XP Power (XPP) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 order intake rose 11% year-over-year in constant currency, led by Semiconductor Manufacturing Equipment sector.

• Revenue for Q3 2024 was £60.2m, in line with expectations but down 19% year-over-year in constant currency.

• Book-to-bill ratio improved to 0.81x from 0.60x in Q3 2023, indicating strengthening demand.

• Strong operating cash generation continued, with net debt reduced by £5.5m sequentially to £98.7m.

Financial highlights

• Q3 2024 revenue: £60.2m, down from £75.1m in Q3 2023.

• Q3 2024 order intake: £48.8m, up from £44.7m in Q3 2023.

• Year-to-date revenue: £187.3m; year-to-date order intake: £136.7m.

• Foreign exchange movements reduced Q3 profit by approximately £0.7m.

Outlook and guidance

• Full-year performance remains within current analyst expectations for Adjusted Operating Profit (£27.4m–£30.1m) on a constant currency basis.

• Q4 performance dependent on further order conversion in Semis and slower destocking in Industrial Technology and Healthcare.