Preliminary Results

ITM Power PLC

19 October 2026

 

19 October 2026

ITM Power plc

Preliminary Results for the financial year to 30 April 2026 (FY26)

We are pleased to present the preliminary results for FY26, which show strong year-on-year progress, with record revenue, narrowing EBITDA losses, and a strong cash position.

Performance highlights

·    Revenue of £43.6m (FY25: £26.0m) representing a 68% growth year-on-year, and a 738% increase over three years. This is ahead of our upgraded FY26 guidance and significantly ahead of original guidance.

·    Adjusted EBITDA loss of £20.2m (FY25: £33.0m), significantly ahead of our original guidance and a 39% reduction year-on-year, resulting from strong project execution and product performance.

·    Cash at the year-end of £215.6m (FY25: £207.0m), at the top end of our upgraded guidance range. The cash balance was supported by an investment of £40.0m from Great British Energy (GBE). Taking into account this investment, the underlying cash position was at the top end of our original guidance range.

·    At £144.0m, contract backlog remained at a consistent level despite recognising record revenues in the financial year. Our contract backlog now consists of 83% profitable contracts, up from 60% in April 2025.

Strategic and commercial highlights

·    Secured an equity investment of £40.0m by Great British Energy (GBE) and awarded a grant of £46.5m, which will be drawn down as spend is incurred, from the UK Department for Energy Security and Net Zero (DESNZ), to enable a 1 GW Chronos manufacturing line in the UK

·    Launch of Hydropulse, our new business, which will build, own, and operate (BOO) green hydrogen production plants using ITM's technology, with a focus on serving industrial customers under long-term offtake agreements, supporting further improvements in our quality of earnings

·    Launch of Alpha 50, our highly competitive new 50 MW full-scope green hydrogen plant

·    Entered into a strategic collaboration with Rheinmetall relating to its Giga PtX project, which aims to establish a Europe-wide network of decentralised synthetic fuel production plants for the NATO armed forces

·    Neptune V contract with Westnetz

·    Selected by Uniper for 120 MW HAR2 project and FEED contract signed

·    Neptune II contract with a leading Spanish cement producer

·    Selected for a large-scale 300+ MW confidential project in the Asia-Pacific region

·    20 MW Poseidon contract with MorGen Energy for their HAR1 West Wales project, with subsequent FID confirmed, and a Long-Term Service Agreement (LTSA) signed

·    150 MW Neptune V capacity reservation by RWE

·    Selected for two grid balancing projects in Germany totalling 710 MW

·    12.5 MW Neptune V contract under HAR1 with Octopus Energy Generation

Post year-end momentum

·    RWE Get H2 Nukleus project: 100 MW Lingen 1, the world's largest PEM electrolyser plant and Europe's biggest green hydrogen plant of any technology, now operational.
Second 100 MW, Lingen 2, on track for completion in this financial year

·    Hydropulse signed Heads of Terms for a 150 MW green hydrogen project with a European oil refinery, with a joint Front End Engineering Design (FEED) study already underway ahead of Final Investment Decision (FID) targeted in 2027

·    Announced a strategic partnership with Protium for industrial-scale green hydrogen plants across the UK

·    Signed a Letter of Intent with Deutsche Bahn (DB) Systemtechnik to advance green energy innovation across transport and critical infrastructure

FY27 guidance: continuing our growth journey

·    Revenue between £50m and £60m, representing a 26% year-on-year growth and more than 900% over four years

·    Adjusted EBITDA loss between £17m and £20m, which remains a function of factory loading

·    Cash between £170m and £180m, in line with our strict cost and capital discipline and including our forecasted capex for the Chronos manufacturing line

*Adjusted EBITDA is a non-statutory measure. The calculation methodology is set out in Note 4.

CHIEF EXECUTIVE OFFICER'S STATEMENT

ITM Power has continued to strengthen its position as a leading supplier of electrolysers, underpinned by our proprietary stack technology, deep manufacturing expertise, and a product portfolio trusted by industrial partners.

In FY26, we delivered our highest-ever annual revenue of £43.6m, representing a year‑on‑year growth of 68% and a 738% increase over three years.

This progress has been supported by disciplined capital management and a £40m equity investment by Great British Energy (GBE) in April this year. Together with a £46.5m grant from the UK Department for Energy Security and Net Zero (DESNZ), this funding will support the establishment of manufacturing capability for our next-generation Chronos electrolyser stack technology. With a year‑end cash position of £215.6m, ITM enters its next phase of growth from a position of strength.

Technology leadership remains central to our strategy. Full ownership of core science, intellectual property and manufacturing processes enables rapid innovation, supply chain resilience and product differentiation. In October 2025, this leadership was further reinforced by the successful launch of Alpha 50, our scalable 50 MW full-scope hydrogen plant, which has generated strong customer engagement. It aligns with the market's appetite for standardised, industrial-scale hydrogen solutions from trusted technology providers.

To support our long‑term vision and accelerate growth, in 2025 we launched Hydropulse, our build, own, and operate (BOO) model. Since launch, the business has established offices in Berlin and Sheffield, and the team has been expanded to support project origination, development and execution.

The introduction of Hydropulse represents an important strategic evolution for our company, broadening our route to market and addressing key barriers to quicker green hydrogen adoption. By eliminating customers' capital expenditure and mitigating operational and technology risks, the model has resonated strongly with prospective customers.

In October 2026, we announced the signing of Heads of Terms for a large-scale green hydrogen project between Hydropulse and a European oil refinery. At 150 MW capacity and with a planned 10-year contract duration, this project demonstrates the scale and potential of our BOO model. If progressed through Final Investment Decision (FID), it would represent our largest commercial commitment to date, and establish a material long-term contracted revenue stream for the Group.

During the financial year, ITM announced a Neptune V contract with Westnetz GmbH, a Neptune II contract with a leading Spanish cement producer, a 20 MW Poseidon contract and a Long-Term Service Agreement (LTSA) with MorGen Energy for its HAR1 West Wales project, and a 12.5 MW Neptune V contract under HAR1 with Octopus Energy Generation.

