ITM Power PLC (GB:ITM)
LSE:ITM
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ITM Power
(LSE:ITM)
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Rating:44Neutral
Price Target:
69.00 p
▼(-3.29% Downside)
Action:ReiteratedDate:02/02/26
The score is held down primarily by weak financial performance (persistent losses and negative operating/free cash flow) and a bearish technical trend with the price below major moving averages. These are partially offset by earnings-call evidence of operational progress (record H1 revenue, improving backlog quality, reiterated growth guidance) and a low-leverage balance sheet, but near-term profitability and cash timing risks remain significant.
Positive Factors
Order Backlog Quality & Scale
A sizeable contracted backlog (£152m) with 71% profitable contracts materially improves revenue visibility and future gross margins. Higher-quality backlog reduces delivery risk, supports multi-period revenue conversion, and underpins scalable commercial growth as the firm executes large projects.
Negative Factors
Persistent Losses and Negative Margins
Consistent negative gross, EBITDA and net margins mean the business is not yet self-sustaining; sustained losses erode equity, limit internal funding for capex or R&D, and require ongoing external capital or disciplined cash management to reach stable profitability as scaling proceeds.
Read all positive and negative factors
Positive Factors
Negative Factors
Order Backlog Quality & Scale
A sizeable contracted backlog (£152m) with 71% profitable contracts materially improves revenue visibility and future gross margins. Higher-quality backlog reduces delivery risk, supports multi-period revenue conversion, and underpins scalable commercial growth as the firm executes large projects.
Read all positive factors
ITM Power (ITM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£440.49M
Dividend YieldN/A
Average Volume (3M)3.09M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth57.73%
EPS Growth-67.12%
CountryUK
Employees359
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.02
Shares Outstanding617,371,000
10 Day Avg. Volume4,507,181
30 Day Avg. Volume3,093,500
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.85
Price to Sales (P/S)7.31
P/FCF Ratio-5.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£82.00Price Target Upside14.93% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.05
Revenue Forecast (FY)£42.82M
ITM Power Business Overview & Revenue Model
Company Description
ITM Power Plc designs, manufactures, and sells hydrogen energy systems for energy storage, transportation, and industrial sectors in the United Kingdom, Germany, rest of Europe, and the United States. It offers HGas for power-to-gas, clean fuel, a...
How the Company Makes Money
ITM primarily makes money by selling PEM electrolyser products and related systems to customers building green-hydrogen production facilities. Its key revenue stream is product revenue from manufacturing and delivering electrolyser stacks, modules...
ITM Power Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational and commercial progress: record H1 revenue, improved gross loss, strengthening backlog quality, successful product launches (ALPHA 50) and major project deliveries (Lingen), plus significant manufacturing automation and a promising CHRONOS technology roadmap. At the same time, the company remains loss-making, with material legacy unprofitable contracts, timing uncertainty around customer FIDs and H2 cash outflows. Management emphasized disciplined cash and conservative guidance. Overall the positives — strong demand, execution on large projects, manufacturing scale-up, and improving backlog quality — outweigh the negatives, but profitability and certain timing risks remain.Positive Updates
Record Half-Year Revenue
Revenue of GBP 18.0m for H1 FY26 — the highest 6-month revenue in ITM's history, driven by equipment sales of GBP 15.5m and GBP 2.5m from engineering/spares/services.
Negative Updates
Ongoing Loss-Making Position
Company remains loss-making with gross loss of GBP 6.5m in H1 and FY26 EBITDA loss guidance of GBP 27m–29m; no guidance provided for achieving sustained EBITDA positivity beyond the current fiscal year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Half-Year Revenue
Revenue of GBP 18.0m for H1 FY26 — the highest 6-month revenue in ITM's history, driven by equipment sales of GBP 15.5m and GBP 2.5m from engineering/spares/services.
