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Investing.com -- XP Power reported a significant improvement in profitability during the third quarter, according to a trading update released Tuesday.
The power solutions provider generated revenue of £57.6 million in Q3, which was flat year-over-year on a constant currency basis but represented a 3% increase quarter-over-quarter. This marked an improvement from the first half of 2025 when organic revenue declined 11% compared to the same period last year.
Orders reached £55.3 million, up 18% year-over-year in constant currency terms and 2% quarter-over-quarter. This growth was primarily driven by the Industrial Technology and Healthcare sectors as customer destocking slowed. However, the company’s order book stood at £119.4 million, down 15% from the previous year, with a book-to-bill ratio of 0.96x compared to 1.02x in the first half of 2025.
Net debt increased by £2.8 million from the first half to £60.7 million, attributed to currency movements and planned capital expenditure on the new Malaysia production facility. Despite this increase, leverage improved slightly to 1.7x from 1.8x in the first half.
The company’s appeal regarding the Comet legal action was heard on September 19, 2025, by the ninth circuit in the US Court of Appeals, with the verdict now being considered by the three judges.
XP Power stated that its full-year expectations align with current market consensus, which forecasts FY25 EBITA of £17.4 million. The company expects the "material" increase in Q3 EBITA compared to the first half to be sustained through the remainder of the fiscal year.
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