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1. Company Snapshot

1.a. 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, and industrial hydrogen applications.The company is also involved in the development and manufacture of prototype products; and sale of electrolysis equipment and hydrogen storage solutions.


ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.

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1.b. Last Insights on ITM

ITM Power Plc's recent performance has been driven by its resilience in a challenging market environment. The company's ability to withstand the broader market downturn, as evidenced by the decline of the FTSE 100 and FTSE 250 indices, highlights its strong financials and growth potential. Additionally, the company's inclusion in recent articles highlighting UK penny stocks to watch suggests its increasing visibility and attractiveness to investors.

1.c. Company Highlights

2. ITM Power's H1 FY'26 Results: Strong Revenue Growth and Operational Improvements

ITM Power reported a record GBP 18 million in revenue for the first half of FY'26, driven by equipment sales of GBP 15.5 million and engineering studies, spare parts, maintenance, and equipment upgrades of GBP 2.5 million. The gross loss reduced to GBP 6.5 million, a significant improvement from GBP 10.2 million in the first half of the previous year, reflecting higher production volumes and cost control. The company's EPS came in at -0.02294, worse than the estimated -0.0116.

Publication Date: 08:32

📋 Highlights
  • Record Revenue:: H1 revenue hit GBP 18 million, driven by GBP 15.5 million in equipment sales and GBP 2.5 million in ancillary services.
  • Contract Backlog Growth:: Backlog reached GBP 152 million, with 71% of contracts now profitable (up from 60% in April 2025).
  • Cost Reduction Breakthrough:: New CHRONOS stack platform promises 40% lower costs, higher performance, and compact design for future electrolyzers.
  • Improved Financial Performance:: Gross loss narrowed to GBP 6.5 million (vs. GBP 10.2 million in prior year), aided by higher production volumes and cost control.
  • Strong Cash Position:: Ended H1 with GBP 197.8 million cash, a GBP 9.2 million reduction over 12 months, supporting execution of GBP 152 million in pending orders.

Operational Highlights

The company has made significant progress in its operations, cutting electrolysis time during end-of-line testing in half and increasing throughput. Its new ALPHA 50 product has been well-received in the market, with a price of EUR 50 million for the 50-megawatt system. ITM's newest stack platform, CHRONOS, is expected to be a game-changer, offering a 40% cost reduction, higher performance, and a more compact design.

Order Backlog and Contract Wins

The contracted order backlog continued to grow, with a notable increase in the share of profitable contracts to 71% from 60% in April 2025. The company has secured several equipment supply contracts, including for Westnetz in Germany and a cement producer in Spain. RWE has reserved 150 megawatts of NEPTUNE V capacity with ITM, demonstrating growing momentum in the market.

Financial Position and Guidance

The company's balance sheet remains strong, with a cash position of GBP 197.8 million at the end of the first half. Management expects year-end cash to be in the range of GBP 170-175 million. The company maintained revenue guidance of GBP 35-40 million, representing approximately 400% growth over 2 years and 600% over 3 years. EBITDA loss guidance remains unchanged at GBP 27-29 million.

Valuation and Outlook

With a P/S Ratio of 13.72 and an EV/EBITDA of -10.34, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 36.0%. The launch of CHRONOS, a higher-performing stack, will allow ITM to reenergize its product portfolio, including NEPTUNE and ALPHA 50. The company's strong balance sheet and growing order backlog position it well for future growth.

3. NewsRoom

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ITM Power PLC (ITMPF) (Half Year 2026) Earnings Call Highlights: Record Revenue and Strategic ...

Feb -02

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ITM Power PLC (ITMPF) (Q2 2026) Earnings Call Highlights: Record Revenue Amidst Strategic Challenges

Feb -02

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Discover ITM Power And 2 Other Promising UK Penny Stocks

Jan -06

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Stablegrid selects ITM Power for energy infrastructure projects

Nov -28

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UK Penny Stocks Spotlight: ITM Power And 2 Promising Picks

Nov -26

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Germany’s Stablegrid selects ITM Power for 710MW energy projects

Nov -21

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UK Penny Stocks: ITM Power And 2 Other Companies To Watch

Oct -22

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RWE signs capacity reservation agreement with ITM Power

Sep -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.72%)

6. Segments

Transport

Expected Growth: 24.07%

ITM Power Plc's 24.07% growth in Transport is driven by increasing adoption of hydrogen fuel cell technology in the transportation sector, government incentives for clean energy, and rising demand for zero-emission vehicles. Additionally, partnerships with major automotive companies and investments in infrastructure development are contributing to the segment's rapid expansion.

