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Invinity Energy Systems PLC (GB:IES)
LSE:IES
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Invinity Energy Systems (IES) AI Stock Analysis

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GB:IES

Invinity Energy Systems

(LSE:IES)

Rating:45Neutral
Price Target:
21.00p
▼(-6.67% Downside)
Invinity Energy Systems' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. Technical analysis provides a mixed outlook, with some short-term bullish signals. Valuation remains challenging due to negative earnings and lack of dividends. Despite strategic advancements, significant financial and operational challenges remain.

Invinity Energy Systems (IES) vs. iShares MSCI United Kingdom ETF (EWC)

Invinity Energy Systems Business Overview & Revenue Model

Company DescriptionInvinity Energy Systems plc manufactures and sells vanadium flow batteries (VFB) for energy storage solutions in the United Kingdom, Canada, the United States, Australia, and China. The company also develops electricity grids, as well as offers electric grid services. It provides batteries for energy storage for utilities and developers, commercial and industrial, and off-grid and microgrid applications. Invinity Energy Systems plc was incorporated in 2006 and is based in Saint Helier, the United Kingdom.
How the Company Makes MoneyInvinity Energy Systems generates revenue through the sale of its vanadium flow battery systems and related services. The company has a multi-faceted revenue model that includes direct sales of energy storage systems, installation services, and ongoing maintenance contracts. Additionally, IES benefits from strategic partnerships with energy developers and utilities, which can lead to larger projects and bulk orders. The increasing demand for renewable energy solutions and energy storage systems, driven by global decarbonization efforts, also contributes significantly to its earnings potential.

Invinity Energy Systems Earnings Call Summary

Earnings Call Date:Jun 25, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there are significant achievements such as the successful launch of ENDURIUM, cost reduction, and strong strategic partnerships, there are also notable challenges including revenue decline, supply chain risks, and a disconnect in market valuation. The company is optimistic about future opportunities, but current financial pressures and market perception pose challenges.
Q4-2024 Updates
Positive Updates
Successful Launch of ENDURIUM
Invinity successfully launched its ENDURIUM product, critical for advancing commercial success. The product was shipped to Gamesa, receiving positive feedback and performing well.
Cost Reduction Achievements
The company has managed to reduce the cost of ENDURIUM by 24% since its first launch and aims for a 70% reduction by 2030, enhancing competitiveness against lithium-ion batteries.
Strategic Partnerships and Market Opportunities
Invinity is engaged with strategic partners like Everdura and exploring new partnerships in regions such as India. The company is positioning itself to benefit from large-scale government programs that favor non-lithium storage technologies.
Strong PR and Industry Recognition
Invinity received positive media coverage, including a feature on ITV News and a leadership piece in a Scottish national newspaper, highlighting the growing importance of battery storage.
Revenue Forecasts and Project Pipeline
Projected revenue for 2025 is covered by four major projects, and there is a robust pipeline for 2026, including DOE programs and solicitations from the California Energy Commission.
Negative Updates
Revenue Decline and Gross Loss
Revenues were down by 75% year-on-year, attributed to the transition from VS3 to ENDURIUM. The gross loss increased from £3.3 million to £3.5 million, with warranty costs and overheads being significant contributors.
Challenges with Supply Chain and Geopolitical Risks
The company faces challenges due to geopolitical risks affecting the supply chain, particularly with tariffs and sourcing from China.
Negative Market Perception and Share Price
Invinity's market capitalization is close to its net cash position, reflecting a disconnect between the share price and the potential value of large LDES projects.
Operational Cash Burn
The company is experiencing a cash burn of around £2 million per month, with a need to manage OpEx and CapEx judiciously.
Company Guidance
In the recent investor call for Invinity Energy Systems plc's full-year results, CEO Jonathan Marren highlighted significant progress and strategic advancements. The company reported a successful fundraising of GBP 54 million net and launched its critical product, ENDURIUM, marking a pivotal transition from VS3. This transition saw revenues drop by three-quarters year-on-year, reflecting the shift and the 12-month sales cycle required for the new product. Despite a gross loss of GBP 3.5 million, the company improved its gross margin loss from -20% to -8%. Invinity's cash position was robust at GBP 35 million, with GBP 5 million ring-fenced for the LoDES project. The company is poised for future growth, with significant opportunities in the U.K.'s Cap and Floor regime and other global programs, emphasizing the importance of battery storage in achieving energy security and resilience. Marren underscored the company's commitment to cost reduction, achieving a 24% cost decrease in ENDURIUM since its launch, with a roadmap projecting a 70% reduction by 2030. The call also highlighted strategic partnerships, ongoing R&D investments, and a focus on profitable deals and increased deal size, indicating a promising outlook for Invinity's role in the growing battery storage market.

