XP Power recorded first-quarter order intake of £79.1 million, representing a 48% increase year-over-year on a constant-currency basis and marking the company's largest quarterly intake since the third quarter of 2022, the company said in a trading update on Thursday.
First-quarter revenue totalled £51.8 million, up 3% year-over-year in constant-currency terms but down 16% from the prior quarter. The sequential decline reflected a combination of normal seasonal dynamics, the ending of some export licences held by Chinese semiconductor customers for shipments to the United States, and ongoing transfer of production from China to Vietnam.
Orders rose across all three of XP Power's end-markets. Semiconductor demand was particularly strong, while Healthcare and Industrial Technology continued to make progress. Management said the improvement in intake was broad-based, with growth evident across all geographic regions.
The company closed the period with an order book of £143.1 million, up from £115.8 million at the end of the previous quarter, an increase of 24%. XP Power's book-to-bill ratio for the first quarter stood at 1.53x, compared with 0.98x for the full year 2025.
On the balance sheet, net debt rose slightly to £41.8 million from £41.5 million at the end of 2025, delivering leverage of 1.2x. The group said it expects net debt to increase modestly in the second quarter, driven by inventory build and payments related to work on its Malaysia site.
XP Power cautioned that the unusually high level of first-quarter orders may not be sustained if semiconductor customers are restocking inventory, although management expects intake to remain above 2025 run-rate levels. The company reiterated its guidance for 2026, which includes a weighting towards the second half of the year.
Investors will look to first-half results, which the company has scheduled for release on August 4, for further visibility on revenue progression and working-capital trends.
Context and implications
The mix of a strong order book and a quarter-on-quarter revenue decline highlights the transitional dynamics XP Power is navigating as it shifts production locations and manages customer export licence changes. The order momentum across semiconductors, healthcare and industrial technology suggests demand is broad-based, while the modest rise in net debt reflects targeted investments in inventory and capacity.