Furthermore, we were selected by Uniper for its 120 MW Humber H2ub® project, by a confidential customer for a large-scale 300+ MW project in the Asia-Pacific region, by Stablegrid for two energy infrastructure projects in Germany totalling 710 MW of electrolyser capacity, and more.

These selections demonstrate growing recognition of ITM's capability to deliver at scale across a broad range of strategic end markets.

In addition, we entered into a capacity reservation agreement with RWE for 150 MW of Neptune V units, signed a Front-End Engineering Design (FEED) contract for a project shortlisted in HAR2, which is based on multiple Neptune V units, and secured two further engineering contracts. These included a Basic Design Engineering Package (BDEP) for an industrial project in Australia, and a FEED for a project in Canada to support hydrogen production for transport. Together, these contracts represent a potential further 70 MW of Neptune V and reinforce the breadth of our global opportunity pipeline.

Recently, we have entered into a strategic collaboration with Rheinmetall relating to its Giga PtX project, which aims to establish a Europe-wide network of decentralised synthetic fuel production plants for the NATO armed forces. The initial focus of this collaboration will be on the UK and Germany.

Project execution continued at pace across multiple flagship projects, including RWE's 200 MW Get H2 Nukleus project in Lingen, the 24 MW electrolyser at the Leuna Chemical Complex in Germany, and Shell's 100 MW REFHYNE2 project in Wesseling. We take pride in the fact that the first 100 MW plant in Lingen has been producing hydrogen and is now the world's largest PEM electrolyser plant and Europe's biggest green hydrogen plant of any technology. The second 100 MW plant, Lingen 2, is on track for completion in this financial year.

These high-profile reference plants further validate ITM's technology, strengthen customer confidence and reinforce its reputation as a trusted partner for the delivery of industrial-scale green hydrogen infrastructure.

With a strong order backlog, a scalable manufacturing platform, and a growing portfolio of strategic reference plants, ITM Power is entering its next phase of growth with strong momentum.

The market for green hydrogen

The conflicts in Ukraine and the Middle East have once again highlighted the structural fragility of fossil‑fuel‑dependent energy systems. Economies reliant on imported oil and gas remain exposed to geopolitical shocks, price volatility and supply chain disruption, underscoring that energy security cannot be taken for granted. These risks are compounded by a global energy system already being reshaped by electrification, rapid growth in digital infrastructure, and ambitious decarbonisation targets.

The strategic rationale for accelerating the energy transition has become clearer and more urgent. Long‑term energy security depends on reducing reliance on imported fossil fuels and scaling clean, regional, and efficient energy systems. Renewable power has compelling advantages: it is homegrown, increasingly cost-competitive, rapidly deployable, and inherently resilient.

Electrolytic hydrogen offers important grid-balancing and energy-storage capabilities and extends decarbonisation into hard‑to‑abate sectors such as steel, chemicals, fertilisers, and synthetic fuels. With the market maturing, the role of hydrogen has evolved as well. Today, it sits at the intersection of energy, industry, and defence.

Europe remains the most attractive market for green hydrogen, driven by its structural dependence on imported fossil fuels and the resulting energy security challenges. The region's ambitions are supported by robust policy frameworks and large‑scale infrastructure investments. EU initiatives such as the Industrial Accelerator Act are designed to stimulate demand through low‑carbon and "Made in Europe" requirements across strategic industries, while coordinated measures such as carbon pricing and Contracts for Difference aim to close the cost gap with fossil-based fuels. Together, these policies position green hydrogen not only as a decarbonisation solution, but also as a pillar of industrial sovereignty, competitiveness, and long‑term economic growth.

The UK Government has made green hydrogen a central pillar of its industrial and energy security strategy. The Hydrogen Allocation Rounds (HAR) provide long‑term revenue support designed to accelerate early‑stage projects, attract private capital and build a domestic hydrogen market at scale. ITM is operating at the heart of the supply chain critical to the delivery of these HAR‑backed projects. The UK Government investment and grant ITM received earlier in the year not only strengthened our balance sheet and manufacturing expansion, but also reinforced our strategic relevance to national energy objectives.

Also outside of Europe, major economies continue to advance hydrogen deployment. Over the past year, Japan has moved from vision to execution in its long‑term hydrogen strategy, sharpening its focus on cost reduction, demand creation and supply chain resilience. The government reaffirmed funding commitments and subsidy mechanisms, including Contracts for Difference.

South Korea continues to position itself as a demand‑led hydrogen market, with recent progress centred on market frameworks rather than large‑scale domestic production. Policy support remains strong, with hydrogen embedded as a strategic industry under national tax incentives and increasing emphasis placed on hard‑to‑abate sectors such as steel and chemicals.

In Australia, the government rolled out major policy support via the Hydrogen Production Tax Incentive, updated its National Hydrogen Strategy, and expanded funding under the "Future Made in Australia" agenda, reinforcing the country's ambition to become a leading producer and exporter of clean hydrogen.

Customer activity

Europe remains the clear focal point for green hydrogen deployment today, with projects advancing at scale. From refineries replacing fossil-derived hydrogen to energy companies converting renewable power into hydrogen to supply industry, we have evolved into a trusted partner for our customers.

Our cutting-edge technology and comprehensive product portfolio support a broad range of applications, spanning mobility and hard‑to‑abate industrial sectors, including distilleries and semiconductor manufacturing. As customers move beyond pilots and early studies, focus has shifted towards proven performance, system integration, and delivery capability. In this environment, operational data and experience matter. With multiple flagship projects delivered and operational, ITM offers customers verified performance, reliability, and the confidence for industrial deployment.

Strategic outlook

The outlook for green hydrogen remains compelling, with powerful structural growth drivers in place. While FIDs continue taking longer than anticipated, the underlying fundamentals have strengthened. Importantly, this period favours companies with the discipline to focus on execution, preserve capital, and build the capabilities required to lead as projects move into construction and operation.

ITM's strategy remains tightly focused on value creation: delivering best‑in‑class electrolysers, scaling operations efficiently with demand, and selectively expanding our global footprint to access the highest‑quality opportunities.

This positioning has been strongly validated by the UK Government's backing of ITM through a £40m strategic equity investment via GBE, alongside a £46.5m grant from DESNZ.

