Power Probe’s FY25 Trading Update: 25% Revenue Growth, Strong Margins, and OEM Wins
Power Probe has kicked off life on AIM with a confident FY25 update. Revenue is expected to come in at approximately $39m, up c.25% year-on-year, with underlying EBITDA of approximately $9m. Margins held up well too: gross margin of c.40% and underlying EBITDA margin of c.23%. That mix of top-line growth and solid profitability is exactly what investors want to see from a newly listed tools brand.
The headline driver is product innovation. New launches over the last three years accounted for c.35% of FY25 revenue, more than double the prior year’s contribution, and the Group launched six new products in 2025. Management says FY25 results are in line with market expectations, and the first weeks of 2026 have been encouraging. Financials for FY25 remain subject to audit.
Key FY25 Numbers You Should Know
| Metric | FY25 |
|---|---|
| Revenue | Approximately $39m (c.+25% vs FY24) |
| Gross margin | c.40% |
| Underlying EBITDA | Approximately $9m |
| Underlying EBITDA margin | c.23% |
| New product contribution | c.35% of FY25 revenue |
| New products launched in 2025 | 6 |
| Low margin legacy accounts | c.15% of revenue in FY25 |
Note: Figures are subject to audit.
Innovation-Fuelled Growth: Why the Product Engine Matters
Power Probe’s growth story is firmly anchored in its innovation pipeline. When more than a third of revenue comes from products launched in the last three years, you’re looking at a business that isn’t just relying on a legacy catalogue. The six launches in 2025 clearly found traction, supported by a “stable core product offering” and expansion into new markets and territories.
Why this matters: fresh products typically carry better pricing and differentiation, which can support both growth and margin. The company also notes ongoing robust demand for its existing branded range, which helps to smooth execution risk as new launches scale.
OEM Programmes With Ford, Hyundai, Honda and Toyota: A 2026 Revenue Catalyst
During FY25, Power Probe opened a number of strategic accounts that facilitated entry into programmes with Ford, Hyundai, Honda and Toyota. These are expected to generate revenue in FY26. That’s a meaningful validation of the brand with blue-chip automotive names, and it can provide steadier, repeatable demand once embedded.
Two things to watch: the speed of programme roll-out and the breadth of adoption across dealer networks or service ecosystems. The RNS does not quantify the potential revenue uplift, but the direction of travel is clearly positive.
Nuneaton Distribution Hub: A Springboard into the UK and Europe
The new distribution facility in Nuneaton, opened in H2 2025, is a clear statement of intent to expand beyond the core US market into the UK and selected European regions. Management calls Europe a “major area of strategic importance” given its growth potential.
Local distribution should help reduce lead times, improve service levels and make it easier to support new channel partners. Execution here will be key – landing the right distributors and training channels to sell diagnostic tools effectively is the difference between a footprint and a flywheel.
FY26 Margin Playbook: Pricing and Mix Shift in Private Brands
Power Probe plans to enhance gross margin in FY26 via two levers. First, pricing initiatives across the branded product portfolio. Second, a deliberate shift within the private brands business towards higher margin revenue channels focused on mobile tool distributor customers, replacing low margin legacy accounts that represented c.15% of FY25 revenue.
There may be a short-term trade-off as legacy accounts are replaced, but the end goal is a cleaner, higher-quality revenue base. If executed well, this should support the Group’s already solid gross margin profile.
Charlotte Manufacturing Investment: “Made in USA” and Capacity Closer to Customers
Looking further out, investment in manufacturing assets at the Charlotte, N.C. facility is intended to strengthen the innovation pipeline and expand production capacity closer to the Group’s key US market. Management also references working towards the introduction of “Made in USA” product from Charlotte.
Onshoring elements of production can help with responsiveness, quality control and potentially margins. The RNS does not detail capex or timelines, but the strategic rationale is clear: bring design and manufacturing closer to the biggest customer base to support speed and scale.
Outlook: Momentum Continues Into 2026
Trading in the early weeks of 2026 has been encouraging. The strong momentum in new product sales seen in FY25 is expected to continue, backed by a growing pipeline and robust demand for the existing range. With OEM programmes set to contribute in FY26 and European expansion underway, the top-line growth opportunity looks well supported.
My Take: Positives, Watchouts, and What To Track Next
What looks positive
- Healthy growth with discipline: c.+25% revenue growth alongside c.40% gross margin and c.23% underlying EBITDA margin.
- Innovation doing the heavy lifting: c.35% of revenue from newer products and six launches in 2025.
- OEM validation: entry into Ford, Hyundai, Honda and Toyota programmes expected to generate FY26 revenue.
- Clear margin roadmap: pricing initiatives plus mix shift away from low margin private label accounts.
- Geographic expansion: Nuneaton distribution centre opening up the UK and selected European markets.
What to watch
- Audit finalisation: FY25 figures are subject to audit.
- OEM revenue cadence: how quickly the programmes scale in FY26.
- Gross margin in FY26: evidence that pricing and mix shift are flowing through.
- European traction: distributor wins and sell-through in the UK and selected European markets.
- Charlotte manufacturing: visibility on timing and the first “Made in USA” products.
Bottom Line: A Solid Debut Year With Clear 2026 Catalysts
Power Probe’s first update as a listed company reads well: double-digit growth, resilient margins and credible growth levers for FY26 in OEM programmes, geographic expansion and a stronger product pipeline. The strategy to reshape the private brands mix and lean on pricing should support margins, while investment in Charlotte sets the stage for longer-term capacity and innovation gains.
There are always execution risks in scaling new channels and programmes, but the building blocks are in place. If the company delivers on its FY26 margin ambitions and converts the OEM opportunities, that should reinforce confidence in the post-IPO growth story.
