REG - ITM Power PLC - Preliminary Results
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RNS Number : 2577V ITM Power PLC 14 August 2025
14 August 2025
ITM Power plc
Preliminary Results for the financial year to 30 April 2025 (FY25)
We are pleased to announce a strong set of results, reflecting continued
growth, commercial momentum and disciplined capital management.
Performance highlights
· Revenue increased by more than 50% year-on-year to £26.0m (FY24:
£16.5m), marking an exceptional growth of 400% over two years. This is within
the upgraded FY25 guidance and significantly ahead of original guidance.
· Adjusted EBITDA loss of £33.0m (FY24: £30.4m)* reflecting
working through the delivery of legacy contracts plus under-absorption of
operational and overhead costs as we continue to fill our factory. This lies
in the better end of our guidance range of £32.0 to £36.0m.
· Cash at the year-end of £207.0m (FY24: £230.3m)**,
significantly ahead of original guidance of between £160m and £175m, with a
positive cash flow in the second half of the year, underscoring our sharp
focus on cash discipline and operational efficiency.
· Record contracted firm year-end order backlog of £145.1m (FY24:
£79.7m), with 60% of backlog now being derived from profitable contracts, the
remaining 40% being legacy contracts. We expect to recognise approximately
half of the legacy contracts in revenue during FY26.
Strategic and commercial highlights
· Transformative improvement in our Factory Acceptance Test (FAT)
first-time pass rate, improving from below 50% to 99%
· NEPTUNE V has gained significant market traction
· Deep in-house value creation and full ownership of all core
science and manufacturing processes enable rapid innovation cycles and supply
chain resilience
· Our future stack generation, CHRONOS, is progressing well and
within projected timescales
· Contract signed for REFHYNE II 100MW project for Shell
· Three NEPTUNE V contracts signed, totalling 40MW
· FEED contracts for two projects totalling 60MW
· Inauguration of the 24MW plant for Yara in Norway
· Commissioned 4MW pilot plant for RWE in Lingen, Germany
· Collaboration on sustainable transport and infrastructure with
Deutsche Bahn AG
· Further 40% iridium loading reduction validated, lowering costs
Post year-end momentum
· NEPTUNE V contract with Westnetz in Germany
· NEPTUNE II contract with a cement producer in Spain
· POSEIDON contract with MorGen Energy for its 20MW West Wales
project
· Selected by Uniper and signed FEED study on a 120MW project
· Selected as the supplier for a project in the APAC region of over
300MW capacity
· Strong sales pipeline, including high customer demand for NEPTUNE
V
· Successful launch of Hydropulse, our Build, Own and Operate
venture, with positive customer response
FY26 guidance: building on our momentum
· Revenue between £35m and £40m, representing a c.50%
year-on-year growth, with the majority of the revenue derived from contracted
order backlog. This marks a more than 600% increase over three years.
· Adjusted EBITDA loss between £27m and £29m, as we continue to
fill our factory for increased cost-absorption and recognise revenue on the
legacy loss-making portion of our contracted order backlog.
· Cash between £170m and £175m, in line with our
capital-efficient scale-up strategy.
*Adjusted EBITDA is a non-statutory measure. The calculation method is set out
in Note 4
**Cash is stated after an exceptional payment of £13m as previously
disclosed.
CHIEF EXECUTIVE OFFICER'S STATEMENT
"Over the past 25 years, ITM has evolved into a leader in electrolyser
technology with a focus on high-performing, reliable solutions for the
accelerating green hydrogen market. Our proprietary stack technology lies at
the core of our success, enabling us to deploy scalable, cutting-edge
solutions for projects of any size, across nearly every region of the world.
Our commercial momentum continues to gather pace with a contracted order
backlog at year-end standing at £145.1m, representing an increase of almost
90% year-on-year.
Financial discipline remains central to our strategy. Our year-end cash
position of £207m, including positive cash flow in the second half of the
year, demonstrates robust capital management and positions us to scale with
confidence.
In FY25, our revenue grew by more than 50%, marking the second consecutive
year of record-breaking performance. This milestone represents not only the
highest revenue in the company's history but also a fivefold increase compared
to the year ending April 2023. It demonstrates our ability to convert market
demand into commercial success.
Additionally, operational excellence is fundamental to our long-term strategy.
Our commitment to manufacturing quality has driven a transformative
improvement in our Factory Acceptance Test (FAT) first-time pass rate,
improving from below 50% to 99%, reflecting stronger processes, efficiency,
product reliability and execution capability.
Our market-leading position is underpinned by continuous technological
innovation. We remain agile and responsive to the evolving needs of our
customers in a dynamic global environment. There is no greater example of this
than the launch of POSEIDON and NEPTUNE V, which have been met with customer
enthusiasm and commercial success.
Our technology advantage is clear and differentiated. We retain full ownership
of our core science and manufacturing processes, ensuring maximum value-add,
rapid innovation cycles, and supply chain resilience. Our electrolysers are
already being deployed in landmark projects worldwide, including for Yara in
Porsgrunn (24MW), for RWE in Lingen (200MW) and REFHYNE II for Shell in
Wesseling (100MW), with the latter two projects currently under construction.
Since the product launch in May, during the financial year, we have already
announced three NEPTUNE V contracts for eight units, totalling 40MW, along
with two Front-End Engineering Design (FEED) contracts of 50MW and 10MW
respectively. Since year-end, we signed a contract for a NEPTUNE V unit with
Westnetz and were selected by Uniper for their 120MW Humber H2ub® (Green)
project in the UK, which will consist of six 20MW POSEIDON core electrolysis
process modules. Furthermore, we signed a POSEIDON supply agreement with
MorGen Energy for their 20MW West Wales Hydrogen Project. We also announced a
plant integration engineering package for EDF Renewables UK and Hynamics, a
100% subsidiary of the EDF Group, utilising four NEPTUNE II units, and a
contract to supply a NEPTUNE II unit to a leading cement producer in Spain.