These funds will enable us to deploy an automated manufacturing line for our next-generation stack platform, Chronos. Offering higher energy efficiency and lower cost, Chronos will strengthen our competitive position, grow our market share, and accelerate the industrial adoption of green hydrogen. The new stack platform has been progressing through development and validation to plan.

With a strong balance sheet, disciplined execution, and a focus on the highest‑growth hydrogen markets, ITM remains well positioned to convert opportunity into value. We are confident in our strategy and committed to creating sustainable long‑term value for our shareholders, as the global energy system moves decisively from ambition to delivery.

Dennis Schulz, Amy Grey, and Simon Bourne will present to analysts and investors at 9:00 a.m. GMT.

The presentation will be via the Investor Meet Company platform. Questions can be submitted pre-event via the Investor Meet Company dashboard anytime and during the presentation. Analysts and investors can sign up to Investor Meet Company for free via:

https://www.investormeetcompany.com/itm-power-plc/register-investor.

Those who follow the Company on the Investor Meet Company platform will automatically be invited.

A recording will be made available on the Investor Relations section of the ITM website after the event.

For further information, please visit www.itm-power.com or contact:

ITM Power plc
Justin Scarborough, Head of Investor Relations	[phone]
Berenberg
Ciaran Walsh, Harry Nicholas	[phone]
J.P. Morgan Cazenove
Richard Perelman, Charles Oakes	[phone]

About ITM Power plc:

ITM Power designs and manufactures industrial-scale electrolysers for green hydrogen production. Its proprietary PEM technology, vertically integrated manufacturing, and in-house engineering capabilities enable it to supply standardised, high-performance hydrogen plants.

With a proven track record in large-scale projects, ITM Power helps leading industrial and energy companies achieve their decarbonisation goals. In addition to its equipment offering, the company provides reliable and cost-competitive hydrogen supply through its build, own and operate (BOO) model, Hydropulse.

Headquartered in the UK, ITM Power is listed on the London Stock Exchange AIM (LSE: ITM) and holds the Green Economy Mark, which recognises companies that generate over 50% of their revenues from green products and services.

STATEMENT FROM THE CHAIR OF THE BOARD

I was honoured to be appointed Chair of ITM Power in January 2026, at a defining moment for the Company and the global energy system. Green hydrogen is increasingly recognised as a critical enabler of energy security and decarbonisation, and ITM is exceptionally well positioned to capture this opportunity through its differentiated technology, strong engineering capability, and expanding manufacturing footprint.

I bring extensive experience across the global hydrogen and industrial gases sectors, most recently as CEO of Linde Engineering. This experience has reinforced my conviction that success in this industry is built on disciplined execution, operational excellence, scale, and trusted partnerships - all areas where ITM has developed significant strengths. Working closely with the Board and executive team, my focus is on accelerating the Company's commercial progress, supporting its next phase of growth, and delivering sustainable long‑term value for our shareholders.

I would like to thank my predecessor, Sir Roger Bone, for his outstanding leadership and contribution to ITM. He leaves the Company with a strengthened operational foundation and clear strategic direction, providing an excellent platform from which to build.

The macro picture

The past year has reinforced the strategic importance of a secure, resilient, and domestically sourced energy systems. Continued geopolitical tensions and volatility in global energy markets have highlighted the vulnerabilities associated with dependence on imported fossil fuels and concentrated supply chains. Energy security is increasingly viewed not simply as an economic consideration, but as a national priority.

Against this backdrop, the investment case for the energy transition has strengthened further. Renewable energy offers a structurally more resilient alternative to imported fossil fuels, reducing exposure to geopolitical disruption and supporting long‑term decarbonisation objectives. Countries and industries that accelerate investment in clean energy infrastructure will likely emerge more competitive, secure, and better positioned to navigate future market uncertainties.

Looking ahead, the opportunity to reshape energy systems has never been clearer. Electrification and renewable generation continue to expand, and technologies such as green hydrogen are extending the benefits of clean energy to industrial processes and hard‑to‑abate sectors. The transition away from fossil fuels is no longer being driven by climate ambition alone, but also by the pursuit of energy resilience, industrial growth, and long-term security.

Environmental, Social and Governance (ESG) objectives

We are dedicated to delivering robust ESG performance, driven by a commitment to upholding the highest ethical standards. Our practices are well aligned with shareholders' interests, and committed to setting the standard for how our sector manages the biggest ESG risks and opportunities.

UK Government strategic support

During the year, ITM benefitted from a strong endorsement of its strategic importance through the support of the UK Government, comprising a £40m equity investment by Great British Energy (GBE) and a £46.5m grant from the Department for Energy Security and Net Zero (DESNZ).

This support reflects confidence not only in our technology and execution capability but also in the importance of establishing sovereign, scalable electrolyser manufacturing as a foundational component of the UK's clean energy infrastructure.

We are delighted to welcome GBE as a new and significant shareholder, whose strategic mandate closely aligns with ITM's mission and growth ambitions. This investment reinforces our position as a natural partner for UK hydrogen projects and provides a strong platform for growth.

Together, these investments strengthen our ability to support the UK's hydrogen ambitions, enhance national energy security, and industrial competitiveness, and create long-term value for shareholders.

Looking ahead

ITM enters the year with a clear strategy, a stronger operational platform, and increasing validation of its role in the UK and global hydrogen economy. The business is well positioned, technologically and industrially, with a sharp focus on disciplined execution, scalability, and sustainable value creation.

Over the coming year, we will continue to focus on industrialising our technology and scaling our manufacturing capability. Investment in automation, next‑generation product platforms, and manufacturing efficiency remains central to our priorities, supporting improved delivery, cost competitiveness, and reliability for customers.

We will continue to strengthen strategic partnerships and increase commercial deployment across key markets where green hydrogen is expected to play an important role in decarbonisation and energy security.

In closing, I would like to thank our shareholders, customers, and employees for their continued support and commitment. The dedication, expertise, and determination of our people is among ITM's greatest strengths.

With a clear strategic direction, a stronger operating platform, and strong alignment with national and international energy priorities, I am confident that ITM is well placed to deliver sustainable, long‑term value.

