AFC Energy PLC (GB:AFC)
LSE:AFC
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AFC Energy
(LSE:AFC)
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Rating:56Neutral
Price Target:
17.50 p
▲(71.57% Upside)
Action:ReiteratedDate:05/01/26
The score is held back primarily by very weak financial performance (sharp revenue decline, large ongoing losses, and persistent cash burn), despite a low-debt balance sheet. Technicals are comparatively supportive with the stock trading above major moving averages and positive momentum. Earnings-call guidance improves the outlook via clearer product commercialization milestones and a stronger cash runway, but near-term execution and order-conversion risks remain significant.
Positive Factors
Low leverage / strong balance sheet
Very low leverage materially reduces refinancing and solvency risk during the commercialisation phase. With almost no debt versus sizable equity, AFC has structural financial flexibility to fund certification, pilots and phased scale‑up without urgent debt servicing pressure.
Negative Factors
Negligible current revenue
Annual revenue near zero shows the business remains pre‑commercial at scale; lacking recurring product sales undermines ability to cover fixed costs and validate unit economics. Durable profitability depends on turning product launches and pilots into sustained contracted revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low leverage materially reduces refinancing and solvency risk during the commercialisation phase. With almost no debt versus sizable equity, AFC has structural financial flexibility to fund certification, pilots and phased scale‑up without urgent debt servicing pressure.
Read all positive factors
AFC Energy (AFC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£169.57M
Dividend YieldN/A
Average Volume (3M)5.32M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-96.88%
EPS Growth-8.56%
CountryUK
Employees136
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.02
Shares Outstanding1,136,495,200
10 Day Avg. Volume5,283,526
30 Day Avg. Volume5,324,297
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)2.15
Price to Sales (P/S)626.55
P/FCF Ratio-6.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.02
Revenue Forecast (FY)£2.00M
AFC Energy Business Overview & Revenue Model
Company Description
AFC Energy plc engages in the development of alkaline fuel cell technology and allied equipment for the generation of clean energy in the United Kingdom. The company offers HydroX-Cell(L), an alkaline fuel cell module; HydroX-Cell(S); and AlkaMem,...
How the Company Makes Money
AFC Energy makes money primarily by selling and deploying hydrogen fuel cell power systems and associated equipment and services to customers that need clean, reliable temporary or off-grid electricity. Key revenue streams are: (1) product/system ...
AFC Energy Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call balanced clear strategic progress (product launches LC30/Hy-5, key partnerships with Volex, ICL, and an S&P 500 partner, reduced cash burn, successful fundraise and an improved cash runway) against continued near-term commercial and accounting challenges (widened reported loss, negligible current sales, one-off write-offs/provisions, certification and supply risks, and the need to build a firm order book by 2027). The tone was constructive and execution-focused, but the company still needs to convert pipeline interest into contracted orders and navigate certification/supply constraints to realize revenue growth.Positive Updates
Successful Fundraise and Strong Cash Position
Raised gross GBP 27.5m (net GBP 25.8m) during the year and finished with GBP 25.3m cash on the balance sheet, providing runway to deliver strategic initiatives for the next 18 months.
Negative Updates
Widening Reported Loss
Loss before tax increased to GBP 22.2m (FY25) from GBP 17.4m (FY24), a rise of GBP 4.8m (~27.6%). Management attributes much of the change to non-cash accounting items.
Read all updates
Q4-2025 Updates
Positive
Negative
Successful Fundraise and Strong Cash Position
Raised gross GBP 27.5m (net GBP 25.8m) during the year and finished with GBP 25.3m cash on the balance sheet, providing runway to deliver strategic initiatives for the next 18 months.
Read all positive updates
Company Guidance
Management gave detailed near‑term commercial and technical guidance: LC30 CE marking is targeted in August 2026 with sales from September and a committed build of 15 units through October 2026 (each unit takes ~85 hours to build and uses ~40–45 kg H2/day), Dunsfold hydrogen sales to begin April 2026 and Hy‑5 pilot commissioning with ICL import clearance is planned for November 2026, Hy‑5 prototype capacity at Dunsfold is ~1 unit/week (~50/yr) with the pilot site capacity ≈400 kg/day (Hy‑5 spec ~500 kg/day), medium‑term LC30 production is fuel‑cell limited to ~500 units/month (6,000/yr) equating to ~£600m revenue at £100k/unit (management referenced a ~$95k price point), Hy‑5 Fuel‑as‑a‑Service price shown at £10/kg, FY25 PBT loss £22.2m (non‑cash items £12.4m), R&D spend £11.7m (£5.2m capitalized) with ~£3.3m R&D tax credits expected, net fundraising ~£25.8m (gross £27.5m) with £25.3m cash on hand, and cash burn cut to £15.4m in FY25 (from £26.6m) with fixed costs kept <£1m/month.AFC Energy Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
68
Positive
Cash Flow
24
Negative
| Breakdown | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 125.00K | 4.00M | 227.00K | 582.00K | 592.80K |
| Gross Profit | -4.34M | -1.87M | -67.00K | -1.51M | -777.97K |
| EBITDA | -21.51M | -16.66M | -17.82M | -17.60M | -9.51M |
| Net Income | -22.20M | -17.42M | -17.48M | -16.45M | -9.38M |
Balance Sheet | |||||
| Total Assets | 42.45M | 36.57M | 36.24M | 50.68M | 63.14M |
| Cash, Cash Equivalents and Short-Term Investments | 25.32M | 15.37M | 27.37M | 40.22M | 55.99M |
| Total Debt | 179.00K | 664.00K | 1.12M | 996.00K | 906.13K |
| Total Liabilities | 6.05M | 6.30M | 5.15M | 4.94M | 3.26M |
| Stockholders Equity | 36.40M | 30.27M | 31.09M | 45.74M | 59.89M |
Cash Flow | |||||
| Free Cash Flow | -12.57M | -26.31M | -14.81M | -15.35M | -10.34M |
| Operating Cash Flow | -11.84M | -18.91M | -13.14M | -12.63M | -8.44M |
| Investing Cash Flow | -15.01M | -7.70M | -1.24M | -2.72M | -1.90M |
| Financing Cash Flow | 25.37M | 14.62M | 1.53M | 197.00K | 34.76M |
AFC Energy Technical Analysis
Positive
10.20
Price Trends
11.63
Positive
11.33
Positive
10.62
Positive
Market Momentum
0.32
Negative
69.46
Neutral
82.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AFC, the sentiment is Positive. The current price of 10.2 is below the 20-day moving average (MA) of 10.93, below the 50-day MA of 11.63, and below the 200-day MA of 10.62, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AFC.