With market demand accelerating, a world-class product portfolio, and a proven
track record of execution, along with strong reference plants, ITM is
well-positioned to lead the green hydrogen industry into its next phase of
growth.
The market for green hydrogen
Regulation and incentives
Over the past year, elections in over 70 countries have shaped the policy and
economic landscape for nearly half the world's population. While political
shifts and global uncertainty have influenced energy and climate policies, one
thing remains clear: the energy transition is accelerating.
This transition is not only about decarbonisation-it's about energy security,
economic resilience, and a diversified energy mix. Green hydrogen remains
central to this vision. While early excitement led to unrealistic
expectations, a course correction was inevitable for such a young sector
facing global economic headwinds. Rather than signalling failure, current
market adjustments reflect a healthy maturation process. The customer
landscape, supply chains and technologies are evolving, weeding out weaker
projects and paving the way for a more resilient, commercially viable hydrogen
market.
Governments continue to play a vital role. Voluntary measures such as policy
direction and decarbonisation targets, combined with regulatory tools like
mandates, quotas, and carbon pricing, can stimulate demand in both existing
and emerging sectors - from traditional grey hydrogen users to mobility, green
steel, glass, maritime, and aviation.
By investing in hydrogen infrastructure ahead of market demand, economies can
foster innovation, maintain technological leadership, and strengthen energy
independence. Effective subsidies and carbon pricing will help close the cost
gap, driving adoption and growth. Waiting for perfect market conditions risks
falling behind in a technology vital to the global energy transition.
Across Europe, the Net-Zero Industry Act (NZIA) and the Renewable Energy
Directive III (RED III) are driving investment and regulatory certainty. The
EU aims to produce 10 Mt and import 10 Mt of green hydrogen by 2030, with
binding targets to accelerate renewable hydrogen adoption across industries.
Substantial funding is already flowing into green hydrogen projects,
infrastructure, and decarbonisation initiatives.
Germany, Europe's largest economy, is positioning itself as a leader in the
green hydrogen transition. The government has suspended its constitutional
debt brake to unlock €500 billion in infrastructure investments, a
significant portion of which is earmarked for climate and energy
transformation. With net zero by 2045 now enshrined in its constitution,
Germany is setting a clear long-term policy signal. The country has emerged as
a key market for ITM.
In the UK, progress is underway: 11 projects totalling 125MW were selected
under the first Hydrogen Allocation Round (HAR), awaiting Final Investment
Decision (FID). HAR2 has shortlisted 27 projects (875MW), alongside a £500m
investment to develop the UK's first regional hydrogen transport and storage
network. Looking ahead, HAR3 is expected to launch in late 2025, with HAR4 to
follow in 2026, providing a clear long-term foundation for project developers
and investors.
In the US, recent legislation has implications for green hydrogen and the
Section 45V tax credits. Whilst the availability of the tax credits was
extended, the broader rollback of clean energy incentives is likely to pose
challenges and given this, our asset-light approach in the region continues.
Also elsewhere, hydrogen strategies are gaining pace. Japan's Hydrogen Society
Promotion Act, which came into effect in October last year, aims to accelerate
the adoption of low-carbon hydrogen by providing financial assistance to the
costs of hydrogen production and infrastructure development, with its first
$20bn scheme oversubscribed. In September, Australia updated its National
Hydrogen Strategy, which included an A$8bn production tax incentive and
additional green hydrogen production tax credits to unlock private sector
investment.
Together, these developments reflect a growing global commitment to hydrogen
as a cornerstone of the energy transition, creating new opportunities for
collaboration and investment.
Customer activity
Our pipeline of project opportunities is expanding. Whether enabling
refineries transitioning to green hydrogen or utility companies optimising
excess renewable power, ITM remains a key player in the transformation.
Europe is the most important market for green hydrogen today, with projects
advancing at scale and unprecedented industry participation. Leading energy
players are building significant portfolios, and we are proud to be at the
forefront of this momentum.
Our solutions are enabling a wide range of applications - from mobility
applications and specific industrial use cases, such as in distilleries or
semiconductor manufacturing. Across diverse sectors, our technology is setting
new benchmarks for performance, operational flexibility, reliability and
safety.
Customers are now leveraging insights from their pilot projects or learning
from industry reports on early-stage deployments. This has heightened their
focus on verified technology performance, system design, integration
efficiency, and execution capabilities across technology providers. In this
environment, real-world operational data has become a key differentiator - and
ITM is uniquely positioned. Thanks to the successful delivery and operation of
flagship projects, we offer customers proven technology, robust system
performance, and the confidence to scale with certainty. Our ability to
demonstrate reliability and efficiency in live plants underscores our
credibility as the industry transitions from demonstration to industrial
deployment.
Strategic update: our priorities are clear
The market outlook for green hydrogen remains strong, with sustained growth
expected over the coming years. Although wider market FIDs have experienced
delays relative to initial projections, positive momentum is building. In this
environment, operational agility and financial discipline are key to remaining
strategically positioned to capitalise on emerging opportunities.
Our strategic priorities are aligned with our vision: delivering best-in-class
electrolysers, scaling operations profitably to meet the growing demand, and
expanding our global presence to maximise market reach over time.
To help us achieve our vision and further accelerate our growth, we launched
Hydropulse in June, a build, own, and operate business model that will consist
of decentralised green hydrogen production plants using ITM's modular NEPTUNE
technology, with a focus on serving industrial customers under long-term
offtake agreements.
The launch of Hydropulse opens a new chapter for ITM and the green hydrogen
industry. By addressing the bankability hurdle of green hydrogen projects
through capital expenditure, operations, and technology risk mitigation for
the end user, Hydropulse will solve the most pressing real-world challenges
that are holding back exponential industry growth.
Outlook
Our technology sets a global benchmark, delivering cutting-edge innovation and
industry-leading performance. Operationally, we are in an exceptional
position; we pair agility with scale, ensuring we stay ahead of evolving
market dynamics.