CHIEF FINANCIAL OFFICER'S REVIEW

A strong culture of financial discipline underpins everything we do, guiding how we allocate capital, prioritise investment, and pursue growth opportunities across the Group. We are focused on investing in areas that strengthen our competitive position, enhance execution capability, and support long-term growth while maintaining the flexibility to respond to evolving market opportunities.

This disciplined approach is translating into tangible results. It supports operational efficiency, reinforces the resilience of our business model, and provides a strong foundation for sustainable growth. By combining prudent stewardship with targeted investment, we remain focused on delivering accountability and creating enduring value for stakeholders.

The progress achieved during the year is clear evidence of this approach in action. With record revenues of £43.6m, adjusted EBITDA losses reduced to £20.2m, and a very strong year-end cash position of £215.6m. Together, these outcomes reflect improving operational performance and increasing financial strength, positioning ITM to capitalise on the significant opportunities ahead from a position of confidence.

Key financials

A summary of the Group's key financials is set out in the table below:

Year to 30 April	2026 £m	2025 £m	2024 £m
Revenue	43.6	26.0	16.5
Gross loss	(6.1)	(23.7)	(16.7)
Pre-tax loss	(24.8)	(45.4)	(27.1)
Adjusted EBITDA1	(20.2)	(33.0)	(30.4)
Property, plant and equipment plus intangible assets	51.6	46.2	39.6
Inventory (raw materials)	25.8	7.9	10.3
Inventory work in progress (WIP)	39.9	48.1	60.2
Cash	215.6	207.0	230.3
Net assets	240.1	224.3	268.7

Non-financial key performance indicators (KPIs)

Alongside our financial results, we monitor a range of operational and non-financial indicators to assess performance and track progress. These measures include QHSE metrics, order intake, contracted megawatts, stack production volumes, project milestones achieved, and employee metrics. During the year, MW in work-in-progress (WIP) stood at 253 MW (FY25: 410 MW). Revenue was recognised against 153 MW of deliveries (FY25: 40 MW).

The Board also regularly reviews a broader set of operational measures including production throughput, testing and validation performance, and labour utilisation. As the Group continues to grow, we will refine our non-financial KPIs to ensure they remain aligned with our strategic priorities.

Financial performance

The principal ways we generate revenue and income are through product sales, maintenance contracts, and engineering contracts (including FEED and feasibility studies). In the future, Hydropulse is expected to add additional high-quality revenue.

Revenue

Revenue for the period was £43.6m (FY25: £26.0m). The majority of this revenue, £40.7m (FY25: £22.5m), was generated from product sales. Engineering contracts delivered £1.5m (FY25: £1.8m). In addition, we generated £1.4m (FY25: £0.9m) from maintenance contracts and a small amount of other income.

Gross margin

The gross loss was £6.1m (FY25: £23.7m), a year-on-year reduction of almost 75%. This loss is due to the under-absorption of factory costs of £7.5m, resulting from increased production capacity as well as manufacturing losses or inventory write-off provisions, as per our policy, of £5.0m.

Staff costs and administrative expenses

Administrative costs decreased year on year to £26.2m (FY25: £34.3m). Across the Company (including production), staff and employment costs increased from £24.2m to £25.2m, reflecting the ongoing focus on improving our capabilities and competencies. The capitalisation of direct staff costs increased from £10.8m to £11.2m, deriving expensed staff costs of £14.0m (FY25: £13.4m).

The average number of full-time employees (FTEs) was 301, compared to 312 in FY25.

Consultancy and consumable costs rose to £5.5m (FY25: £2.4m) primarily due to reduced absorption of costs, whilst depreciation and amortisation rose by 18% to £8.7m (FY25: £7.4m), reflecting our strategic investment in capital projects.

Government grants, which constitute claims against individual projects or research and development (R&D) claims, totalled £1.4m (FY25: £3.4m).

Adjusted EBITDA

The Group posted an adjusted EBITDA loss of £20.2m (FY25: £33.0m) for the period. Adjusted EBITDA is a non-statutory measure and is detailed in Note 4.

	2026 £000	2025 £000
Loss from operations	(30,985)	(54,541)
Add back:
Depreciation	5,841	4,927
Amortisation	2,873	2,454
Loss/(gain) on disposal of non-current assets	445	(10)
Impairment	-	-
Non-underlying share-based payment charge/(credit)	1,674	1,053
Exceptional costs	-	13,090
Adjusted EBITDA	(20,152)	(33,027)

Loss before tax

The loss from operations was £31.0m (FY25: £54.5m after exceptional costs, £41.5m before exceptional costs).

Net finance income was £6.2m (FY25: £9.2m) and consisted of finance income of £7.4m (FY25: £10.2m) and finance costs of £1.2m (FY25: £1.0m).

The loss before tax was £24.8m (FY25: £45.4m), and the basic and diluted loss per share was 4.0p (FY25: 7.4p).

Capital expenditure

Capital expenditure totalled £13.2m in the period (FY25: £12.8m), with £9.4m invested in capital projects (FY25: £8.5m), namely expansion and improvements at our Sheffield facilities and machinery, and £3.8m (FY25: £4.3m) in intangible assets primarily in respect of continued product development.

Working capital

The working capital position (being net of inventory, receivables and payables) increased by £2.9m in the year (FY25: £34.3m inflow), with inventories and receivables increasing by £9.7m and £4.8m respectively, along with an increase in payables of £11.6m.

Cash

Cash at the end of the year was £215.6m (FY25: £207m). Taking into account the £40.0m equity investment by GBE, the underlying cash position at period end was at the top end of our original guidance range.

We have also maintained tight control over receivables and upfront payments, and deferred income increased to £68.2m (FY25: £64.2m).

Financial position

Current assets increased to £307.0m (FY25: £283.8m), reflecting an increase in year-end cash of £8.6m, with year-end cash of £215.6m (FY25: £207.0m), together with a £9.7m increase in inventories to £65.7m (FY25: £56.0m) and an increase in trade and other receivables to £25.7m (FY25: £20.8m).

The level of inventories held as raw materials increased to £25.8m (FY25: £22.5m) as a result of increased throughput, and inventory held as work-in-progress increased by £6.4m to £39.9m (FY25: £33.5m).

Gross inventory provisions increased by £3.1m in accordance with our stock provisioning policy.

