XP Power (LSE:XPP), the designer and manufacturer of power control solutions for the semiconductor manufacturing equipment, healthcare and industrial technology sectors, reported order intake of £167.2m in the six months to 30 June, up 55% on the prior period in constant currency.
Revenue rose 2% in constant currency to £109.1m, with growth accelerating from £51.8m in the first quarter to £57.3m in the second. The book-to-bill ratio reached 1.53 times, the highest since the first half of 2022, with £135m of firm orders already scheduled for the second half.
Adjusted operating profit rose to £8.6m, lifting adjusted operating margin to 7.9% from 4.3% a year earlier, while adjusted gross margin climbed 450 basis points to 45.9%, ahead of the company's mid-40s target.
Net debt stood at £47.7m, equivalent to 1.3 times last-twelve-month adjusted EBITDA, in line with expectations and expected to reduce by year-end.
"The first half of 2026 saw a significant, broad-based improvement in market conditions across all our sectors and regions, with order intake up 55% in constant currency", said chief executive Gavin Griggs.
The company has closed its China factory, with its Malaysia site nearing pilot production and Vietnam output being expanded to support future growth.
Full-year expectations remain unchanged.
News Intelligence what this means for the company
XP Power's order intake surged 55% in H1 2026, with a book-to-bill ratio of 1.53x—the highest since H1 2022—and £135m of firm orders already scheduled for H2, signalling a broad-based recovery across its semiconductor equipment, healthcare and industrial sectors. Revenue growth accelerated Q-on-Q (£51.8m to £57.3m), adjusted operating margin expanded 360 basis points to 7.9%, and gross margin jumped 450 basis points to 45.9%, yet management kept full-year guidance unchanged, suggesting either conservative positioning or confidence that H2 will deliver without surprise upside.
The order backlog and margin expansion materially strengthen the near-term earnings trajectory, but unchanged full-year guidance caps upside surprise risk. The Ninth Circuit's reversal of the Comet Technologies trade-secret judgment (vacating ~$57m in damages and fees) removes a material legal overhang, though the remand for retrial leaves residual uncertainty.
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A material beat
Shore Capital analyst Tom Fraine, in a note, said XP Power's 1H results and the Q2 order-intake acceleration materially beat company expectations and underpin a brighter outlook. The analyst, who rates the stock as a Buy with a 2,048p price target, flagged Q2 order intake rising 11.4% versus Q1 as the key forward catalyst.
Fraine added also noted the order book of £173.9m (1.53x book-to-bill) and argues full-year revenue should exceed c.£244m versus his prior £238.5m forecast, leaving scope to lift the target and reach a £40 price point sooner.