Our next-generation stack platform, CHRONOS, is progressing well through
development and validation, and is destined to further substantiate our lead
among PEM electrolyser companies.
With a strong balance sheet, clear strategic focus on the highest-growth
hydrogen markets, and our agility, we are uniquely positioned for sustained
success. Our record order backlog, expanding sales pipeline, and commercial
traction are driving tangible momentum on our pathway to profitability.
I am confident in our strategy and business model. We are delivering on our
commitments, capturing market opportunities, and creating long-term value for
our shareholders as we continue to advance the global energy transition."
Dennis Schulz, Amy Grey, and Dr Simon Bourne will present to analysts and
investors at 9:00 a.m. BST.
The presentation will be via the Investor Meet Company platform. Questions can
be submitted pre-event via the Investor Meet Company dashboard at any time
during the presentation. Analysts and investors can sign up to Investor Meet
Company for free via:
https://www.investormeetcompany.com/itm-power-plc/register-investor
(https://www.investormeetcompany.com/itm-power-plc/register-investor)
https://www.investormeetcompany.com/itm-power-plc/register-investor
(https://www.investormeetcompany.com/itm-power-plc/register-investor) .
Those who follow the Company on the Investor Meet Company platform will
automatically be invited.
A recording will be made available on the Investor Relations section of the
ITM website after the event.
For further information, please visit www.itm-power.com
(http://www.itm-power.com/) or contact:
ITM Power plc
Justin Scarborough, Head of Investor Relations +44 (0)114 551 1080
Berenberg
Ciaran Walsh, Harry Nicholas +44 (0)20 3207 7800
J.P. Morgan Cazenove
Richard Perelman, Charles Oakes +44 (0)20 7742 4000
About ITM Power plc:
ITM Power was founded in 2000 and ITM Power plc was admitted to the AIM of the
London Stock Exchange in 2004. Headquartered in Sheffield, England, ITM Power
designs and manufactures electrolysers based on proton exchange membrane (PEM)
technology to produce green hydrogen, the only net zero energy gas, using
renewable electricity and water.
STATEMENT FROM THE CHAIR OF THE BOARD
This will be my final annual statement to you, following the announcement that
Jürgen Nowicki will succeed me on 15 January 2026. It has been an honour and
a privilege to be part of ITM's journey over the past eleven years, and to
have served as Chair over the last six years.
Over the past year, we have continued to execute our three-step strategy to
simplify our product portfolio, improve our cost and capital discipline, and
debottleneck our manufacturing facilities. We have achieved many successes,
most notably the launch of NEPTUNE V, our full-scope 5MW containerised
electrolyser plant.
It was pleasing to announce financial results that exceeded our original
guidance, particularly in revenue and our year-end cash position of £207m,
which our continued cost and capital discipline have enabled us to achieve.
In April, we celebrated ITM's 25th Anniversary. Our journey has not been
without its challenges, but the momentum seen in the company today validates
our ambitions, and a bright future lies ahead.
The macro picture
If net zero targets are to be achieved by 2050 and fossil fuels are to be
phased out, extensive investments across every relevant sector are still
required to transform and enable the implementation of clean technologies at
the speed and scale required. Global efforts to decarbonise may have lost some
of the elevated expectations of four years ago, but the energy transition will
continue to gather momentum.
It is clear that the energy transition will not follow a straight path. The
direction of travel, however, is very clear. The world needs more energy in
all forms to meet growing demand. Green hydrogen will have a major role to
play in this. It is a clean, versatile energy carrier. It will undeniably
become a significant part of the global energy mix and be a key enabler in
decarbonising the global energy system, whether as a feedstock in sectors such
as chemicals and refining, as a fuel where electrification is not possible due
to the need for high-temperature heat, or as a source of flexible power
generation.
With our world-leading technology and manufacturing capability, ITM will play
a significant role in the green hydrogen economy. We are as ambitious and
excited today as we were when the company was formed twenty-five years ago.
Environmental, social and governance (ESG) objectives
We are dedicated to delivering robust ESG performance, driven by our desire to
uphold the highest ethical standards. Our MSCI rating of A demonstrates that
our practices are well aligned with shareholder interests, and we are proud to
hold this rating. It also indicates that we are a business setting the
standard for how our sector manages the biggest ESG risks and opportunities.
Board changes
In January 2025, Amy Grey joined us as our new Chief Financial Officer,
replacing Andy Allen, to whom we would like to extend our thanks for his
support during the transition. Additionally, we announced that Matthias von
Plotho had been appointed as a Non-Executive Director to serve as Linde's
nominated Board representative, replacing Jürgen Nowicki, who resigned from
the Board at the same time.
Subsequently, we announced in June 2025 that Jürgen Nowicki will succeed me
as Chair, and he will assume his new position on 15 January 2026. It has been
my honour to serve ITM and to have played a role in its transition from a
development-stage company to an established commercial business and a market
leader in electrolysers.
We also announced that Sir Warren East and John Howarth will be appointed as
Non-Executive Directors, effective following our Annual General Meeting (AGM)
on 8 October 2025.
Warren brings a wealth of global leadership experience from the technology and
engineering sectors. He spent thirty years in the semiconductor industry,
serving as CEO of ARM from 2001 to 2013. He was then appointed CEO of
Rolls-Royce in 2015, with a mission to modernise the company. He stepped down
from his role at the end of 2022. Currently, he serves as a Non-Executive
Director at ASML NV and Tokamak Energy Ltd., and is the Chair of NATS, as well
as the President of the Institution of Engineering and Technology (IET).
John is a Chartered Accountant with deep expertise in manufacturing, renewable
energy, professional services and aerospace. He is currently a Partner at
S&W LLP, where he provides audit and accounting advisory services to a
range of listed and private companies. His previous roles include Partner at
EY LLP and senior finance roles at Future plc and PwC LLP.