Trade and other receivables were £25.7m (FY25: £20.8m), primarily due to a £10.9m increase in prepayments, paid upfront as pro forma and stage payments to suppliers for long-lead items required on our build projects. Trade receivables were relatively flat over the period at £3.1m (FY25: £3.5m). R&D tax credits stood at £1.3m, a reduction of £3.2m, due to higher credits in the prior year from specific one-off claims. Trade and other payables increased to £92.0m (FY25: £80.4m), driven by an increase of £4.0m in deferred sales income to £68.2m (FY25: £64.2m).

Non-current assets increased to £64.7m (FY25: £58.1m), primarily reflecting a £4.6m rise in property, plant and equipment and a £1.0m increase in the right-of-use assets.

Contract loss provisions relate to several factors, including acceleration measures for previously delayed projects, additional on-site works, increased energy and labour costs due to previously underestimated stack testing times, and future costings updated for inflation. Net contract loss provisions decreased by £2.8m, with £3.4m created and £1.5m being utilised. Provisions released in the period amounted to £4.4m. The total contract loss provision at year-end stood at £9.5m (FY25: £12.3m).

The warranty provision remained consistent with previous years at £3.8m (FY25: £3.8m). This includes a transfer of £1.9m to other provisions. During the period, provisions created in the year amounted to £3.6m, with £1.7m either utilised or released. This includes all projects that have been commissioned and entered their warranty stage but excludes those that have not yet entered warranty.

Outlook for FY27

We are well placed to build on the progress achieved to date and accelerate the creation of long-term shareholder value. Our immediate priorities remain clear: delivering our existing projects successfully, converting our growing pipeline into new orders, broadening our customer base through equipment sales, and advancing Hydropulse, our BOO business, which provides an additional route to market and future value creation.

We will continue to invest strategically in the capabilities that strengthen our competitive advantage and prepare for the anticipated acceleration of projects reaching FID. At the same time, we remain committed to disciplined cost management and prudent capital allocation to support growth that is delivered on a financially sustainable basis.

Supported by a robust order backlog, a healthy balance sheet, and an increasing proportion of profitable projects, ITM enters the year with confidence and momentum. The strategic actions taken over the past three years are increasingly delivering commercial and financial progress, placing us in an excellent position to capitalise on the growing global hydrogen market and deliver sustainable long-term value for shareholders.

CONSOLIDATED INCOME STATEMENT AND OTHER COMPREHENSIVE INCOME

	Note	£000	2026 £000				£000		2025 £000
Revenue	3		43,647						26,040
Cost of sales			(49,743)						(49,726)
Gross loss			(6,096)						(23,686)
Administrative expenses			(26,246)						(34,275)
Other income - government grants	3		1,357						3,420
Loss from operations before exceptional items			(30,985)						(41,451)
Exceptional items			-						(13,090)
Loss from operations			(30,985)						(54,541)
Share of loss of associated companies			(4)						(5)
Finance income			7,387						10,168
Finance costs			(1,232)						(985)
Loss before tax			(24,834)						(45,363)
Current tax			(158)						(152)
Loss for the year			(24,992)						(45,515)
OTHER TOTAL COMPREHENSIVE INCOME:
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences on foreign operations		(172)					(46)
Net other total comprehensive (loss) / income			(172)						(46)
Total comprehensive loss for the year			(25,164)						(45,561)
Basic and diluted loss per share	5		(4.0p)						(7.4p)

CONSOLIDATED BALANCE SHEET

	Note		2026 £000		2025 £000
NON-CURRENT ASSETS
Investment in associate			44		48
Intangible assets			12,896		11,997
Right of use assets			12,437		11,388
Property, plant and equipment			38,738		34,173
Financial asset at amortised cost			577		526
TOTAL NON-CURRENT ASSETS			64,692		58,132
CURRENT ASSETS
Inventories	7		65,722		56,009
Trade and other receivables			25,651		20,782
Cash and cash equivalents			215,618		207,041
TOTAL CURRENT ASSETS			306,991		283,832
CURRENT LIABILITIES
Trade and other payables			(92,070)		(80,364)
Provisions	6		(19,280)		(11,296)
Lease liability			(1,114)		(837)
TOTAL CURRENT LIABILITIES			(112,464)		(92,497)
NET CURRENT ASSETS			194,527		191,335
NON-CURRENT LIABILITIES
Lease liability			(12,983)		(11,494)
Provisions	6		(6,136)		(13,718)
TOTAL NON-CURRENT LIABILITIES			(19,119)		(25,212)
NET ASSETS			240,100		224,255
EQUITY
Called up share capital	8		34,570		30,869
Share premium account			578,925		542,833
Merger reserve			(1,973)		(1,973)
Foreign exchange reserve			128		300
Retained loss			(371,550)		(347,774)
TOTAL EQUITY			240,100		224,255

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Note	Called up share capital £000	Share premium account £000	Merger reserve £000	Foreign exchange reserve £000	Retained loss £000	Total equity £000
At 1 May 2024		30,849	542,735	(1,973)	346	(303,239)	268,718
Transactions with owners
Issue of shares		20	98	-	-	-	118
Credit to equity for share-based payment		-	-	-	-	980	980
Total transactions with owners		20	98	-	-	980	1,098
Loss for the year		-	-	-	-	(45,515)	(45,515)
Other comprehensive income		-	-	-	(46)	-	(46)
Total comprehensive loss		-	-	-	(46)	(45,515)	(45,561)
At 1 May 2025		30,869	542,833	(1,973)	300	(347,774)	224,255
Transactions with owners
Issue of shares		3,701	36,092	-	-	-	39,793
Credit to equity for share-based payment		-	-	-	-	1,216	1,216
Total transactions with owners		3,701	36,092	-	-	1,216	41,009
Loss for the year		-	-	-	-	(24,992)	(24,992)
Other comprehensive income		-	-	-	(172)	-	(172)
Total comprehensive loss		-	-	-	(172)	(24,992)	(25,164)
At 30 April 2026		34,570	578,925	(1,973)	128	(371,550)	240,100

CONSOLIDATED CASH FLOW STATEMENT

	Note		2026 £000		2025 £000
Net cash used in operating activities	9		(23,990)		(20,020)
Investing activities
Deposits paid (financial assets)			-		(100)
Purchases of property, plant and equipment			(9,472)		(8,546)
Proceeds on disposal of property, plant and equipment			-		130
Payments for intangible assets			(3,772)		(4,277)
Interest received			7,358		10,141
Net cash used in investing activities			(5,886)		(2,652)
Financing activities
Issue of ordinary share capital			40,101		118
Fundraising costs			(856)		-
Payment of lease liabilities			(767)		(785)
Net cash used in financing activities			38,478		(667)
Decrease in cash and cash equivalents			8,602		(23,339)
Cash and cash equivalents at the beginning of year			207,041		230,348
Effect of foreign exchange rate changes			(25)		32
Cash and cash equivalents at the end of year			215,618		207,041

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.         GENERAL INFORMATION

ITM Power plc is a public company incorporated in England and Wales under the Companies Act 2006.

