Investors are betting on a sharp revenue and earnings recovery in 2026 for XP Power (XPP). The power controls manufacturer unveiled significantly improved new orders in both its Q4 and full year 2025 (to end December).
In early trading on Monday, XP Power shares were up more than 4% at 944p.
XP Power reported Q4 order intake up 29% year-on-year at £57.9 million, and a 24% hike for the year at £225.9 million. The company’s book-to-bill ratio improved to 0.98x for the full year, up from 0.73x in 2024. At the end of December, XP Power’s order book stood at £116.1 million.
| XP Power (XPP) | Price: 944p | Market cap: £265 million |
Revenue for the year was down 7% at £229.7 million with the company caught up in the tech industry turbulance as Washington and Beijing lock horns.
RF exit
XP Power also announced its decision to exit the RF (radio frequency) market through a managed wind down over the next three years. The RF Division generated £24.3 million in revenue in 2025 and operated near break-even.
The company received a £16.4 million pre-payment from a key customer in December for planned 2026 deliveries.
Company compiled forecast data for 2025 is currently pitched at 21.4p EPS (range of 16.6p to 24.4p) and £17.3 million adjusted operating profit (range of £16.3 million to £18.2 million). Analyst estimates for 2026 and 2027 call for 49p and 73.1p EPS, on roughly £244 million 261.5 million revenue.
XP Power will report its 2025 full year results on the 3 March 2026.
These are very encouraging results that promise substantial operational recovery potential after significant upheaval. Exiting RF makes sense given the division’s limited profit potential and margins well below company averages.
Management’s tone also opens the door to a return of dividends having axed shareholder payouts in late 2023. Income has always been a core part of XP Power’s investment thesis, and even a rebased dividend would bolster confidence, and could spark a sharp rally for the share price.
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