Warren will be a member of the Audit and Remuneration Committee, and John will
join the Audit Committee and take on the role of Chair of the Remuneration
Committee.
Denise Cockrem, who has served on the ITM Board since July 2022, will step
down from the Board at the time of the AGM. We thank her for her invaluable
contributions over the past three years, and we wish her every success for the
future.
Looking ahead
Our strategy is clear; operationally, ITM is in great shape, and we are
financially in a healthy position.
Over the next year, we will continue to invest in our core technology,
enabling us to remain at the forefront of the industry. We will also introduce
more automation, particularly in stack assembly, which will enhance our
production capabilities. After our year-end, we announced the launch of
Hydropulse in June 2025, tailored for industrial users with dependable
hydrogen needs, which will build, own, and operate decentralised green
hydrogen production plants using ITM's modular NEPTUNE technology.
In closing, I would like to express my gratitude to our shareholders,
employees, and customers for their ongoing support and confidence in our
business. I am confident that our colleagues will go above and beyond to
support our customers. By working together, we can continue to deliver against
our strategy and create sustainable long-term value for our shareholders.
Sir Roger Bone
Chair of the Board
CHIEF FINANCIAL OFFICER'S REVIEW
The prudent management of our invested capital base is at the core of our
daily operations and strategic decision-making. By embedding financial
discipline into every facet of our business, we ensure optimal resource
allocation, and every investment decision is carefully evaluated for its
long-term viability, aligning with our strategic priorities while maintaining
flexibility to adapt to evolving market conditions.
Our long-term commitment to financial stewardship drives efficiency and
strengthens our resilience, enabling us to seize opportunities while
safeguarding the integrity of our capital base. Through informed
decision-making and rigorous financial oversight, we uphold the principles of
accountability and value creation in every step we take.
This culture is no more evident than in our year-end cash position of £207m,
which is significantly above the original guidance of between £160m and
£175m. We were also cash generative in the second half of the year, with cash
increasing from £203m to £207m.
Key financials
A summary of the Group's key financials is set out in the table below:
Year to 30 April 2025 2024 2023
£m £m £m
Revenue 26.0 16.5 5.2
Gross loss (23.7) (16.7) (79.1)
Pre-tax loss (45.4) (27.1) (101.2)
Adjusted EBITDA(1) (33.0) (30.4) (94.2)
Property, plant and equipment plus intangible assets 46.2 39.6 31.9
Inventory (raw materials) 7.9 10.3 18.3
Inventory work in progress (WIP) 48.1 60.2 40.5
Cash 207.0 230.3 282.6
Net assets 224.3 268.7 295.5
(1. ) Adjusted EBITDA is a non-statutory measure. The
calculation method is shown in Note 4
Non-financial key performance indicators (KPIs)
We use certain non-financial performance indicators to consider our
performance over time. These include QHSE metrics, order intake, megawatts
contracted, stacks built, project milestones achieved, and employee metrics.
During the year, MW in work-in-progress (WIP) increased to 410MW (FY24:
284MW). Revenue was recognised against 40MW of deliveries (FY24: 12MW). The
Board also regularly reviews other non-financial performance criteria,
including production throughput, testing and validation performance and labour
utilisation. As the Group matures further, we will continue to refresh our
non-financial KPIs to reflect the evolved business.
Financial performance
The principal ways in which we generate revenue are through product sales,
maintenance contracts, and consulting contracts (FEED and feasibility
studies). In the future, Hydropulse is expected to add additional high-quality
revenue.
Revenue
Revenue for the year was £26.0m (FY24: £16.5m). The majority of this
revenue, £22.5m (FY24: £8.2m), was generated from product sales, which
increased almost threefold. Consulting contracts delivered £1.8m (FY24:
£5.0m), primarily due to a government contract related to our stack platform
development, the majority of which was received in FY24. In addition, we
generated £0.9m (FY24: £1.5m) from maintenance contracts, and a small amount
of other income.
Gross margin
The gross loss was £23.7m (FY24: £16.7m). This loss is due to under
absorption of factory costs of £9.6m, resulting from increased production
capacity and efficiency following the implementation of the prior year's
12-month plan, and wastage or inventory write-offs provisions as per our
policy of £13.2m
Staff costs and administrative expenses before exceptional items
Administrative costs reduced year on year to £21.2m (FY24: £22.6m). Across
the Company (including production), staff and employment costs increased from
£21.2m to £24.2m, reflecting the ongoing focus on improving our capabilities
and competencies. The capitalisation of direct staff costs increased from
£9.1m to £10.8m, deriving expensed staff costs of £13.4m (FY24: £12.1m).
The average number of full-time employees (FTEs) was 304.6, compared to 323.2
in FY24.
Consultancy and consumable costs fell by 13% to £2.2m (FY24: £2.5m) as we
focused activities and further controlled costs, whilst depreciation and
amortisation rose by 25% to £7.4m (FY24: £5.9m), reflecting our strategic
investment in capital projects.
We did not incur an impairment charge in FY25. The impairment charge in FY24
of £1.4m related to products where development costs had previously been
capitalised, and which were no longer offered as part of the streamlined
portfolio following the 12-month plan.
Government grants, which constitute claims against individual projects or
research and development (R&D) claims, totalled £3.4m (FY24: £1.2m),
with £3.3m receivable in relation to R&D tax reclaims (FY24: £0.8m).
Adjusted EBITDA(1)
The Group posted an adjusted EBITDA loss of £33.0m (FY24: £30.4m) for the
period. Adjusted EBITDA is a non-statutory measure and is detailed below.