Read all positive updates
Company Guidance
For the year ending 30 April 2026 management reiterated revenue guidance of GBP 35–40m (implying ~400% growth vs two years and ~600% vs three years), EBITDA loss guidance of GBP 27–29m (≈GBP 4m improvement year‑on‑year) and year‑end cash of GBP 170–175m; this follows a record H1 to 31 Oct 2025 with revenue GBP 18.0m (equipment GBP 15.5m; engineering/spares/maintenance GBP 2.5m), gross loss improved to GBP 6.5m (from GBP 10.2m prior H1), cash GBP 197.8m (down GBP 9.2m over 12 months), capex GBP 6.9m and a contracted backlog of GBP 152m (71% profitable, up from 60% in Apr‑25) with the order book split ~85% completed‑contracts / ~15% percentage‑of‑completion (H1 included GBP 13.9m point‑in‑time legacy revenue and GBP 1.6m POC revenue); management expects increased H2 cash outflows driven by milestone timing, assumes no new contract signings in the cash guidance, and notes continued migration to overtime revenue recognition for POSEIDON/ALPHA/non‑standard NEPTUNEs.ITM Power Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
45
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.53M | 26.04M | 16.51M | 5.23M | 5.63M | 4.28M |
| Gross Profit | -27.99M | -23.69M | -16.66M | -83.01M | -34.32M | -14.74M |
| EBITDA | -21.43M | -37.00M | -31.68M | -96.05M | -42.93M | -24.85M |
| Net Income | -30.82M | -45.52M | -27.22M | -101.20M | -46.69M | -27.70M |
Balance Sheet | ||||||
| Total Assets | 340.20M | 341.96M | 381.78M | 402.32M | 458.17M | 229.07M |
| Cash, Cash Equivalents and Short-Term Investments | 197.85M | 207.04M | 230.35M | 283.33M | 366.18M | 176.08M |
| Total Debt | 14.73M | 12.33M | 12.70M | 7.81M | 7.15M | 6.49M |
| Total Liabilities | 129.61M | 117.71M | 113.06M | 106.81M | 63.21M | 31.62M |
| Stockholders Equity | 210.58M | 224.25M | 268.72M | 295.51M | 394.95M | 197.45M |
Cash Flow | ||||||
| Free Cash Flow | 191.00K | -32.94M | -65.08M | -83.11M | -49.01M | -32.01M |
| Operating Cash Flow | 9.79M | -20.02M | -50.58M | -67.99M | -37.85M | -20.06M |
| Investing Cash Flow | -14.49M | -2.65M | -795.00K | -10.90M | -15.38M | -12.49M |
| Financing Cash Flow | -588.00K | -667.00K | -891.00K | -95.00K | 243.13M | 168.72M |
ITM Power Technical Analysis
Positive
71.35
Price Trends
63.28
Positive
65.28
Positive
69.57
Positive
Market Momentum
0.91
Negative
66.45
Neutral
67.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITM, the sentiment is Positive. The current price of 71.35 is above the 20-day moving average (MA) of 63.94, above the 50-day MA of 63.28, and above the 200-day MA of 69.57, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 67.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ITM.
ITM Power Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £956.72M | 15.43 | 33.12% | 1.01% | 24.42% | 103.25% | |
71 Outperform | £6.83B | 20.02 | 24.91% | 1.29% | -0.32% | -3.96% | |
67 Neutral | £2.74B | 23.57 | 20.10% | 2.04% | 1.93% | -15.07% | |
64 Neutral | £7.89B | 29.74 | 13.42% | 1.26% | -1.97% | 40.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £590.15M | 28.89 | 8.04% | 4.87% | -7.30% | -59.71% | |
44 Neutral | £440.49M | -8.61 | -14.17% | ― | 57.73% | -67.12% |
* Industrials Sector Average
GB:ITM
ITM Power
71.35
44.50
165.74%
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ITM Power Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
ITM Power Wins £86.5m UK Backing for 1GW Chronos Electrolyser Line
Positive
Apr 9, 2026
ITM Power has secured a £40 million equity investment from state-owned Great British Energy and a planned £46.5 million grant from the Department for Energy Security and Net Zero to finance a new 1 GW automated manufacturing line for its...
