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AFC Energy
(LSE:HPOW)
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Rating:45Neutral
Price Target:
11.00 p
▲(5.36% Upside)
Action:Reiterated
Date:07/10/26
The score is held down primarily by very weak operating performance (revenue collapse, persistently negative margins) and ongoing cash burn, indicating continued reliance on external funding. Technicals add further pressure with the stock trading below key moving averages and negative MACD. The main stabilizer is the low-leverage balance sheet with minimal debt, while valuation is difficult to assess due to negative earnings and no provided dividend yield.
Positive Factors
Low Leverage
Minimal debt reduces refinancing pressure and preserves financial flexibility while AFC Energy develops its hydrogen power systems. This conservative capital structure provides a buffer against interest costs, although continued losses may still erode equity over time.
Negative Factors
Revenue Collapse
The extreme revenue contraction shows that commercial scale and order conversion remain unresolved. Without a durable recovery in unit sales or deployments, AFC Energy cannot spread its development and operating costs across a meaningful revenue base.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Minimal debt reduces refinancing pressure and preserves financial flexibility while AFC Energy develops its hydrogen power systems. This conservative capital structure provides a buffer against interest costs, although continued losses may still erode equity over time.
Read all positive factors
AFC Energy (HPOW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£121.87M
Dividend YieldN/A
Average Volume (3M)2.18M
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-90.00%
EPS Growth24.02%
CountryUK
Employees121
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.02
Shares Outstanding1,136,847,200
10 Day Avg. Volume2,358,962
30 Day Avg. Volume2,175,051
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)2.15
Price to Sales (P/S)626.55
P/FCF Ratio-6.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.02
Revenue Forecast (FY)£2.00M
AFC Energy Business Overview & Revenue Model
Company Description
H-Power plc engages in the development of ammonia-based low carbon hydrogen production and hydrogen-to-power solutions in the United Kingdom. It operates through Sales of fuel cell generators and Rental segments. The company provides an H-Power To...
How the Company Makes Money
AFC Energy makes money primarily by commercialising its fuel cell power products and associated services. Key revenue streams include: (1) Sale of fuel cell generator units and integrated power solutions: revenue is recognised from supplying its h...
AFC Energy Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Neutral
The call balanced clear strategic progress (product launches LC30/Hy-5, key partnerships with Volex, ICL, and an S&P 500 partner, reduced cash burn, successful fundraise and an improved cash runway) against continued near-term commercial and accounting challenges (widened reported loss, negligible current sales, one-off write-offs/provisions, certification and supply risks, and the need to build a firm order book by 2027). The tone was constructive and execution-focused, but the company still needs to convert pipeline interest into contracted orders and navigate certification/supply constraints to realize revenue growth.Positive Updates
Successful Fundraise and Strong Cash Position
Raised gross GBP 27.5m (net GBP 25.8m) during the year and finished with GBP 25.3m cash on the balance sheet, providing runway to deliver strategic initiatives for the next 18 months.
Negative Updates
Widening Reported Loss
Loss before tax increased to GBP 22.2m (FY25) from GBP 17.4m (FY24), a rise of GBP 4.8m (~27.6%). Management attributes much of the change to non-cash accounting items.
Read all updates
Q4-2025 Updates
Positive
Negative
Successful Fundraise and Strong Cash Position
Raised gross GBP 27.5m (net GBP 25.8m) during the year and finished with GBP 25.3m cash on the balance sheet, providing runway to deliver strategic initiatives for the next 18 months.
Read all positive updates
Company Guidance
Management gave detailed near‑term commercial and technical guidance: LC30 CE marking is targeted in August 2026 with sales from September and a committed build of 15 units through October 2026 (each unit takes ~85 hours to build and uses ~40–45 kg H2/day), Dunsfold hydrogen sales to begin April 2026 and Hy‑5 pilot commissioning with ICL import clearance is planned for November 2026, Hy‑5 prototype capacity at Dunsfold is ~1 unit/week (~50/yr) with the pilot site capacity ≈400 kg/day (Hy‑5 spec ~500 kg/day), medium‑term LC30 production is fuel‑cell limited to ~500 units/month (6,000/yr) equating to ~£600m revenue at £100k/unit (management referenced a ~$95k price point), Hy‑5 Fuel‑as‑a‑Service price shown at £10/kg, FY25 PBT loss £22.2m (non‑cash items £12.4m), R&D spend £11.7m (£5.2m capitalized) with ~£3.3m R&D tax credits expected, net fundraising ~£25.8m (gross £27.5m) with £25.3m cash on hand, and cash burn cut to £15.4m in FY25 (from £26.6m) with fixed costs kept <£1m/month.AFC Energy Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
68
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 361.00K | 125.00K | 4.00M | 227.00K | 582.00K | 592.80K |
| Gross Profit | -4.38M | -4.34M | -1.87M | -67.00K | -1.51M | -777.97K |
| EBITDA | -17.23M | -21.51M | -16.66M | -17.82M | -17.60M | -9.51M |
| Net Income | -17.87M | -22.20M | -17.42M | -17.48M | -16.45M | -9.38M |
Balance Sheet | ||||||
| Total Assets | 39.20M | 42.45M | 36.57M | 36.24M | 50.68M | 63.14M |
| Cash, Cash Equivalents and Short-Term Investments | 17.44M | 25.32M | 15.37M | 27.37M | 40.22M | 55.99M |
| Total Debt | 1.30M | 179.00K | 664.00K | 1.12M | 996.00K | 906.00K |
| Total Liabilities | 7.59M | 6.05M | 6.30M | 5.15M | 4.94M | 3.26M |
| Stockholders Equity | 31.61M | 36.40M | 30.27M | 31.09M | 45.74M | 59.89M |
Cash Flow | ||||||
| Free Cash Flow | -8.33M | -12.57M | -26.31M | -14.81M | -15.35M | -10.34M |
| Operating Cash Flow | -7.95M | -11.84M | -18.91M | -13.14M | -12.63M | -8.44M |
| Investing Cash Flow | -13.51M | -15.01M | -7.70M | -1.24M | -2.72M | -1.90M |
| Financing Cash Flow | 25.02M | 25.37M | 14.62M | 1.53M | 197.00K | 34.76M |
AFC Energy Technical Analysis
Negative
10.44
Price Trends
10.89
Negative
12.48
Negative
11.93
Negative
Market Momentum
-0.12
Positive
41.46
Neutral
33.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HPOW, the sentiment is Negative. The current price of 10.44 is below the 20-day moving average (MA) of 10.78, below the 50-day MA of 10.89, and below the 200-day MA of 11.93, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 33.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HPOW.
