XP Power (LSE:XPP) has guided for full-year 2027 performance slightly ahead of current market expectations, as record third-quarter order intake and improving revenue momentum boosted confidence in the year ahead.
The London-listed designer and manufacturer of power control solutions for the semiconductor manufacturing equipment, healthcare and industrial technology sectors reported order intake of £106.8m for the third quarter ended 30 September, up 93% in constant currency against the comparative period and 22% higher than the second quarter. Revenue rose 10% in constant currency to £63.8m, which the company said was in line with its expectations; stripping out a £3.7m reduction tied to a one-off US tariff refund, revenue was £67.5m, consistent with its £135m guidance for the second half.
The book-to-bill ratio reached 1.67x, up from 0.96x a year earlier and the highest in the recent quarterly run disclosed by the company, with the order book standing at £216.9m at quarter-end.
Order growth was broad-based by sector and region, led by semiconductor manufacturing equipment and industrial technology, though the company said some customers placed orders earlier than usual in response to extending industry lead times, with underlying demand estimated to be similar to the second quarter.
Net debt fell sharply to £4.5m at 30 September from £47.7m at the end of June, after the company received £50.2m in cash following the release of the Comet litigation bond, leaving leverage at 0.1x; XP Power expects to generate net cash in the fourth quarter.
The company said it will continue to defend its position in the Comet trade-secret litigation, which saw the Ninth Circuit Court of Appeals reverse a 2022 District Court judgment in July and remand the case for a new trial, vacating prior awards of roughly $40m in damages and more than $17m in fees.
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XP Power left its FY26 expectations unchanged, including a significantly stronger second-half performance than the first half, with revenue expected to increase further in the fourth quarter as the order book converts and manufacturing output continues to improve.
"We remain mindful of macroeconomic and geopolitical conditions that could affect supply chains and future demand, although we have not seen any impact to date," the company said, adding that its FY27 guidance reflects expected revenue growth and operational leverage.
The company compiled analyst consensus as of 19 October for FY26 at adjusted operating profit of £26.4m and adjusted EPS of 48.5p, with FY27 consensus at adjusted operating profit of £35.9m and adjusted EPS of 75.4p.