2025 2024
£000 £000
Loss from operations (54,541) (38,011)
Add back:
Depreciation 4,927 4,008
Amortisation 2,454 1,921
(Gain) / loss on disposal of non-current assets (10) 126
Impairment - 1,417
Non-underlying share-based payment charge/(credit) 1,053 149
Exceptional costs 13,090 -
Adjusted EBITDA (33,027) (30,390)
(1) Adjusted EBITDA is a primary measure used across the business to provide a
consistent measure of trading performance. The adjustment to EBITDA removes
certain non-cash items, such as share-based payments, to provide a key metric
to the users of the financial statements as it represents a useful milestone
that is reflective of the performance of the business resulting from movements
in revenue, gross margin and the cash costs of the business. We have set out
below how we calculate adjusted EBITDA (see also Note 4 for more
information). Management uses Adjusted EBITDA as an alternative performance
measure (APM) as it allows better monitoring of the operations.
Notwithstanding, Management recognises the limitations of APMs as it may not
allow industry-wide comparison, and includes removing the effect of certain
annual charges such as share-based payments, identified above.
Loss before Tax
The loss from operations was £54.5m (FY24: £38.0m) and included the
exceptional item of £13.0m relating to the settlement of a commercial dispute
with Linde which had previously been disclosed as a contingent liability. The
loss from operations before exceptional items was £41.5m (FY24: £38.0m).
Net finance income of £9.2m (FY24: 11.6m) consisted of finance income of
£10.2m (FY24: 12.2m) and finance costs of £1.0m (FY24: £0.6m).
The loss before tax was £45.4m (FY24: £27.1m), and the basic and diluted
loss per share was 7.4p (FY24: 4.4p).
Capital expenditure
Capital expenditure totalled £12.8m in the period (FY24: £14.0m), with
£8.5m invested in capital projects (FY24: £12.0m), namely expansion and
improvements at our Sheffield facilities and machinery, and £4.3m (FY24:
£2.0m) in intangible assets primarily in respect of continued product
development.
Working capital
The working capital position (being net of inventory, receivables and
payables) improved by £34.3m in the year (FY24: £1.4m inflow), with
inventories and receivables decreasing by £14.4m and £7.9m respectively, as
well as an increase in payables of £12.1m.
Cash
Cash at the end of the year was £207m (FY24: £230m). This is testament to
our continued cost and capital discipline and a significant improvement on our
original guidance. Achieving a cashflow positive position in the second half
of the year demonstrates the focus we continue to have.
We have also continued to have tight control on receivables and upfront
payments resulting in an increase in deferred income of £12.4m to £64.2m
(FY24: £51.8m).
Financial position: positioned for the future
Current assets decreased to £283.8m (FY24: £329.5m), principally reflecting
a reduction in year-end cash of £23.3m, with year-end cash of £207m (FY24:
£230m), together with a £14.4m reduction in inventories to £56.0m (FY24:
£70.4m).
The level of inventories held as raw materials decreased to £7.9m (FY24:
£10.3m) as a result of increased throughput, and inventory held as
work-in-progress reduced by £12.0m to £48.1m (FY24: £60.2m).
Inventory provisions increased by £4.4m to £28.1m (FY24: £23.6m) in
accordance with our stock provisioning policy.
Trade and other receivables were £20.8m (FY24: £28.7m), reflecting the
effective management of credit control with customers and the timing of
invoicing upon the completion of contract milestones, which resulted in a
reduction of £12.6m in trade receivables. Partly offsetting this is an
increase of £3.2m in relation to the R&D tax credits. Trade and other
payables increased to £80.4m (FY24: £68.3m), driven by an increase of
£12.4m in deferred sales income, principally concerning the timings of
payments from customers on projects to be delivered.
Non-current assets increased to £58.1m (FY24: £52.3m), reflecting a £4.8m
rise in property, plant and equipment and a £1.8m increase in intangible
assets, partly offset by a £0.9m reduction of right-of-use assets.
Contract loss provisions relate to several factors, including acceleration
measures for previously delayed projects, additional on-site works, increased
energy and labour costs due to previously under-estimated stack testing times,
and future costings updated for inflation. Net contract loss provisions were
reduced by £7.6m, with £1.2m created and £7.6m either utilised or released
in the period. The total contract loss provision at the year-end stood at
£12.3m (FY24: £19.9m).
The warranty provision was increased by £0.4m in the period, with £0.3m
created during the year, £1.0m released but offset by £1.1m transferred from
contract loss provisions relating to project deliveries. The balance at period
end was £3.8m (FY24: £3.4m). This includes all projects that have been
commissioned and entered their warranty stage but excludes those that have not
yet been delivered. The warranty costs of projects not yet delivered are
presented as contract loss provisions.
Contingent liabilities
In the last financial year, the Group disclosed a contingent liability around
a commercial dispute. During the year, the Group concluded the commercial
dispute with Linde, leading to a payment of £13.0m to Linde, which is lower
than the Company's estimate of the loss at the time of the announcement of up
to £15m.
Outlook for FY26
As we enter the new financial year, we are well-positioned to drive growth and
deliver value. Our immediate priority is to successfully execute ongoing
projects while actively securing new opportunities to expand our customer
base, including the launch of our new Build, Own, and Operate company,
Hydropulse.
We remain committed to strategic investment in the business, preparing for the
anticipated scale-up as FIDs progress and contracts materialise. At the same
time, we will uphold our disciplined approach to cost management and capital
allocation, ensuring sustainable success and long-term resilience.
Our guidance for FY26 is as follows:
· Revenue expected to be between £35m and £40m: Our revenue is
expected to increase by almost 50% year-on-year, with the majority of the
revenue coming from contracted product sales.
· Adjusted EBITDA loss of £27m to £29m: We have gained control of
what we can control and are reducing our losses, although we continue to
deliver on loss-making projects which ITM were committed to prior to the
strategic shift in the Company in 2023. Already 60% of our contracted order
backlog is profitable and the share will grow further in this financial year.
· Cash at year end is expected to be between £170m and £175m:
CAPEX for the year is expected to be in the range of £10m to £15m, as we
continue to invest in R&D, product development and our manufacturing
capabilities. We anticipate working capital to increase by £10m to £15m.
With a strong contracted order backlog, a robust balance sheet, and a growing
share of profitable projects, ITM enters FY26 with confidence and momentum.
