XP Power shares fell on Tuesday despite announcing record order intake, driven by strong demand from semiconductor and industrial customers, and the company raised its expectations for next year.
Perhaps the link to the AI trade and a surging rally in XP Power shares so far this year left investors wanting more.
The maker of power control products said third-quarter orders reached £106.8m, up 93% year on year and 22% from the previous quarter, led by the semiconductor manufacturing equipment and industrial technology sectors.
The surge pushed its book-to-bill ratio, a measure of orders against sales, to a strong 1.67x, suggesting future revenue growth, though it noted some customers ordered earlier than usual as industry lead times lengthened. Revenue rose 11% to £63.8m.
The company’s balance sheet strengthened sharply, with net debt falling to £4.5m from £47.7m three months earlier, helped by the release of a £50m bond tied to its ongoing Comet litigation. It expects to be net cash by year-end.
XP Power kept its full-year guidance unchanged, citing a stronger second half, and said the improving order book gave it confidence it will deliver slightly ahead of market expectations in 2027.
XP Power shares fell 3% on Tuesday but remain 92% higher year-to-date.