ITM Power PLC (GB:ITM)
LSE:ITM
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ITM Power
(LSE:ITM)
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Rating:52Neutral
Price Target:
156.00 p
▲(18.63% Upside)
Action:ReiteratedDate:04/22/26
The score is held back primarily by weak profitability and negative operating/free cash flow despite a low-leverage balance sheet. Technicals are supportive with strong momentum, but overbought signals add near-term risk. Earnings call commentary is moderately positive due to reiterated growth guidance, improved gross loss and better backlog quality, though losses and cash-outflow timing risks remain. Valuation support is limited given the negative P/E and no stated dividend yield.
Positive Factors
Technology roadmap and product launches
A validated CHRONOS roadmap that targets substantial cost and efficiency gains is a durable competitive lever. If realized, ~40% cost reductions and higher power density would improve unit economics, expand addressable markets, and materially support future margin uplift and scalable project economics over the next 2–6 months and beyond.
Negative Factors
Persistent unprofitability and negative margins
Consistent negative gross and operating margins indicate the business has not yet achieved a sustainable cost structure. Over the medium term this limits free cash flow conversion and requires either structural margin improvement, successful higher-margin product mix, or continued external financing to support growth and capex needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Technology roadmap and product launches
A validated CHRONOS roadmap that targets substantial cost and efficiency gains is a durable competitive lever. If realized, ~40% cost reductions and higher power density would improve unit economics, expand addressable markets, and materially support future margin uplift and scalable project economics over the next 2–6 months and beyond.
Read all positive factors
ITM Power (ITM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.07B
Dividend YieldN/A
Average Volume (3M)3.09M
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth23.20%
EPS Growth18.73%
CountryUK
Employees359
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.02
Shares Outstanding689,365,230
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
£84.50Price Target Upside-35.74% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.04
Revenue Forecast (FY)£42.29M
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
131.50
Price Trends
66.97
Positive
66.66
Positive
69.99
Positive
Market Momentum
10.53
Negative
90.55
Negative
89.12
Negative
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 131.5 is above the 20-day moving average (MA) of 72.76, above the 50-day MA of 66.97, and above the 200-day MA of 69.99, indicating a bullish trend. The MACD of 10.53 indicates Negative momentum. The RSI at 90.55 is Negative, neither overbought nor oversold. The STOCH value of 89.12 is Negative, 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 | £850.09M | 15.43 | 33.12% | 1.01% | 24.42% | 103.25% | |
71 Outperform | £6.93B | 20.02 | 24.91% | 1.29% | 4.25% | 29.89% | |
67 Neutral | £2.68B | 23.57 | 20.10% | 2.04% | 3.03% | 13.76% | |
64 Neutral | £7.72B | 29.74 | 13.42% | 1.26% | 2.35% | -20.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £592.91M | 28.89 | 6.66% | 4.87% | -9.46% | -57.37% | |
52 Neutral | £1.07B | -8.61 | -14.17% | ― | 23.20% | 18.73% |
* Industrials Sector Average
GB:ITM
ITM Power
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389.10%
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ITM Power Corporate Events
Other
ITM Power Executives Increase Holdings Through Monthly Share Incentive Plan
Neutral
Apr 20, 2026
ITM Power has reported routine share purchases by CEO Dennis Schulz and Chief Technology Officer Simon Bourne under the company’s Buy As You Earn Share Incentive Plan for April 2026. Under the plan, employees can acquire up to £150 of s...
Business Operations and StrategyDelistings and Listing Changes
ITM Power Seeks Block Listing to Cover Long-Term Incentive Share Awards
Neutral
Apr 17, 2026
ITM Power has applied for a block listing of 4,646,346 new ordinary shares on AIM to satisfy future exercises of share options and vested awards under its 2020 Long Term Incentive Plan. The new shares, expected to be admitted to trading on 21 Apri...
Business Operations and StrategyExecutive/Board Changes
ITM Power Grants LTIP Awards and One-Off CEO Share Option to Cement Turnaround
Positive
Apr 17, 2026
ITM Power has granted annual awards under its Long Term Incentive Plan, issuing nominal-cost share options to key executives and employees for the 2024/25 financial year after a delay linked to an extended market closed period. CEO Dennis Schulz, ...
Business Operations and Strategy
ITM Power joins Rheinmetall in defence-focused synthetic fuel push
Positive
Apr 17, 2026
ITM Power has entered a strategic collaboration with German defence technology group Rheinmetall to support the latter’s Giga PtX initiative, which aims to build a Europe-wide network of decentralised synthetic fuel plants for NATO forces. T...
Business Operations and StrategyExecutive/Board Changes
ITM Power Grants Deferred Bonus Share Awards to Senior Executives
Neutral
Apr 13, 2026
ITM Power has granted awards over ordinary shares to certain employees under its Deferred Annual Bonus Plan, structured as nominal cost options at an exercise price of £0.05 per share and calculated using a market price of 71.375 pence. The a...
Business Operations and StrategyDelistings and Listing Changes
ITM Power Seeks Block Listing to Cover Deferred Bonus Share Awards
Neutral
Apr 13, 2026
ITM Power has applied for a block listing of 368,836 new ordinary shares on London’s AIM market, reserving them to satisfy future exercises of share options and vested awards under its Deferred Bonus Plan. The new shares, which will rank par...
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 ...
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.