XP Power delivered robust revenue growth and margin expansion in Q4, driven by resilient demand in defense and industrial electronics. The company's performance reflects broader trends in supply chain stability and sustained defense spending across key markets.
- Q4 revenue reached $148 million, up 12% YoY
- Adjusted EBITDA margin expanded to 21.3% from 19.5% in Q4 2024
- Industrial segment revenue: $97 million (+14% YoY)
- Defense and aerospace segment: $43 million (+7% YoY)
- Inventory days reduced to 72 in Q4 2025
- FY2025 revenue guidance: $610M–$630M, EBITDA margin: 20.5%–21.5%
XP Power reported a 12% year-over-year increase in Q4 revenue, reaching $148 million, with adjusted EBITDA margin expanding to 21.3%, up 180 basis points from the prior-year period. This growth was primarily fueled by elevated demand in defense electronics and industrial automation systems, particularly in North America and Western Europe. The company's ability to maintain strong operational leverage despite macroeconomic headwinds underscores improved supply chain efficiency and cost management. The industrial segment contributed $97 million in revenue, a 14% increase, while the defense and aerospace division recorded $43 million, a 7% rise, supported by long-term contracts and component backlogs. XPW, the company's primary ticker, saw its share price rise 5.2% in after-hours trading, reflecting investor confidence in the sustainability of the margin expansion. Investors also noted the company's reduced inventory days, which declined to 72 from 81 in Q4 2024, indicating tighter working capital management. The results signal growing momentum in the industrial electronics sector, with related entities such as LHX and RTX benefiting from similar defense modernization trends and capital investment cycles. XP Power's guidance for FY2025 projects revenue in the range of $610 million to $630 million, with EBITDA margin expected to stabilize between 20.5% and 21.5%, suggesting continued profitability despite inflationary pressures and geopolitical uncertainties.