The registered office is at 2 Bessemer Park, Sheffield, South Yorkshire S9 1DZ. The nature of the operations and principal activities of the Company and its subsidiaries (together the "Group") are disclosed in the Strategic Report.

These financial statements are presented in Pounds Sterling, which is the currency of the primary economic environment in which the Group operates.

2.         MATERIAL ACCOUNTING POLICIES

Basis of accounting

The consolidated financial statements have been prepared in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.

The financial statements have been prepared under the assumption that the Group operates on a going concern basis and on the historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services at that time.

Going Concern

The Directors have prepared a cash flow forecast for the period from the balance sheet date until 31 October 2027. This forecast indicates that the Group would expect to remain cash positive without the requirement for further fundraising based on delivering the existing pipeline. By the end of the period analysed, the Group is forecast to retain significant cash reserves. This should give the business sufficient funds to trade for the going concern period if the business continues according to its medium-term business plan.

The business continues in a forecasted cash outflow position, using funding generated from previous fundraises. As such, this cash flow forecast was stress-tested, for a worst-case scenario of no customer receipts.

In the scenario tested, the business would remain cash positive for the 12 months from the date of approval of these financial statements.

The accounts have therefore been prepared on a going concern basis.

3.         Revenue, OPERATING SEGMENTS AND INCOME FROM GOVERNMENT GRANTS

Disaggregated revenue recognised		2026 £000			2025 £000
Revenue from product sales recognised over time		3,860			-
Revenue from product sales recognised at point in time		36,860			22,533
Engineering contracts recognised at point in time		1,452			1,755
Maintenance contracts recognised at point in time		1,253			900
Fuel sales		-			131
Other		222			721
Revenue in the Consolidated Income Statement		43,647			26,040
Grant income (claims made for projects)	338			85
Other government grants (R&D claims)	1,019			3,335
Other income - government grants		1,357			3,420
		45,004			29,460

The "Other" category includes contractual revenues recognised at point in time but not classified elsewhere as not involving the transfer of goods or the completion of maintenance or engineering consultancy services.

At 30 April 2026, the aggregate amount of the transaction price allocated to remaining performance obligations of continuing build contracts was £139.4m (2025: £141.8m). The Group expects to recognise 43% of this within one year, with the remaining 57% expected after one year. This differs from our backlog figure as the latter contains other types of revenue e.g. engineering consultancy and other contractual revenue.

Segment information

ITM Power plc is organised internally to report to the Group's Chief Operating Decision Maker, the Chief Executive Officer, on the financial and operational performance of the Group as a whole. The Group's Chief Operating Decision Maker is ultimately responsible for Group-wide resource allocation decisions, evaluating performance on a Group-wide basis and any elements within it on a combination of information from the executives in charge of the Group and Group financial information.

Management has previously identified three target markets for our products (Power, Transport, and Industry). Revenue reporting looks at these three sectors to assess the commerciality of those sales. However, decisions for resourcing cannot be made by reference to these as segments. The Group operates a single factory in the UK that builds units for use across all sectors. It would be hard to assign overhead costs to particular product segments as builds all occur in that one facility and can run concurrently. Similarly, fixed assets and suppliers' balances cannot be assigned to the production of one specific segment. For overhead costs and net asset resources, therefore, decisions are taken on a Group basis.

An analysis of the Group's revenue, by major product (or customer group), is as follows:

	2026 £000	2025 £000
Power	23,966	1,911
Transport	4,712	1,401
Industry	13,680	20,379
Other	1,289	2,349
Revenue in the Consolidated Income Statement	43,647	26,040

 The "Other" category contains engineering consultancy values that cannot be allocated to a single product group.

 Geographical analysis

The United Kingdom is the Group's country of domicile but the Group also has subsidiary companies in the United States, Germany and Australia. All non-current tangible assets were domiciled in the United Kingdom (NBV: £38.3m) or Germany (NBV: £0.4m). All intangible assets were domiciled in the United Kingdom. Revenues have been generated as follows:

	2026 £000	2025 £000
United Kingdom	2,496	1,627
Europe	41,020	22,605
Rest of World	131	1,808
	43,647	26,040

Included in revenue are the following amounts, which each accounted for more than 10% of total revenue:

		2026 £000	2025 £000
Customer A		25,579	20,838
Customer B		8,829	n/a

4.            Calculation of Adjusted EBITDA

In reporting EBITDA, Management uses the metric of adjusted EBITDA:

			2026 £000	2025 £000
Loss from operations			(30,985)	(54,541)
Add back:
Depreciation			5,841	4,927
Amortisation			2,873	2,454
Loss/(gain) on disposal of non-current assets			445	(10)
Non-underlying share-based payment charge			1,674	1,053
Exceptional costs			-	13,090
			(20,152)	(33,027)

Management uses Adjusted EBITDA as an alternative performance measure (APM) as it allows better monitoring of the operations. Notwithstanding, Management recognises the limitations of APMs as they may not allow industrywide comparison, and include removing the effect of certain annual changes such as share-based payments, identified above.

Loss from operations includes amounts receivable from a prior year R&D claim that became receivable in the current year.

In the last financial year, loss from operations includes amounts receivable from a prior year R&D claim that became receivable. The Group also settled a commercial dispute, leading to a payment to Linde of £13.0m.

These costs, together with related professional fees, were exceptional items in the income statement.

