debt stood at £57.9 million, down 44% year-over-year following a share placement, resulting in a net debt to EBITDA ratio of 1.8x.
On a positive note, gross margin improved by 80 basis points year-over-year despite top-line pressures. The company also announced £5.5 million in new cost reductions that will take effect during the second half of 2025.
Management expects "healthy sequential progress" in the second half of the year, citing signs of improvement in key end markets.
However, they acknowledged a "range of outcomes" for full-year 2025 results, depending on the strength of the fourth-quarter orderbook.
XP Power shares are currently trading at 851.00p, with Jefferies analysts maintaining a hold rating and a price target of 900.00p, suggesting a 6% upside potential.