Industry

Expected Growth: 11.37%

ITM Power Plc's 11.37% growth in the industry is driven by increasing demand for green hydrogen, government incentives for clean energy, and rising adoption of fuel cell technology in transportation and industrial applications, as well as the company's strategic partnerships and expanding product offerings.

Other

Expected Growth: 11.37%

ITM Power Plc's 11.37% growth is driven by increasing demand for green hydrogen, government incentives for clean energy, and strategic partnerships. The company's electrolyser technology is scalable, efficient, and cost-effective, making it an attractive solution for industries transitioning to renewable energy. Additionally, ITM Power's expanding product portfolio and growing order book contribute to its rapid growth.

Power

Expected Growth: 13.93%

ITM Power Plc's 13.93% growth is driven by increasing demand for green hydrogen, expansion into new markets, and strategic partnerships. The company's innovative electrolyser technology and scalable manufacturing capabilities position it for continued growth in the clean energy sector.

7. Detailed Products

Hydrogen Electrolysis Systems

ITM Power's hydrogen electrolysis systems are designed to convert renewable energy into hydrogen gas, which can be used as a clean energy carrier for transportation, power generation, and industrial applications.

Hydrogen Refuelling Stations

ITM Power's hydrogen refuelling stations provide a safe and efficient way to dispense hydrogen fuel to vehicles, enabling the widespread adoption of fuel cell electric vehicles.

Power-to-X (P2X) Systems

ITM Power's P2X systems convert excess renewable energy into hydrogen, methane, or other energy carriers, enabling the efficient storage and transportation of renewable energy.

Electrolyser Systems for Industrial Applications

ITM Power's electrolyser systems are designed for industrial applications such as chemical synthesis, power generation, and oil refining, providing a clean and efficient source of hydrogen.

Energy Storage Systems

ITM Power's energy storage systems integrate hydrogen electrolysis with energy storage technologies, enabling the efficient storage of renewable energy for grid-scale applications.

8. ITM Power Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ITM Power Plc is medium, as there are alternative energy storage solutions available in the market, but the company's focus on hydrogen fuel cells provides a unique value proposition.

Bargaining Power Of Customers

The bargaining power of customers is low, as ITM Power Plc's products are highly specialized and customers have limited alternatives, giving the company a strong negotiating position.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium, as ITM Power Plc relies on a few key suppliers for critical components, but the company's strong relationships and long-term contracts mitigate the risk of supplier power.

Threat Of New Entrants

The threat of new entrants is high, as the hydrogen fuel cell market is growing rapidly and attracting new entrants, increasing competition for ITM Power Plc.

Intensity Of Rivalry

The intensity of rivalry is high, as ITM Power Plc operates in a highly competitive market with several established players, and the company must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.57%
Debt Cost 6.93%
Equity Weight 97.43%
Equity Cost 12.84%
WACC 12.69%
Leverage 2.64%

11. Quality Control: ITM Power Plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Waga Energy

A-Score: 4.3/10

Value: 6.2

Growth: 3.6

Quality: 3.2

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
ITM Power

A-Score: 4.1/10

Value: 7.0

Growth: 5.7

Quality: 2.7

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Nel

A-Score: 3.2/10

Value: 8.0

Growth: 5.6

Quality: 2.8

Yield: 0.0

Momentum: 2.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Koenig & Bauer

A-Score: 2.8/10

Value: 8.0

Growth: 2.7

Quality: 2.0

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
LPKF Laser & Electronics

A-Score: 2.6/10

Value: 4.8

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Kornit Digital

A-Score: 2.5/10

Value: 6.6

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.62$

Current Price

0.62$

Potential

-0.00%

Expected Cash-Flows