Business Operations and Strategy
ITM Power Executives Increase Holdings via Buy-as-You-Earn Plan
Positive
Mar 18, 2026
ITM Power has reported routine share purchases and matching share awards to its chief executive Dennis Schulz and chief technology officer Simon Bourne under the company’s Buy as You Earn Share Incentive Plan. Under this scheme, employees ca...
Business Operations and StrategyProduct-Related Announcements
ITM Power Secures 20 MW Milford Haven Green Hydrogen Contract and 10-Year Service Deal
Positive
Mar 11, 2026
ITM Power has confirmed that the previously announced 20 MW Notice to Proceed relates to MorGen Energy’s West Wales Hydrogen project in Milford Haven, which has now reached final investment decision under the U.K. HAR1 funding framework. ITM...
Other
ITM Power Executives Add Shares Through Buy-as-You-Earn Scheme
Positive
Feb 18, 2026
ITM Power has disclosed routine share purchases and matching awards to chief executive Dennis Schulz and chief technology officer Simon Bourne under its Buy as You Earn share incentive plan for February 2026. Under the scheme, employees can invest...
Business Operations and StrategyFinancial Disclosures
ITM Power Lifts FY26 Revenue Guidance on Strong Project Progress
Positive
Feb 17, 2026
ITM Power has raised its revenue guidance for the 2026 financial year to a range of £40m to £43m, representing an 11% midpoint increase from its previous outlook of £35m to £40m. The uplift is attributed to strong project execu...
Business Operations and Strategy
ITM Power Secures Firm 20MW Green Hydrogen Contract After Client FID
Positive
Feb 16, 2026
ITM Power has received a Notice to Proceed for a 20MW green hydrogen project, confirming that the customer has taken a final investment decision and turning the previously announced award into a firm contract. The project is now added to ITM’...
Business Operations and StrategyFinancial Disclosures
ITM Power Narrows Losses, Expands Backlog and Product Line as Green Hydrogen Pipeline Grows
Positive
Jan 29, 2026
ITM Power reported another period of operational and financial progress for the six months to 31 October 2025, with revenue rising to £18m from £15.5m, a reduced adjusted EBITDA loss of £11.9m, and a still-strong cash balance of ...
Business Operations and StrategyFinancial Disclosures
ITM Power Sets Date for Interim Results and Investor Presentation
Neutral
Jan 20, 2026
ITM Power has announced that it will publish its interim results for the six months to 31 October 2025 on 29 January 2026 and will host a same-day presentation for analysts and investors led by its CEO, CFO and CTO. The event, accessible via the I...
Business Operations and StrategyFinancial Disclosures
ITM Power Sets Date for Interim Results and Investor Presentation
Positive
Jan 20, 2026
ITM Power has announced it will publish interim results for the six months ended 31 October 2025 on 29 January 2026, accompanied by a live presentation for analysts and investors led by CEO Dennis Schulz, CFO Amy Grey and CTO Simon Bourne. The com...
Other
ITM Power Executives Increase Holdings Through Buy-As-You-Earn Scheme
Positive
Jan 19, 2026
ITM Power has disclosed routine share dealings by its chief executive Dennis Schulz and chief technology officer Simon Bourne under the company’s Buy as You Earn Share Incentive Plan for January 2026. Each executive purchased 227 partnership...
Business Operations and StrategyExecutive/Board Changes
ITM Power Names Jürgen Nowicki as New Non-Executive Chair
Positive
Jan 16, 2026
ITM Power has confirmed that Jürgen Nowicki has formally taken over as non-executive chair of the board as of 15 January 2026, succeeding Sir Roger Bone, who has retired after leading the company through its evolution from a development-stage...
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.