XP Power Limited (XPPLF) Q4 2025 Earnings Call Transcript

SA Transcripts158.89K FollowersFollow5ShareSaveCommentsPlay Earnings CallPlay Earnings Call XP Power Limited (XPPLF) Q4 2025 Earnings Call March 3, 2026 4:00 AM EST Company Participants Gavin Griggs - CEO & Executive DirectorMatthew Webb - CFO & Executive Director Conference Call Participants Thomas Elgar - Deutsche Bank AG, Research DivisionLydia Kenny - Investec Bank plc, Research DivisionThomas Rands - Joh. Berenberg, Gossler & Co. KG, Research DivisionAndrew Humphrey - Peel Hunt LLP, Research DivisionDavid Richard Farrell - Jefferies LLC, Research Division Presentation Gavin GriggsCEO & Executive Director Good morning, everyone. Thank you for joining us today whether in person or online. [Operator Instructions] So at the start of 2025, we expected end markets to be soft, which proved to be the case, especially in the first half. Encouragingly, we started to see the level of customer order intake improve across our end markets as the year progressed. Our revenue for the year declined, we saw 7% growth in the second half relative to the first half of the year. We also delivered an improvement in profitability where the decisive actions were taken to manage costs as revenues decreased led to a step-up in the operating profit from GBP 4.8 million in the first half of the year to GBP 12.5 million in the second half. We also saw continued strong cash conversion, building on the progress from 2024. By focusing on what we can control, such as supply chain costs and manufacturing efficiency, we've improved gross margins further, whilst also setting up the business to be more profitable as the end markets recover. During the year, we also made some structural changes to our portfolio, announcing the exit from the RF market to allow us to focus -- have greater focus on the low- and high-voltage markets where we have significantly stronger market position and financial returns. Further, we have continued to invest in innovation and infrastructure, and we're excited about our