XP Power (LSE:XPP) issued a Q1 trading update for the quarter ended 31 March saying order intake rose sharply to £79.1m while full-year expectations were unchanged.
Order intake was £79.1m, 38% higher than the preceding quarter and 48% higher than the comparative period in constant currency, improving across all regions with particularly strong demand from the Semiconductor Manufacturing Equipment sector, the Group said, and XP Power designs and manufactures power controllers for semiconductor equipment, industrial technology and healthcare OEMs, with circa 37% of sales in Semiconductor Manufacturing Equipment, circa 38% in Industrial Technology and circa 25% in Healthcare.
Q1 revenue was £51.8m, in line with expectations, 16% lower than the preceding quarter but 3% higher than the comparative period in constant currency, with the sequential reduction attributed to normal seasonality, the end of some US export licences for Semiconductor Manufacturing Equipment customers in China and the planned transfer of production from its closed China site to Vietnam which temporarily slowed deliveries, and the Group expects revenue to increase in Q2.
The order book at the end of the quarter was £143.1m and management said the material increase in order intake has significantly improved visibility for 2026, with quarterly intake expected to remain above 2025 run rates but potentially short of Q1 highs.
Net debt as of 31 March was £41.8m, similar to the 2025 year end, leverage was 1.2x and net debt is expected to increase modestly in Q2 owing to final payments for Malaysia site building work and inventory investment to support delivery of increased orders.
The Group said it remains mindful of macroeconomic and geopolitical risks that could affect supply chains and demand but has not seen such impacts to date and that its full-year expectations are unchanged, including for a second half weighting.
The Group will publish its 2026 interim results on 4 August.
