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Ceres Power Holdings (GB:CWR)
LSE:CWR
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Ceres Power Holdings (CWR) AI Stock Analysis

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GB:CWR

Ceres Power Holdings

(LSE:CWR)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
209.00p
▼(-8.57% Downside)
Ceres Power Holdings' overall score is driven by strong technical momentum and strategic progress highlighted in the earnings call. However, financial performance is hindered by ongoing losses and negative cash flow, and valuation is impacted by a negative P/E ratio. The company's transition from R&D to commercialization and strategic initiatives are positive, but profitability remains a key challenge.
Positive Factors
Strategic Partnerships
Significant investments and partnerships, such as with Delta Electronics, enhance Ceres Power's market reach and technological development, supporting long-term growth and innovation.
Transition to Commercialization
The shift from R&D to mass production with Doosan validates the business model and supports sustainable revenue growth, marking a key step in scaling operations.
Strong Balance Sheet
A strong balance sheet with positive cash flow and significant cash reserves provides financial stability, enabling Ceres Power to invest in growth opportunities and withstand market fluctuations.
Negative Factors
Ongoing Losses
Continued losses despite revenue growth indicate challenges in achieving profitability, which may hinder long-term financial sustainability and investor confidence.
Revenue Recognition Challenges
Complexities in revenue recognition can lead to unpredictable financial results, complicating financial planning and potentially impacting investor trust.
Order Intake Decline
A decline in order intake suggests potential weaknesses in demand or sales execution, which could affect future revenue streams and market position.

Ceres Power Holdings (CWR) vs. iShares MSCI United Kingdom ETF (EWC)

Ceres Power Holdings Business Overview & Revenue Model

Company DescriptionCeres Power Holdings (CWR) is a UK-based company specializing in the development of advanced fuel cell technology, primarily for clean energy applications. The company operates in the renewable energy sector, focusing on the production of solid oxide fuel cells (SOFCs) which are used in a variety of applications, including residential and commercial power generation. Ceres Power's core products include its innovative fuel cell technology, which provides a reliable, efficient, and low-emission energy solution aimed at reducing carbon footprints and transitioning to sustainable energy sources.
How the Company Makes MoneyCeres Power generates revenue primarily through the sale of its fuel cell technology and related systems. The company operates a business model that includes both direct sales of its products and licensing agreements with strategic partners who integrate its technology into their own energy solutions. Key revenue streams include the sale of fuel cell components, ongoing royalties from licensees, and collaborations with major players in the energy sector, which enhance market reach and technological development. Significant partnerships, such as those with leading automotive and energy companies, play a crucial role in driving sales and expanding the adoption of Ceres Power's technology, thereby contributing to its overall earnings.

Ceres Power Holdings Earnings Call Summary

Earnings Call Date:Sep 26, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 20, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted substantial progress in production and partnerships, along with sound financial management and strategic initiatives to capitalize on market opportunities. However, challenges in revenue recognition and ongoing losses, along with a decline in order intake, present significant hurdles. The transformation initiative is a strategic move to optimize operations and address these challenges.
Q2-2025 Updates
Positive Updates
Start of Production with Doosan in South Korea
Achieved a major milestone with the beginning of production in collaboration with Doosan, which validates the business model and R&D innovation, transitioning from R&D to mass production.
Significant Investments and Partnerships
Delta Electronics committed GBP 170 million into manufacturing facilities in Taiwan. Partnerships with Shell and Thermax in India are progressing, including the opening of the HydroGenx Hub.
Positive Cash Flow and Strong Balance Sheet
The company maintains a strong balance sheet and reported positive cash flow for the period, preserving over GBP 100 million in cash.
Reduction in Operating Expenses
Achieved a 17% reduction in operating expenses, surpassing the target of 15%.
High Gross Margins
Reported industry-leading high gross margins, providing flexibility for future investments.
Business Transformation Initiative
Announced a business transformation initiative aiming for a 20% reduction in operating expenses to focus on commercialization opportunities.
Negative Updates
Revenue Recognition Challenges
Difficulties in predicting revenue recognition due to complex MLA contracts and standards like IFRS 15.
Uncertain Timing of New MLA Signings
The timing of new manufacturing license agreements (MLAs) is unpredictable, impacting revenue expectations.
Ongoing Losses Despite Revenue
Despite revenue generation, the company remains loss-making due to continued investment in stack platform development.
Order Intake Decline
The order intake significantly declined compared to the previous year, with only GBP 0.9 million compared to a larger number last year.
Company Guidance
In the recent call, Ceres Power provided a comprehensive update on its strategic progress and financial performance for the first half of 2025. The company highlighted several key milestones, including the commencement of production with Doosan in South Korea, which marks a significant shift from R&D to commercialization. Ceres also reported a strong balance sheet with positive cash flow and managed to preserve over GBP 100 million in cash. Revenue for the period was just over GBP 20 million, driven by high gross margins thanks to its licensing model. Despite still being a loss-making company, Ceres achieved a 17% cost savings in OpEx and CapEx, surpassing their initial 15% target. Looking forward, the company plans a business transformation initiative aimed at reducing operating expenses by around 20% to better position itself for future growth. This initiative is part of their strategy to enhance their focus on the power market, which is projected to reach 22 gigawatts by 2030, and to capitalize on opportunities in both the power and hydrogen markets.