Invinity Energy Systems Financial Statement Overview

Summary
Invinity Energy Systems faces significant financial challenges with declining revenues and persistent losses. The negative margins and cash flow deficits signal operational and financial inefficiencies. While leverage is low, the company struggles to generate sufficient returns on its equity. Strategic improvements are necessary to enhance profitability and cash generation.
Income Statement
35
Negative
Invinity Energy Systems shows a declining revenue trend over the past two years, with a significant drop from 2022 to 2023. The gross profit margin is negative, indicating costs exceed revenues. Net profit margin is also negative, highlighting ongoing losses. The company reported negative EBIT and EBITDA margins, reflecting operational inefficiencies.
Balance Sheet
40
Negative
The company maintains a relatively low debt-to-equity ratio, indicating low leverage. However, the stockholders' equity has been decreasing, and the equity ratio indicates a high reliance on equity financing. The return on equity is negative, reflecting the company's inability to generate profits from its equity base.
Cash Flow
30
Negative
Free cash flow is negative, with a declining trend, indicating liquidity issues. The operating cash flow to net income ratio is unfavorable, highlighting the challenge in generating cash from operations. Despite positive financing cash flows, the company struggles with negative free cash flow growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.01M22.01M2.94M3.19M406.00K
Gross Profit-3.51M-3.35M17.00K-3.44M-967.00K
EBITDA-21.31M-20.97M-17.12M-20.60M-22.56M
Net Income-22.80M-23.18M-18.59M-21.04M-29.04M
Balance Sheet
Total Assets75.56M41.97M53.09M66.64M50.15M
Cash, Cash Equivalents and Short-Term Investments35.35M5.01M5.14M26.36M21.95M
Total Debt1.70M1.56M1.71M770.00K756.00K
Total Liabilities9.89M8.16M18.70M15.40M7.79M
Stockholders Equity65.67M33.81M34.39M51.24M42.35M
Cash Flow
Free Cash Flow-26.20M-20.40M-22.58M-23.71M-11.27M
Operating Cash Flow-24.89M-19.36M-21.87M-22.96M-10.92M
Investing Cash Flow-1.30M-984.00K-708.00K-751.00K-358.00K
Financing Cash Flow53.62M20.13M1.29M28.10M32.00M

Invinity Energy Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.50
Price Trends
50DMA
22.68
Negative
100DMA
19.20
Positive
200DMA
16.02
Positive
Market Momentum
MACD
-0.26
Negative
RSI
62.32
Neutral
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IES, the sentiment is Positive. The current price of 22.5 is above the 20-day moving average (MA) of 20.55, below the 50-day MA of 22.68, and above the 200-day MA of 16.02, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IES.

Invinity Energy Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.73B15.327.37%2.01%2.86%-14.57%
62
Neutral
£148.01M35.17
5.72%
51
Neutral
£532.94M9.047.13%10.82%3.36%
45
Neutral
£97.80M-45.83%-77.21%49.54%
41
Neutral
£17.35M-60.63%-5.94%-179.20%
£27.05M-73.07%
€27.91M-60.06%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:IES
Invinity Energy Systems
22.50
12.50
125.00%
GB:AMP
SIMEC Atlantis Energy
2.45
0.10
4.26%
GB:PHE
Powerhouse Energy
0.60
-0.61
-50.41%
GB:SEIT
SDCL Energy Efficiency Income Trust Plc
58.40
2.64
4.73%
GB:DORE
Downing Renewables & Infrastructure Trust Plc
102.00
28.47
38.72%
DE:9FV
Ecofin U.S. Renewables Infrastructure Trust Plc
0.18
-0.14
-43.75%

Invinity Energy Systems Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Invinity Energy Systems Secures £25 Million Investment to Boost Manufacturing and Market Expansion
Positive
Sep 9, 2025

Invinity Energy Systems announced a strategic investment of £25 million from Atri Energy Transition and Next Gen Mobility to expand its manufacturing capabilities and strengthen its supply chain. This partnership aims to enhance Invinity’s operations and commercial focus, particularly in the Indian market, and is expected to support ongoing product development and cost reduction efforts. The investment reflects confidence in Invinity’s prospects and positions the company to capitalize on the growing demand for energy storage solutions amid a global energy crisis.

The most recent analyst rating on (GB:IES) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Invinity Energy Systems Secures £25 Million Investment to Boost Manufacturing and Expand in India
Positive
Sep 9, 2025

Invinity Energy Systems has announced a strategic partnership with Atri Energy Transition and Next Gen Mobility, securing a £25 million investment to enhance its manufacturing capabilities and expand its market presence in India. This investment aims to strengthen Invinity’s supply chain, support product development, and improve working capital, positioning the company to capitalize on the growing demand for energy storage solutions amid a global energy crisis. The partnership will also allow Invinity to explore new commercial opportunities in India, potentially reducing costs and establishing local manufacturing operations.