AFC Energy Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | £39.00M | -4.84 | -42.23% | ― | ― | 42.60% | |
49 Neutral | £913.04M | -16.89 | -39.26% | ― | -37.09% | -67.49% | |
46 Neutral | £46.74M | -6.08 | -45.06% | ― | 53.47% | -14.16% | |
45 Neutral | £121.87M | -5.94 | -52.55% | ― | -90.00% | 24.02% |
* Industrials Sector Average
GB:HPOW
AFC Energy
10.28
1.25
13.84%
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GB:IKA
Ilika plc
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GB:GELN
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-25.25%
AFC Energy Corporate Events
Business Operations and Strategy
H-Power Adds Canaccord Genuity as Joint Broker to Support Hydrogen Growth Strategy
Positive
Aug 10, 2026
H-Power plc has appointed Canaccord Genuity as a joint corporate broker, adding to its existing relationships with Peel Hunt and Zeus. The move expands the company’s broking and advisory network as it pursues wider market engagement on the L...
Business Operations and StrategyProduct-Related Announcements
H-Power Advances Komatsu Hydrogen Engine Project into Final Phase
Positive
Aug 10, 2026
H-Power plc has completed the first phase of its joint development agreement with Japanese heavy equipment giant Komatsu to integrate its proprietary ammonia cracking technology with a Komatsu industrial diesel engine. The partners will now move i...
Regulatory Filings and Compliance
H‑Power updates total voting rights and share capital figure
Neutral
Jul 31, 2026
H‑Power plc reported that as of 31 July 2026 its issued and outstanding share capital stands at 1,136,847,223 ordinary shares, each carrying voting rights. The company confirmed it does not hold any shares in treasury, meaning all issued sha...
Business Operations and StrategyExecutive/Board Changes
H-Power links new management share awards to strict TSR targets
Positive
Jun 29, 2026
H-Power plc has granted nominal-cost share options over 10,397,437 ordinary shares, equivalent to 0.91% of its issued share capital, to executive directors, senior management and employees under its Performance Share Plan. Chief executive John Wil...
Business Operations and StrategyProduct-Related Announcements
H-Power clinches UK-first commercial sale of hydrogen from cracked ammonia to Protium
Positive
Jun 10, 2026
H-Power has signed a contract to supply 5,000 kilograms of fuel cell-grade green hydrogen, produced from its pilot ammonia cracker plant, to green hydrogen energy company Protium in what it says is the UK’s first commercial third‑party...
Business Operations and StrategyFinancial Disclosures
H-Power Builds Commercial Momentum as Green Hydrogen Sales and Orders Accelerate
Positive
Jun 10, 2026
H-Power reported interim results showing rising commercial traction in ammonia-based hydrogen and fuel cell solutions, alongside a rebranding that better reflects its technology focus. Revenue rose significantly year on year, cash burn narrowed an...
Business Operations and StrategyProduct-Related Announcements
H-Power sells LC30 fuel cell units to TAMGO for Saudi trials
Positive
Jun 10, 2026
H-Power has agreed to sell two of its LC30 fuel cell generators to TAMGO, part of Saudi Arabia’s Zahid Group, for field trials and customer demonstrations in the Kingdom. The LC30 units, designed to operate in extreme temperatures, will unde...
Business Operations and StrategyRegulatory Filings and Compliance
H-Power Sets Updated Share Capital Figure for Disclosure Calculations
Positive
May 29, 2026
H-Power plc has confirmed that as of 29 May 2026 its issued and outstanding share capital stands at 1,136,539,282 ordinary shares, each carrying voting rights, with no shares held in treasury. This updated share count will serve as the reference d...
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.