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ITM Power
(LSE:ITM)
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Rating:51Neutral
Price Target:
185.00 p
▲(40.68% Upside)
Action:Reiterated
Date:05/01/26
The score is held back primarily by weak financial performance (ongoing losses and negative operating/free cash flow) despite a low-leverage balance sheet. Technicals are supportive with strong price momentum versus moving averages, but overbought signals add near-term risk. The latest earnings call was moderately constructive on growth and improving backlog quality, though profitability and cash-outflow timing risks remain, and valuation support is limited due to negative earnings and no stated dividend yield.
Positive Factors
Backlog Growth & Quality
A GBP 152m fully contracted backlog with 71% profitable work provides multi‑period revenue visibility and reduces execution risk. Higher profitable share supports margin recovery as contracts convert, enabling steadier manufacturing throughput and predictable milestone cash inflows over coming quarters.
Negative Factors
Persistent Losses & Negative Cash Flow
Ongoing negative gross and EBITDA results mean the business still consumes cash and has not reached sustained profitability. Continued operating losses constrain reinvestment capacity and require disciplined cash management or external funding, keeping financial flexibility and margin durability in question over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog Growth & Quality
A GBP 152m fully contracted backlog with 71% profitable work provides multi‑period revenue visibility and reduces execution risk. Higher profitable share supports margin recovery as contracts convert, enabling steadier manufacturing throughput and predictable milestone cash inflows over coming quarters.
Read all positive factors
ITM Power (ITM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£795.12M
Dividend YieldN/A
Average Volume (3M)3.09M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth23.20%
EPS Growth18.73%
CountryUK
Employees306
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.05
Shares Outstanding691,405,600
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
£158.25Price Target Upside20.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.03
Revenue Forecast (FY)£55.95M
ITM Power Business Overview & Revenue Model
Company Description
ITM Power Plc, established in 2001 and headquartered in Sheffield, UK, is a specialist in hydrogen energy solutions. The company focuses on the development, production, and sale of sophisticated hydrogen systems, catering to energy storage, transp...
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
Negative
131.50
Price Trends
145.43
Negative
114.39
Negative
92.71
Positive
Market Momentum
-7.02
Positive
38.58
Neutral
15.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITM, the sentiment is Negative. The current price of 131.5 is above the 20-day moving average (MA) of 121.58, below the 50-day MA of 145.43, and above the 200-day MA of 92.71, indicating a neutral trend. The MACD of -7.02 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 15.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £1.26B | 33.04 | 33.12% | 1.01% | 24.42% | 103.25% | |
71 Outperform | £6.68B | 28.06 | 24.91% | 1.29% | 4.25% | 29.89% | |
67 Neutral | £2.36B | 20.79 | 20.10% | 2.04% | 3.03% | 13.76% | |
64 Neutral | £6.12B | 24.92 | 13.42% | 1.26% | 2.35% | -20.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £598.44M | 28.91 | 6.66% | 4.87% | -9.46% | -57.37% | |
51 Neutral | £795.12M | -22.55 | -14.17% | ― | 23.20% | 18.73% |
* Industrials Sector Average
GB:ITM
ITM Power
112.50
34.10
43.49%
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ITM Power Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
ITM Power Executives Increase Holdings Through Buy-as-You-Earn Plan
Positive
May 18, 2026
ITM Power has reported routine share purchases and matching share awards to its senior leadership under the company’s Buy as You Earn Share Incentive Plan. Under this scheme, employees can buy up to £150 of ordinary shares monthly, with...
Regulatory Filings and Compliance
ITM Power Confirms Updated Total Voting Rights and Share Capital
Neutral
Apr 30, 2026
ITM Power has reported that its total issued share capital stands at 691,405,563 ordinary shares of 5p each, all of which carry voting rights, with no shares held in treasury. This figure now represents the total number of voting rights in the com...
Regulatory Filings and Compliance
ITM Power CTO Exercises Share Options and Sells Shares to Cover Tax
Neutral
Apr 30, 2026
ITM Power disclosed that Chief Technology Officer Simon Bourne has exercised share options granted in 2018 and 2019 under the company’s share option plan, converting them into ordinary shares. He then sold a portion of these shares on AIM, p...
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...
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.