The strategic foundations we have built over the past two years are now
translating into tangible results, positioning us to capture the expanding
opportunities in the global hydrogen market.
Amy Grey
Chief Financial Officer
CONSOLIDATED INCOME STATEMENT AND OTHER COMPREHENSIVE INCOME
2025 2024
Note £000 £000 £000 £000
Revenue 3 26,040 16,509
Cost of sales (49,726) (33,173)
Gross loss (23,686) (16,664)
Administrative expenses (34,275) (22,575)
Other income - government grants 3 3,420 1,228
Loss from operations before exceptional items (41,451) (38,011)
Exceptional items (13,090) -
Loss from operations (54,541) (38,011)
Share of loss of associated companies (5) (291)
Finance income 10,168 12,219
Finance costs (985) (643)
Loss on disposal of joint venture - (331)
Loss before tax (45,363) (27,057)
Current tax (152) (167)
Loss for the year (45,515) (27,224)
OTHER TOTAL COMPREHENSIVE INCOME:
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences on foreign operations (46) 174
Net other total comprehensive (loss) / income (46) 174
Total comprehensive loss for the year (45,561) (27,050)
Basic and diluted loss per share 5 (7.4p) (4.4p)
CONSOLIDATED BALANCE SHEET
Note 2025 2024
£000 £000
NON-CURRENT ASSETS
Investment in associate 48 53
Intangible assets 11,997 10,174
Right of use assets 11,388 12,250
Property, plant and equipment 34,173 29,398
Financial asset at amortised cost 526 400
TOTAL NON-CURRENT ASSETS 58,132 52,275
CURRENT ASSETS
Inventories 7 56,009 70,417
Trade and other receivables 20,782 28,741
Cash and cash equivalents 207,041 230,348
TOTAL CURRENT ASSETS 283,832 329,506
CURRENT LIABILITIES
Trade and other payables (80,364) (68,290)
Provisions 6 (11,296) (10,095)
Lease liability (837) (678)
TOTAL CURRENT LIABILITIES (92,497) (79,063)
NET CURRENT ASSETS 191,335 250,443
NON-CURRENT LIABILITIES
Lease liability (11,494) (12,026)
Provisions 6 (13,718) (21,974)
TOTAL NON-CURRENT LIABILITIES (25,212) (34,000)
NET ASSETS 224,255 268,718
EQUITY
Called up share capital 8 30,869 30,849
Share premium account 542,833 542,735
Merger reserve (1,973) (1,973)
Foreign exchange reserve 300 346
Retained loss (347,774) (303,239)
TOTAL EQUITY 224,255 268,718
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Note Called up share capital Share premium account Foreign exchange reserve
£000 £000 Merger reserve £000 Retained loss Total equity
£000 £000 £000
At 1 May 2023 30,823 542,593 (1,973) 172 (276,107) 295,508
Transactions with owners
Issue of shares 26 142 - - - 168
Credit to equity for share-based payment - - - - 92 92
Total transactions with owners 26 142 - - 92 260
Loss for the year - - - - (27,224) (27,224)
Other comprehensive income - - - 174 - 174
Total comprehensive loss - - - 174 (27,224) (27,050)
At 1 May 2024 30,849 542,735 (1,973) 346 (303,239) 268,718
Transactions with owners
Issue of shares 20 98 - - - 118
Credit to equity for share-based payment - - - - 980 980
Total transactions with owners 20 98 - - 980 1,098
Loss for the year - - - - (45,515) (45,515)
Other comprehensive income - - - (46) - (46)
Total comprehensive loss - - - (46) (45,515) (45,561)
At 30 April 2025 30,869 542,833 (1,973) 300 (347,774) 224,255
CONSOLIDATED CASH FLOW STATEMENT
2025 2024
Note £000 £000
Net cash used in operating activities 9 (20,020) (50,581)
Investing activities
Proceeds on sale of joint venture - 1,483
Deposits paid (financial assets) (100) (496)
Purchases of property, plant and equipment (8,546) (11,967)
Proceeds on disposal of property, plant and equipment 130 19
Payments for intangible assets (4,277) (2,037)
Interest received 10,141 12,203
Net cash used in investing activities (2,652) (795)
Financing activities
Issue of ordinary share capital 118 167
Payment of lease liabilities (785) (1,058)
Net cash used in financing activities (667) (891)
Decrease in cash and cash equivalents (23,339) (52,267)
Cash and cash equivalents at the beginning of year 230,348 282,557
Effect of foreign exchange rate changes 32 58
Cash and cash equivalents at the end of year 207,041 230,348
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
ITM Power plc is a public company incorporated in England and Wales under the
Companies Act 2006. The registered office is at 2 Bessemer Park, Sheffield,
South Yorkshire S9 1DZ.
These financial statements are presented in Pounds Sterling, which is the
currency of the primary economic environment in which the Group operates.
The summary accounts set out above do not constitute statutory accounts as
defined by Section 434 of the UK Companies Act 2006. The summarised
consolidated balance sheet at 30 April 2025, the summarised consolidated
income statement and other comprehensive income, the summarised consolidated
statement of changes in equity and the summarised consolidated cash flow
statement for the year then ended have been extracted from the Group's 2025
statutory financial statements upon which the auditor's opinion is unqualified
and did not contain a statement under either sections 498(2) or 498(3) of the
Companies Act 2006. The audit report for the year ended 30 April 2024 did not
contain statements under sections 498(2) or 498(3) of the Companies Act 2006.
The statutory financial statements for the year ended 30 April 2024 have been
delivered to the Registrar of Companies. The 30 April 2025 accounts were
approved by the directors on 13 August 2025 but have not yet been delivered to
the Registrar of Companies.
2. MATERIAL ACCOUNTING POLICIES
Basis of accounting
The consolidated financial statements have been prepared in accordance with
UK-adopted international accounting standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
The financial statements have been prepared under the assumption that the
Group operates on a going concern basis and on the historical cost basis.
Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services at that time.
Going Concern
The Directors have prepared a cash flow forecast for the period from the
balance sheet date until 30 September 2026. This forecast indicates that the
Group would expect to remain cash positive without the requirement for further
fundraising based on delivering the existing pipeline.
By the end of the period analysed, the Group is forecast to retain significant
cash reserves. This should give the business sufficient funds to trade for the
going concern period if the business continues according to its medium-term
business plan.
The business continues in a cash outflow position, using funding generated
from previous fundraises. As such, this cash flow forecast was stress-tested,
both for a worst-case scenario of no receipts and inflationary pressures on
utilities and purchases. In all the scenarios tested, the business would
remain cash positive for the 12 months from the date of approval of these
financial statements.
The accounts have therefore been prepared on a going concern basis.
3. Revenue, OPERATING SEGMENTS AND INCOME FROM GOVERNMENT GRANTS
Disaggregated revenue recognised 2025 2024
£000 £000
Revenue from product sales recognised over time - 75
Revenue from product sales recognised at point in time 22,533 8,144
Consulting contracts recognised at point in time 1,755 5,040
Maintenance contracts recognised at point in time 900 1,498
Fuel sales 131 216
Other 721 1,536
Revenue in the Consolidated Income Statement 26,040 16,509
Grant income (claims made for projects) 85 401
Other government grants (R&D claims) 3,335 827
Other income - government grants 3,420 1,228
29,460 17,737
The "Other" category includes contractual revenues recognised at point in time
but not classified elsewhere as not involving the transfer of goods or the
completion of maintenance or consultancy services.
At 30 April 2025, the aggregate amount of the transaction price allocated to
remaining performance obligations of continuing build contracts was £141.8m
(2024: £79.7m). The Group expects to recognise 26% of this within one year,
with the remaining 74% expected after one year. This differs from our backlog
figure as the latter contains other types of revenue e.g. consultancy and
other contractual revenue.
Segment information
ITM Power plc is organised internally to report to the Group's Chief Operating
Decision Maker, the Chief Executive Officer, on the financial and operational
performance of the Group as a whole. The Group's Chief Operating Decision
Maker is ultimately responsible for Group-wide resource allocation decisions,
evaluating performance on a Group-wide basis and any elements within it on a
combination of information from the executives in charge of the Group and
Group financial information.
Management has previously identified three target markets for our products
(Power, Transport, and Industry). Revenue reporting looks at these three
sectors to assess the commerciality of those sales. However, decisions for
resourcing cannot be made by reference to these as segments. The Group
operates a single factory in the UK that builds units for use across all
sectors. It would be hard to assign overhead costs to particular product
segments as builds all occur in that one facility and can run concurrently.
Similarly, fixed assets and suppliers' balances cannot be assigned to the
production of one specific segment. For overhead costs and net asset
resources, therefore, decisions are taken on a Group basis.
An analysis of the Group's revenue, by major product (or customer group), is
as follows:
2025 2024
£000 £000
Power 1,911 253
Transport 1,401 2,764
Industry 20,379 7,275
Other 2,349 6,217
Revenue in the Consolidated Income Statement 26,040 16,509
The "Other" category contains consultancy values that cannot be allocated to a
single product group.
Geographical analysis
The United Kingdom is the Group's country of domicile but the Group also has
subsidiary companies in the United States, Germany and Australia. All
non-current tangible assets were domiciled in the United Kingdom (NBV:
£33.8m) or Germany (NBV: £0.4m). All intangible assets were domiciled in the
United Kingdom. Revenues have been generated as follows:
2025 2024
£000 £000
United Kingdom 1,627 5,900
Germany 21,306 6,028
Austria - 1,659
Rest of Europe 1,299 996
United States 131 216
Australia 5 1,710
Rest of World 1,672 -
26,040 16,509
Included in revenue are the following amounts, which each accounted for more
than 10% of total revenue:
2025 2024
£000 £000
Customer A Industry 10,753 n/a
Customer B Other <10% 4,490
Customer C Transport <10% 3,121
Customer D Industry 9,037 n/a
Customer E Industry n/a 1,659
4. Calculation of Adjusted EBITDA
In reporting EBITDA, Management uses the metric of adjusted EBITDA:
2025 2024
£000 £000
Loss from operations (54,541) (38,011)
Add back:
Depreciation 4,927 4,008
Amortisation 2,454 1,921
(Gain) / loss on disposal of non-current assets (10) 126
Impairment - 1,417
Non-underlying share-based payment charge/(credit) 1,053 149
Exceptional costs 13,090 -
(33,027) (30,390)
Management uses Adjusted EBITDA as an alternative performance measure (APM) as
it allows better monitoring of the operations. Notwithstanding, Management
recognises the limitations of APMs as it may not allow industrywide
comparison, and includes removing the effect of certain annual changes such as
share-based payments, identified above.
Loss from operations includes amounts receivable from a prior year R&D
claim that became receivable in the current year.
In the last financial year, the Group disclosed a contingent liability around
a commercial dispute. During the year, the Group reached the conclusion of the
commercial dispute with Linde, leading to a payment to Linde of £13.0m.
Whilst the details of the dispute remain confidential, the Directors are
satisfied that all historic claim risk is now settled. We have shown these
costs, together with related professional fees, as exceptional items in the
income statement. Exceptional costs are outside the scope of normal business
and have therefore been removed for the purposes of adjusted EBITDA.
5. LOSS PER SHARE
The calculation of the basic and diluted earnings per share is based on the
following data:
2025 2024
£000
£000
Loss for the purposes of basic and diluted loss per share being net loss (45,515) (27,224)
attributable to owners of the Company
Number of shares
Weighted average number of ordinary shares for the purposes of basic and 617,273,073 616,743,434
diluted earnings per share
Loss per share 7.4p 4.4p
The loss per ordinary share and diluted loss per share are equal because share
options are only included in the calculation of diluted earnings per share if
their issue would decrease the net profit per share. The number of potentially
dilutive shares not included in the calculation above due to being
anti-dilutive in the years presented was 12,271,234 (2024: 6,582,037).