Ceres Power Holdings Financial Statement Overview

Summary
Ceres Power Holdings shows strong revenue growth but struggles with profitability, as indicated by negative net and EBIT margins. The balance sheet is stable with low leverage, but cash flow is negative, reflecting operational challenges despite significant cash reserves.
Income Statement
55
Neutral
Ceres Power Holdings shows significant revenue growth with an increase from £22.3M in 2023 to £51.9M in 2024, a 132.4% growth rate. However, the company struggles with profitability, as indicated by consistent negative net and EBIT margins over the years. Despite growing revenue, the net income remains negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The company's balance sheet is stable with a low debt-to-equity ratio of 0.01, indicating low leverage. The equity ratio is strong at 84.97%, showing a high proportion of assets financed by equity. However, net losses have impacted the return on equity, which is negative.
Cash Flow
50
Neutral
Cash flow analysis reveals negative free cash flow and operating cash flow, indicating cash burn. The free cash flow to net income ratio is negative due to continuous losses. However, the company maintains significant cash reserves, which provides a buffer for operational funding.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.48M51.89M22.32M19.79M30.78M21.12M
Gross Profit33.90M40.16M13.55M13.05M19.05M14.22M
EBITDA-21.88M-18.68M-44.05M-45.11M-17.30M-9.21M
Net Income-35.34M-28.30M-54.01M-47.62M-21.09M-9.88M
Balance Sheet
Total Assets162.41M181.10M206.37M261.99M299.99M147.51M
Cash, Cash Equivalents and Short-Term Investments104.07M102.47M139.96M182.32M244.58M102.19M
Total Debt2.80M2.22M2.60M3.12M3.04M4.45M
Total Liabilities27.85M27.27M25.74M24.59M19.34M26.00M
Stockholders Equity134.56M153.83M180.63M233.77M280.65M121.51M
Cash Flow
Free Cash Flow-21.92M-42.68M-48.62M-68.47M-32.17M-18.42M
Operating Cash Flow-18.99M-35.94M-33.90M-50.29M-20.22M-5.37M
Investing Cash Flow10.66M34.26M12.29M-38.85M-32.85M-26.58M
Financing Cash Flow-654.00K-478.00K-242.00K129.00K171.00M57.47M

Ceres Power Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price228.60
Price Trends
50DMA
140.82
Positive
100DMA
117.73
Positive
200DMA
105.64
Positive
Market Momentum
MACD
29.72
Negative
RSI
67.43
Neutral
STOCH
74.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CWR, the sentiment is Positive. The current price of 228.6 is above the 20-day moving average (MA) of 184.11, above the 50-day MA of 140.82, and above the 200-day MA of 105.64, indicating a bullish trend. The MACD of 29.72 indicates Negative momentum. The RSI at 67.43 is Neutral, neither overbought nor oversold. The STOCH value of 74.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CWR.

Ceres Power Holdings Risk Analysis

Ceres Power Holdings disclosed 6 risk factors in its most recent earnings report. Ceres Power Holdings reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ceres Power Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
£443.38M-23.26%12.58%12.39%
54
Neutral
£5.68M7.61-1.39%1.74%-10.88%-122.05%
45
Neutral
£82.28M-31.45%265.67%-16.50%
44
Neutral
£103.08M-86.37%732.03%12.60%
44
Neutral
£19.75M-36.75%20.98%17.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CWR
Ceres Power Holdings
228.60
-0.40
-0.17%
GB:AFC
AFC Energy
9.11
0.29
3.29%
GB:EAAS
eEnergy Group
5.10
-0.85
-14.29%
GB:IKA
Ilika plc
45.50
23.00
102.22%
GB:LPA
LPA Group plc
43.00
-14.50
-25.22%
GB:GELN
Gelion PLC
22.50
1.00
4.65%

Ceres Power Holdings Corporate Events

Regulatory Filings and Compliance
Ceres Power Announces Total Voting Rights Update
Neutral
Jul 31, 2025

Ceres Power Holdings plc announced that as of 31 July 2025, it has 193,812,250 Ordinary Shares in issue, each with one voting right, and no shares held in treasury. This information is crucial for shareholders to calculate and notify any changes in their interest in the company as per the Disclosure Guidance and Transparency Rules, reflecting Ceres’ commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Ceres and Doosan Launch Mass Production of Fuel Cell Systems
Positive
Jul 28, 2025