Exceptional costs are outside the scope of normal business and were therefore removed for the purposes of adjusted EBITDA.

5.         LOSS PER SHARE

The calculation of the basic and diluted earnings per share is based on the following data:

		2026 £000	2025 £000
Loss for the purposes of basic and diluted loss per share being net loss attributable to owners of the Company		(24,992)	(45,515)
Number of shares
Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share		617,370,989	617,273,073
Loss per share		4.0p	7.4p

The loss per ordinary share and diluted loss per share are equal because share options are only included in the calculation of diluted earnings per share if their issue would decrease the net profit per share. The number of potentially dilutive shares not included in the calculation above due to being anti-dilutive in the years presented was 88,996,802 (2025: 12,271,234).

6.         Provisions

	Leasehold property provision	Warranty	Provision for contract losses	Other provisions	Share option provision	Total provisions
	£000	£000	£000	£000	£000	£000
Balance at 1 May 2024	1,109	3,431	19,852	7,272	405	32,069
Provision created in the year	66	321	1,194	1,497	37	3,115
Transfer between provisions	-	1,139	(1,139)	-	-	-
Use of the provision	-	(26)	(5,271)	-	(21)	(5,318)
Release in the year	-	(1,020)	(2,339)	(1,493)	-	(4,852)
Balance at 30 April 2025	1,175	3,845	12,297	7,276	421	25,014
Provision created in the year	252	3,587	3,379	1,611	1,798	10,627
Transfer between provisions	-	(1,902)	(297)	1,991	-	(208)
Use of the provision	-	(774)	(1,484)	-	(125)	(2,383)
Release in the year	-	(956)	(4,412)	(2,085)	(181)	(7,634)
Balance at 30 April 2026	1,427	3,800	9,483	8,793	1,913	25,416
In the balance sheet:
Expected within 12 months (current)	-	1,057	7,517	8,793	1,913	19,280
Expected after 12 months (non-current)	1,427	2,743	1,966	-	-	6,136

The leasehold property provision

The leasehold property provision represents management's best estimate for the dilapidations work that may be required to return our leased buildings to the landlords at the end of the lease term. In a prior year we recognised a dilapidations provision for the present value of the cost of works quoted by our Employer's Agent for stripping our main factory building back to the original condition at handover from the landlords. The discounting will continue to amortise over the remaining 10 years of the lease. A similar provision has been recognised for Unit 3 Bessemer Park in the current year.

Warranty provision

Warranties provided by the Group to customers are limited to the replacement or remediation of defective goods during the warranty period.

The Group recognises a provision for the estimated costs to fulfil its warranty obligations in the same period in which the revenue is recognised for the related product.

The warranty provision is measured using management's best estimate of expected replacement costs and projected product failure rates.

A change in these assumptions may result in a significant increase, or decrease, to the warranty provision in future periods as additional information becomes available and actual failure rates or remediation costs differ from the Group's current expectations.

Product failure rates

The estimated product failure rates have been determined based on the Group's ongoing assessment of the performance of the Group's products and components observed through monitoring equipment in the field and in the Group's testing facilities. These estimates are reassessed at each reporting date and updated as additional information becomes available.

The assumptions and estimates regarding failure rates are subject to uncertainties due to the limited operational data that is available. The failure rates for current generation stacks have been estimated based on failure rates observed from older-generation stacks, adjusted for management's expectations of the impact of manufacturing and quality improvements on failure rates. These adjustments to failure rates have been estimated by management based on data observed from operational data, accelerated lifecycle laboratory testing, and engineering projections.

Failure rates during the anticipated operational life of each product have been estimated to reduce after the first year of operation based on the results of accelerated lifecycle laboratory testing. However, estimates of the long-term performance of the products are subject to uncertainty due to the limited amount of operational data.

Expected costs

The estimated costs required to remediate warranty claims have been determined taking into consideration the estimated costs of replacements, the estimated costs to transport and install replacements.

Estimation uncertainty

As described above the failure rate and associated costs of replacement are subject to estimation uncertainty, which may result in an increase or decrease in the provision. A sensitivity analysis has been performed to assess the impact of potential changes to key assumptions.

If there was a reduced impact of manufacturing and quality improvements on failure rates for current generation stacks, the provision would increase by up to £1.8m. No comparative has been provided as the previous year's provision related to older generation stacks.

If the failure rates did not reduce to the full extent of the estimate after the first year of operation, the provision would increase by £0.9m. No comparative has been provided as the previous year's provision related to older generation stacks.

Provision for contract losses

The Group recognises a provision for onerous contracts with customers when the current estimated costs to fulfil the contract exceeds the estimated revenues. The provision recorded in the financial statements of £9.5m is net of an £11.1m reallocation of the provision against any inventory balances held in respect of these projects, the gross provision is £20.6m.

Onerous contracts are identified through the ongoing monitoring of contract performance and forecast project outcomes. Where a contract is assessed as onerous, the Group recognises a provision equal to the unavoidable costs of meeting its obligations under the contract, to the extent that these exceed the expected economic benefits to be received. An onerous contract provision was made in FY23 to recognise expected losses on a number of contracts that had previously been entered into by the Group and, as at this date, these contracts were considered to be onerous. These provisions are released as revenue is recognised for the contracts. We expect that the majority of this provision will be released during FY27 as these projects complete, however these timescales are not within the Group's control.

The measurement of onerous contract provisions requires management to exercise judgement and make assumptions regarding the future performance of the underlying contract. Uncertainty in estimating the remaining costs to complete a contract arises due to project- specific risks, including the one-off nature of the projects which are typically multi-year, their geographic location and because the nature of arrangements being such that project completion timelines are not wholly within the control of the Group.

The key estimates used in assessing the remaining costs to fulfil a contract include: the number of labour hours, the cost of labour, the cost of goods and services provided by subcontractors, the standard costs of materials, the value of warranties provided, and estimates of the cost of resolving commercial disputes. All estimated costs reflect the current technology and production processes currently implemented in the business, and may change if underlying assumptions materially change. In addition to this, the Group has assessed the total revenues expected to be recoverable from the customer, including constraints for liquidated damages and stack replacements during execution.