6. Provisions
Leasehold property provision Warranty Provision Other provisions Share option provision Total
for contract losses provisions
£000 £000 £000 £000 £000 £000
Balance at 1 May 2023 (896) (3,854) (42,630) (5,326) (215) (52,921)
Provision created in the year (213) (344) (10,734) (4,524) (261) (16,076)
Use of the provision - - 27,695 - 71 27,766
Release in the year - 767 5,817 2,578 - 9,162
Balance at 30 April 2024 (1,109) (3,431) (19,852) (7,272) (405) (32,069)
Provision created in the year (66) (321) (1,194) (1,497) (37) (3,115)
Transfer between provisions - (1,139) 1,139 - - -
Use of the provision - 26 5,271 - 21 5,318
Release in the year - 1,020 2,339 1,493 - 4,852
Balance at 30 April 2025 (1,175) (3,845) (12,297) (7,276) (421) (25,014)
In the balance sheet:
Expected within 12 months - (107) (6,158) (4,610) (421) (11,296)
(current)
Expected after 12 months (1,175) (3,738) (6,139) (2,666) - (13,718)
(non-current)
The leasehold property provision represents management's best estimate for the
dilapidations work that may be required to return our leased buildings to the
landlords at the end of the lease term. In a prior year we recognised a
dilapidations provision for the present value of the cost of works quoted by
our Employer's Agent for stripping our current factory building back to the
original condition at handover from the landlords. The discounting will
continue to amortise over the remaining 11 years of the lease. Although we
have taken on the lease of the unit next door last year, no provision for
dilapidations has yet been recognised; this is due to work having yet to be
undertaken for the fit-out of the unit.
The warranty provision represents management's best estimate of the Group's
liability under warranties granted on products, based on knowledge of the
products and their components gained both through internal testing and
monitoring of equipment in the field. As with any product warranty, there is
an inherent uncertainty around the likelihood and timing of a fault occurring
that would trigger further work or part replacement. Warranties are usually
granted for a period of one year, although two-year warranties are the
standard within some jurisdictions.
The provision for contract losses is created when it becomes known that a
commercial contract has become onerous. The provision is based on best
estimates and information known at the time to ensure the expected losses are
recognised immediately through profit and loss. The effects of discounting on
non-current balances were not deemed to be material. The increase on the
provision in the current year is due to a number of factors including changes
of scope to projects, additional on-site engineering works, increased energy
and labour costs due to extended stack testing times and updating costs for
the effects of inflation since the original quote to the customer. The
increase in the year is allocated against two projects. This provision will be
used to offset the costs of the project as it reaches completion in future
periods. Contract loss provisions are recognised as greater than one year
based on the expected completion of the contract.
Provision is also made, in other provisions, at the point when project
forecasts suggest that the contractual clauses for liquidated damages might be
triggered for late delivery on contracts with customers. The release in the
year is attributable to renegotiations of contract terms. The provision also
represents management's best current estimate of monies that could be
refundable to grant bodies for non-completion of works.
The share option provision provides for both deferred bonus awards (before
share options are awarded) and Employer's NIC due on all share options as they
exercise.
7. INVENTORY
Inventories held 2025 2024
£000 £000
Raw materials 7,869 10,257
Work in progress 48,140 60,160
56,009 70,417
Included in work in progress is inventory that has yet to be assigned to a
specific contract. If not assigned to a specific contract, inventory is tested
for obsolescence and net realisable value (NRV) and a provision is created
against such non-contract stock where necessary.
In addition to the above inventory provisions, at the point that the work in
progress is assigned to a contract and it is loss-making, the work in progress
will be reduced to recoverable value, which will be offset by an equal and
opposite reduction in the contract loss provision.
The cost of inventories recognised as an expense through the income statement
was £37.7m (2024: £18.6m).
8. CALLED UP SHARE CAPITAL AND RESERVES
Accounting policy:
An equity instrument is any contract that evidences a residual interest in the
assets of the Group after deducting all of its liabilities. Equity instruments
issued by the Group are recorded at the proceeds received, net of direct issue
costs.
Called up, allotted and fully paid (ordinary shares of 5p each) Number of shares
£000
At 1 May 2024 616,979,323 30,849
Share options exercised 391,666 20
At 30 April 2025 617,370,989 30,869
Holders of ordinary shares have voting rights at General Meetings in
proportion with their shareholding.
The share premium account represents the amount paid in excess of the nominal
value when shares are issued.
The merger reserve arose on the acquisition of ITM Power (Research) Limited in
2004.
The foreign exchange reserve arises upon consolidation of the foreign
subsidiaries in the Group, and accounts for the difference created by
translation of the income statement at average rate compared with the year-end
rate used on the balance sheet as well as the effect of the change in exchange
rates on opening and closing balances.
The Group's other reserve is retained earnings which represents cumulative
profits or losses, net of any dividends paid and other adjustments.
9. notes to the cash flow statement
2025 2024
£000 £000
Loss from operations (54,541) (38,011)
Adjustments:
Depreciation 4,927 4,008
Share-based payment (through equity) 980 92
Net exchange difference (80) 176
(Gain)/ loss on disposal of non-current assets (10) 126
Impairment - 1,417
Amortisation 2,454 1,921
Operating cash flows before movements in working capital (46,270) (30,271)
Decrease/ (increase) in inventories 14,408 (11,577)
Decrease/ (increase) in receivables 7,808 (9,219)
Increase in payables 12,074 22,209
Decrease in provisions (7,121) (21,056)
Cash used in operations (19,101) (49,914)
Interest paid (919) (605)
Income taxes paid - (62)
Net cash used in operating activities (20,020) (50,581)
10. Events after the balance sheet date
There are no material events that have occurred after the balance sheet date.
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