## XP Power Limited2025 Annual Results Summary
**Key Highlights**
* **Revenue** £230.1 million, down 4% in constant currency due to customer destocking, particularly in the first half.
* **Order Intake** £225.9 million, up 28% in constant currency, driven by strong growth in Industrial Technology and Healthcare sectors.
* **Adjusted Operating Profit** £17.3 million, down 20% in constant currency, reflecting revenue decline but mitigated by cost control measures.
* **Net Debt** Reduced to £41.5 million, down from £93.5 million in 2024, due to strong cash generation and a share placing.
* **Gross Margin** Improved to 42.7% (adjusted), up 170 basis points, with further improvement expected as markets recover.
* **New Product Launches** 24 new products launched, focusing on innovation and market-leading solutions.
* **Strategic Decisions** Exited the RF market to focus on more attractive product categories with higher growth potential.
* **Malaysia Plant** Construction completed, with production starting in 2026, allowing closure of the China facility.
**Performance Analysis**
XP Power navigated a challenging year marked by customer destocking and macroeconomic uncertainty. Despite these headwinds, the company demonstrated resilience through
* **Cost Discipline** Implemented cost-saving measures, particularly in supply chain and manufacturing, leading to improved gross margins.
* **Inventory Management** Reduced inventory levels by 20%, optimizing cash flow and improving customer service.
* **New Business Wins** 12% growth in new business wins, highlighting continued market demand for XP Powers solutions.
* **Strategic Focus** Exiting the RF market allows XP Power to concentrate resources on high-growth areas like Low Voltage and High Voltage Divisions.
**Outlook**
XP Power anticipates improved market conditions in 2026, leading to better financial performance. The company is well-positioned to capitalize on this recovery due to its
* **Innovative Product Portfolio** Strong pipeline of new products and technology solutions.
* **Global Reach** Presence in key markets and a diverse customer base.
* **Improved Operational Efficiency** Streamlined supply chain and cost structure.
* **Strong Balance Sheet** Reduced debt and improved liquidity provide a solid foundation for growth.
**Overall**
XP Powers 2025 results reflect a year of transition, marked by challenges but also strategic progress. The companys focus on innovation, operational efficiency, and market diversification positions it well for future growth as market conditions improve.