Ceres Power Holdings and Doosan Fuel Cell have announced the commencement of mass production of fuel cell power systems using Ceres’ solid oxide technology at Doosan’s facility in South Korea. This marks a significant milestone as Doosan is the first strategic partner to begin mass production, with products targeting the AI/data center and commercial power markets. The collaboration aims to meet the increasing power demands driven by AI and contribute to the global transition to a decarbonized society. The fuel cells will initially be marketed in South Korea, with applications in stationary distributed power, data centers, renewable power grids, and marine shipping.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Ceres Power Holdings Sees Major Stake Acquisition by M&G Plc
Positive
Jul 10, 2025

Ceres Power Holdings has announced a change in its major holdings, with M&G Plc acquiring a 5.379389% voting rights stake in the company. This acquisition reflects M&G Plc’s strategic interest in Ceres’ clean energy technology, potentially strengthening Ceres’ market position and influence in the green energy sector. The transaction highlights the growing investor confidence in Ceres’ innovative solutions for decarbonizing industries and the company’s potential for future growth.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £265.00 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Ceres Power Holdings Announces Change in Voting Rights Structure
Neutral
Jul 9, 2025

Ceres Power Holdings has announced a change in its voting rights structure following an acquisition or disposal of shares by Robert Bosch GmbH. The transaction, which crossed the threshold on July 7, 2025, resulted in Bosch holding 14.14% of the voting rights in Ceres. This development could potentially influence Ceres’ strategic direction and strengthen its position in the clean energy sector, given Bosch’s significant stake and potential interest in Ceres’ innovative technologies.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Regulatory Filings and Compliance
Ceres Power Confirms Total Voting Rights as of June 2025
Neutral
Jun 30, 2025

Ceres Power Holdings plc announced that as of 30 June 2025, it has 193,809,537 Ordinary Shares in issue, each with one voting right, and holds no shares in treasury. This information is crucial for shareholders to calculate their interests under the Disclosure Guidance and Transparency Rules, impacting how they manage their stakes in the company.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Ceres Power Grants Long Term Incentive Plan Awards to Executives
Positive
Jun 27, 2025

Ceres Power Holdings plc announced the grant of Long Term Incentive Plan (LTIP) share options to key executives, including CEO Philip Caldwell and CFO Stuart Paynter. These options are tied to achieving specific commercial and share price targets over a three-year period, with an additional two-year holding requirement. This move underscores Ceres’ commitment to aligning executive incentives with long-term company performance, potentially enhancing its competitive positioning in the clean energy sector.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Business Operations and Strategy
Ceres Power Boosts Employee Engagement with Sharesave Scheme
Positive
Jun 16, 2025

Ceres Power Holdings plc has announced the grant of options under its Sharesave Scheme, allowing employees to purchase a total of 2,994,376 ordinary shares. This initiative, approved by HM Revenue & Customs, aims to promote wider employee share ownership. The options are exercisable between July and December 2028 at a price of 71.15p per share. Key managerial figures, including the CEO, Chief Product Officer, and Chief People Officer, have been granted specific options, reflecting the company’s commitment to aligning employee interests with corporate growth.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Ceres Power Achieves Milestone in Hydrogen Production with Megawatt-Scale Demonstrator
Positive
May 20, 2025

Ceres Power Holdings has announced the successful production of hydrogen at its first megawatt-scale solid oxide electrolyser cell (SOEC) demonstrator system, located at Shell’s Technology Centre in Bangalore, India. This development marks a significant milestone in the collaboration between Ceres and Shell, showcasing the maturity of Ceres’ electrolyser technology and its potential to produce hydrogen efficiently. The system is expected to contribute to India’s ambitious green hydrogen goals by providing a scalable and cost-effective solution for industrial processes. This achievement underscores Ceres’ capability to meet industrial needs and advance the clean energy ecosystem, aligning with India’s target of developing substantial green hydrogen production capacity by 2030.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Ceres Power Successfully Passes AGM Resolutions Amid Shareholder Concerns
Neutral
May 15, 2025

Ceres Power Holdings plc announced that all resolutions were passed at its Annual General Meeting, including the reappointment of auditors and the election of board members. Notably, 20.33% of votes were against the Directors’ Remuneration Report, prompting the company to engage with dissenting shareholders to address their concerns. This engagement will be reported in the 2025 Annual Report, reflecting the company’s commitment to shareholder dialogue and corporate governance.

The most recent analyst rating on (GB:CWR) stock is a Buy with a £4.50 price target. To see the full list of analyst forecasts on Ceres Power Holdings stock, see the GB:CWR Stock Forecast page.

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.Date of analysis: Oct 09, 2025