AFC Energy Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | £66.91M | -5.44 | -42.08% | ― | -93.86% | -54.74% | |
56 Neutral | £169.57M | -1.74 | -76.88% | ― | -96.88% | -8.56% | |
55 Neutral | £1.40B | -3.71 | -39.26% | ― | -37.09% | -67.49% | |
46 Neutral | £40.15M | -2.66 | -42.23% | ― | ― | 42.60% |
* Industrials Sector Average
GB:AFC
AFC Energy
14.92
4.92
49.20%
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GB:IKA
Ilika plc
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0.00
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GB:GELN
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59.09%
AFC Energy Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
AFC Energy Updates Share Capital and Voting Rights Amid Hydrogen Growth Push
Positive
Apr 30, 2026
AFC Energy reported that as of 30 April 2026, its issued and outstanding share capital consists of 1,136,495,282 ordinary shares, each carrying voting rights, with no shares held in treasury. This updated share count provides the reference figure ...
Business Operations and StrategyRegulatory Filings and Compliance
AFC Energy Updates Block Listing for Employee Share Option Scheme
Neutral
Apr 27, 2026
AFC Energy has provided an update on its block listing for shares reserved under its employee share option scheme, confirming the status of securities available for future allocation. Between 25 October 2025 and 24 April 2026, 540,000 shares were ...
Business Operations and StrategyShareholder Meetings
AFC Energy Wins AGM Backing and Rebrands as H-Power
Positive
Apr 16, 2026
AFC Energy reported that all resolutions at its Annual General Meeting were passed, including the re-election of directors, approval of the financial statements and remuneration report, and authorities to allot shares and equity securities. Shareh...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
AFC Energy Awards Equity Bonuses to CEO and CFO, Updates Share Capital and Voting Rights
Neutral
Mar 23, 2026
AFC Energy has granted 2,163,562 ordinary shares to chief executive John Wilson and 824,767 shares to chief financial officer Karl Bostock as part of their FY25 bonus awards, representing a combined 0.26% of the company’s enlarged share capi...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
AFC Energy Sets AGM Vote on Rebrand to H-Power plc
Positive
Mar 23, 2026
AFC Energy Plc, a UK-headquartered AIM-listed specialist in ammonia-based low carbon hydrogen production and hydrogen-to-power solutions, is positioning its decentralised ammonia cracker and fuel cell technologies as cost-competitive alternatives ...
Business Operations and Strategy
AFC Energy targets private investors with London presentation as hydrogen rollout gathers pace
Positive
Mar 12, 2026
AFC Energy, a UK‑based AIM‑listed provider of ammonia‑based low carbon hydrogen production and hydrogen‑to‑power systems, develops decentralised ammonia cracker and modular fuel cell generator technologies. Its produc...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
AFC Energy accelerates hydrogen commercialisation after £27.5m fundraise
Positive
Feb 25, 2026
AFC Energy reported FY25 results highlighting a strategic reset towards commercial deployment of its fuel cell generators and ammonia crackers, backed by an oversubscribed £27.5m fundraising and increased RD spend despite a wider post-tax los...
Business Operations and StrategyRegulatory Filings and Compliance
AFC Energy Wins Approval to Sell Hydrogen from Pilot Ammonia Cracker
Positive
Feb 18, 2026
AFC Energy has secured a revision to its UK Environment Agency research and development permit, allowing it to export and sell low carbon hydrogen from its pilot ammonia cracking plant at Dunsfold. The approval confirms the company’s ability...
Business Operations and Strategy
AFC Energy strikes $2m Komatsu deal to develop ammonia‑fuelled engines
Positive
Feb 10, 2026
AFC Energy has signed a Joint Development Agreement with Japanese heavy equipment manufacturer Komatsu and its affiliate Industrial Power Alliance to integrate AFC’s proprietary ammonia cracking technology into a Komatsu industrial diesel en...
Business Operations and Strategy
AFC Energy strikes $2m Komatsu deal to develop ammonia‑fuelled engines
Positive
Feb 10, 2026
AFC Energy has signed a Joint Development Agreement with Japanese heavy equipment manufacturer Komatsu and its affiliate Industrial Power Alliance to integrate AFC’s proprietary ammonia cracking technology into a Komatsu industrial diesel en...
Business Operations and StrategyProduct-Related Announcements
AFC Energy to Showcase Hydrogen Power Systems to Retail Investors
Positive
Feb 9, 2026
AFC Energy is inviting retail investors to a live equipment demonstration at Dunsfold Aerodrome on 5 March 2026, showcasing its decentralised ammonia cracker and hydrogen fuel cell generator technologies. The event, hosted by the executive team, w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.