The estimated costs to complete a contract are reviewed on an ongoing basis using detailed project forecasts and are subject to a governance process. This process includes monthly reviews of project cost forecasts prepared by project managers, ongoing engagement with customers to monitor project progress, regular reassessment of project risks and opportunities, and review and challenge by Group management. Independent specialist advice is obtained where considered appropriate, and the resulting estimates are subject to oversight and final review by the Audit Committee.

Due to the first-of-a-kind nature of certain contracts, and geographic locations of projects which can impact the time needed and costs to commission projects, significant judgement is required in estimating the unavoidable costs remaining to fulfil the Group's contractual obligations for each contract. Consequently, there is a range of possible outcomes associated with the measurement of the onerous contract provision. When events after the end of the reporting period occur that provide evidence of conditions that existed at the end of the reporting period they are treated as adjusting events and reflected in the provision.

In accordance with IAS 37, the provision is measured at the best estimate of the expenditure required to settle the present obligation at the reporting date. Where a range of possible outcomes exists, management determines the provision using a probability-weighted assessment of the expected obligation.

A change in these assumptions could result in a change to the onerous contract provision in future periods as additional information becomes available and actual project outcomes differ from current expectations.

A sensitivity analysis has been performed to assess the impact of changes in key assumptions. Of the total provision of £20.6m:

·    £3.7m relates to the standard costs of products for onerous contracts at the year-end. The standard cost of the products and number of products is reasonably certain. There is little estimation or judgement in determining the amount to provide for. For this reason, no sensitivity has been prepared for this part of the provision.

·    £8.1m relates to estimated component returns and estimated revenue constraints for performance liquidated damages for projects that are expected to complete in the next financial year, and additional costs to complete, including provisions related to labour and expenses to finalise commissioning a number of projects. Given the uncertainty associated with these costs, a reasonable change in this estimate is between a 2100 basis points decrease (£1.8m) and a 2000 basis points increase (£1.6m) in the onerous contract provision.

·    £8.8m relates to:

·    the estimated warranty costs for projects expected to be completed in the following financial year which have not yet entered the warranty period. The impact If the failure rates did not reduce to the full extent of the estimate after the first year of operation, the provision would increase the value of the provision by £0.8m.

·    provisions for a number of contracts for risks that may materialise. Some of these projects are expected to complete in the calendar year ending 2027 or later. Given the uncertainty of the completion date of these projects, coupled with these being first-of-a-kind projects and in differing geographic locations, there is a greater risk the estimates for these costs may vary. A reasonable change in this estimate is between a 1000 basis points decrease (£0.5m) and a 4400 basis points increase (£2.4m) in the onerous contract provision.

Based on the above sensitivity analysis, management consider it likely that the gross provision recorded of £20.6m will be between £25.5m and £17.6m, however given the inherent uncertainty in estimating the remaining costs to complete contracts, costs could fall outside of this range. The Group continues to monitor the assumptions underpinning the onerous contract provision and revises the provision as appropriate to reflect the current best estimate of the expenditure required to settle the obligation. The provision is expected to be utilised over the remaining term of the customer contracts, which is expected to be between 1 and 3 years.

Other provisions

Provision is also made, in other provisions, at the point when project forecasts suggest that the contractual clauses for liquidated damages might be triggered for late delivery on contracts with customers. The provision also represents management's best current estimate of monies that could be refundable to grant bodies for non-completion of works and other legal claims against the company.

Share option provision

The share option provision provides for both deferred bonus awards (before share options are awarded) and Employer's NICs due on share options as they exercise. See Note 25 for further details

7.         INVENTORY

Inventories held	2026 £000	Restated 2025 £000
Raw materials	25,804	22,540
Work in progress	39,918	33,469
	65,722	56,009

Management reviewed the provisions allocated against raw materials in the previous year and identified that it would be better allocated against work in progress. An adjustment of £14.7m has been made to increase raw materials and reduce work in progress. This has had no impact on the overall value of inventory and is a classification adjustment between classes of inventory only.

8.         CALLED UP SHARE CAPITAL AND RESERVES

Accounting policy:

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

Called up, allotted and fully paid (ordinary shares of 5p each)	Number of shares	£000
At 1 May 2025	617,370,989		30,869
Fund raise (investment by Great British Energy Group Limited)	71,994,240		3,600
Share options exercised	2,040,334		101
At 30 April 2026	691,405,563		34,570

On 09 April 2026, 71,994,240 ordinary shares were issued for £40.0m. After deducting expenses of £0.9m, net equity proceeds for this share issuance were £39.1m.

Holders of ordinary shares have voting rights at General Meetings in proportion with their shareholding.

The share premium account represents the amount paid in excess of the nominal value when shares are issued.

The merger reserve arose on the acquisition of ITM Power (Research) Limited in 2004.

The foreign exchange reserve arises upon consolidation of the foreign subsidiaries in the Group, and accounts for the difference created by translation of the income statement at average rate compared with the year-end rate used on the balance sheet as well as the effect of the change in exchange rates on opening and closing balances.

The Group's other reserve is retained earnings which represents cumulative profits or losses, net of any dividends paid and other adjustments.

9.         notes to the cash flow statement

		2026 £000	2025 £000
Loss from operations		(30,985)	(54,541)
Adjustments:
Depreciation		5,841	4,927
Share-based payment		1,216	980
Net exchange difference		(1)	(80)
(Loss)/gain on disposal of non-current assets		445	(10)
Write-off of loan notes		268	-
Amortisation		2,873	2,454
Operating cash flows before movements in working capital		(20,343)	(46,270)
Increase/(decrease) in inventories		(9,713)	14,408
Increase/(decrease) in receivables		(4,875)	7,808
Increase in payables		11,706	12,074
Increase/(decrease) in provisions		390	(7,121)
Cash used in operations		(22,835)	(19,101)
Interest paid		(1,155)	(919)
Income taxes paid		-	-
Net cash used in operating activities		(23,990)	(20,020)

10.       Events after the balance sheet date           

In April 2026 we announced DESNZ's intention to award a £46.5m grant to ITM, subject to subsidy control scrutiny. On 9^th July 2026 we further announced that this grant had been formally awarded.

There are no further material events that have occurred after the balance sheet date.

 

END