The most recent analyst rating on (GB:IES) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Invinity Energy Systems Launches Endurium Enterprise for C&I Market
Positive
Sep 8, 2025

Invinity Energy Systems has launched the Endurium Enterprise, a new product aimed at commercial and industrial customers, during North America’s largest clean energy event, RE+. This product is designed to provide safe, cost-effective on-site energy storage, leveraging the company’s vanadium flow battery technology. The Endurium Enterprise is expected to enhance Invinity’s market position by meeting the growing demand for flexible and durable energy storage solutions, while offering benefits such as lower insurance premiums due to its inherent safety features.

The most recent analyst rating on (GB:IES) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Invinity Secures Major European Battery Order
Positive
Aug 1, 2025

Invinity Energy Systems has received a Notice to Proceed for a 10.8 MWh ENDURIUM battery system order from its Hungarian partner, STS Group. This project, part of a solar plus storage initiative in Hungary, marks the first commercial deployment of ENDURIUM in Europe and is expected to contribute significantly to Invinity’s 2025 revenues.

The most recent analyst rating on (GB:IES) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and StrategyPrivate Placements and FinancingProduct-Related Announcements
Invinity Energy Systems Advances LoDES Project with Planning Approval and £10m Grant
Positive
Aug 1, 2025

Invinity Energy Systems has received planning approval for its LoDES project in the South East of England, which will involve the construction of a 20.7 MWh Vanadium Flow Battery (VFB) system, with a £10 million grant confirmed from DESNZ. This project, expected to be Europe’s largest commercially operating VFB, will serve as a significant reference site for Invinity, enhancing its market positioning and showcasing its technology’s benefits over lithium-ion alternatives, particularly in terms of safety and community acceptance.

The most recent analyst rating on (GB:IES) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Invinity Energy Systems Expands into Chinese Market with Strategic Partnership
Positive
Jul 11, 2025

Invinity Energy Systems has entered into a strategic partnership with Guangxi United Energy Storage New Materials Technology Limited (UESNT) to expand into the Chinese market. This agreement allows UESNT to manufacture and sell Invinity’s ENDURIUM vanadium flow batteries in China, aiming to produce at least 1.9 GWh by 2030. The partnership is expected to enhance Invinity’s global competitive position by reducing production costs and securing a stable supply of vanadium electrolyte. This move aligns with Invinity’s strategy to reduce costs and expand its market presence through strategic partnerships, potentially benefiting stakeholders by improving supply chain efficiencies and increasing production volumes.

The most recent analyst rating on (GB:IES) stock is a Buy with a £65.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Invinity Energy Systems Successfully Concludes AGM with Key Resolutions Passed
Positive
Jul 10, 2025

Invinity Energy Systems announced that all resolutions were passed at their Annual General Meeting, including the election of new directors and the reappointment of BDO LLP as auditors. The AGM also marked the retirement of long-serving director Michael Farrow, whose contributions were acknowledged by the company. This successful AGM reflects Invinity’s stable governance and continued focus on strategic leadership, which could positively influence its market position and stakeholder confidence.

The most recent analyst rating on (GB:IES) stock is a Buy with a £40.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Invinity’s ENDURIUM Batteries Chosen for UK Energy Storage Bids
Positive
Jun 23, 2025

Invinity Energy Systems has announced that its ENDURIUM batteries have been selected by nine UK energy storage developers for bids in the UK’s LDES Cap & Floor Scheme. This selection highlights the confidence in Invinity’s technology and positions the company to potentially secure significant orders, which could impact its future trading positively. The scheme aims to support the expansion of long-duration energy storage assets and create manufacturing jobs in the UK. While the outcome of the bids is not guaranteed, the interest from developers underscores Invinity’s strong market positioning. Additionally, Invinity is actively pursuing commercial opportunities across North America, Europe, and Asia.

The most recent analyst rating on (GB:IES) stock is a Buy with a £65.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

Business Operations and Strategy
Invinity Energy Systems Sees Increase in Major Holdings by Artha Bharat
Positive
Jun 23, 2025

Invinity Energy Systems PLC has announced a change in its major holdings, with Artha Bharat Investment Managers IFSC LLP, through its Artha Global Opportunities Fund, increasing its voting rights in the company to 5.091% from a previous 4.251%. This acquisition of voting rights signifies a strengthened position for Artha Bharat in Invinity, potentially impacting the company’s strategic decisions and signaling confidence in its market trajectory.

The most recent analyst rating on (GB:IES) stock is a Buy with a £65.00 price target. To see the full list of analyst forecasts on Invinity Energy Systems stock, see the GB:IES Stock Forecast page.

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.Date of analysis: Sep 09, 2025