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ITM Power PLC (GB:ITM)
LSE:ITM
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ITM Power
(LSE:ITM)
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Rating:47Neutral
Price Target:
63.00p
▼(-12.86% Downside)
The overall score is primarily influenced by financial performance challenges, including profitability and cash flow issues. However, positive developments from the earnings call, such as revenue growth and strategic initiatives, provide some optimism. Technical indicators and valuation metrics remain weak, contributing to a lower overall score.
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding market demand and successful execution of sales strategies, supporting long-term business sustainability.
Contract Backlog
A growing contract backlog suggests robust future revenue streams, enhancing financial predictability and supporting strategic growth initiatives.
Technological Advancements
Innovations like CHRONOS enhance competitive positioning by offering superior products, potentially increasing market share and profitability.
Negative Factors
Profitability Challenges
Persistent profitability issues can hinder reinvestment capabilities and long-term financial health, necessitating operational improvements.
Cash Flow Issues
Cash flow difficulties can restrict growth opportunities and operational flexibility, impacting the company's ability to finance new projects.
Legacy Contract Challenges
Dependence on unprofitable legacy contracts may strain resources and delay the transition to more profitable business models.
ITM Power (ITM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£446.36M
Dividend YieldN/A
Average Volume (3M)2.35M
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth57.73%
EPS Growth-67.12%
CountryUK
Employees359
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.03
Shares Outstanding617,371,000
10 Day Avg. Volume3,198,082
30 Day Avg. Volume2,346,958
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£68.20Price Target Upside-5.67% Downside
Rating ConsensusHold
Number of Analyst Covering6
ITM Power Business Overview & Revenue Model
Company DescriptionITM 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.
How the Company Makes MoneyITM Power generates revenue through the sale of its electrolyzer systems and related equipment, which are utilized in various hydrogen production projects across different industries. The company's revenue model includes direct sales, long-term contracts, and partnerships with energy companies and governments to establish hydrogen production infrastructure. Key revenue streams come from large-scale project deployments, maintenance services, and the potential for recurring revenue through service agreements. Additionally, ITM Power benefits from government grants and funding initiatives aimed at promoting renewable energy technologies, which can further enhance its financial stability and growth prospects.
ITM Power Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant positive developments, including strong revenue growth, an impressive contract backlog, and operational improvements. The introduction of new business models and technological advancements further position ITM Power Plc for future success. However, challenges remain with legacy contracts and market slowdowns in the U.S. Despite these challenges, the overall sentiment of the call leans towards a positive outlook, supported by a robust financial position and strategic initiatives.Q4-2025 Updates
Positive Updates
Record Revenue Growth
ITM Power Plc reported a 50% year-on-year increase in revenue, reaching GBP 26 million, significantly ahead of their original guidance of GBP 18 million to GBP 22 million.
Strong Contract Backlog
The company's contract order backlog reached GBP 145.1 million, doubling from the previous fiscal year, indicating strong future revenue potential.
Operational Excellence
Factory Acceptance Test pass rate improved from under 50% to 99%, demonstrating significant improvements in product quality and reliability.
Successful Launch of New Business Model
The introduction of Hydropulse, a build, own, operate business model, was met with excitement, aiming to provide zero CapEx and zero risk solutions to customers.
Technological Advancements
The next-generation stack platform, CHRONOS, promises larger capacity, lower cost, and higher performance, with significant improvements in power density and reduced part count.
Positive Financial Position
ITM Power Plc ended the fiscal year with a cash position of GBP 207 million, significantly ahead of their original guidance.
Negative Updates
Legacy Contract Challenges
The majority of equipment sales revenue came from legacy contracts, which were not contributing to profit, although they are being fulfilled.
Cash Flow and Inventory Management
Despite reducing overall inventory balances, there was a need for improvement in cash flow management, with specific focus on CapEx and work in progress related to FY '26 guidance.
U.S. Market Slowdown
There was a noted slowdown in green hydrogen projects in the U.S., although ITM Power Plc managed to mitigate impacts by not heavily investing in the region prematurely.
Company Guidance
During the call, ITM Power Plc provided extensive guidance and updates on their performance and strategic outlook. The company reported a revenue increase of 50% year-on-year, reaching GBP 26 million, with significant contributions from equipment sales and other services. Their contract backlog has doubled to GBP 145.1 million, signaling robust future prospects. ITM emphasized operational excellence with a Factory Acceptance Test pass rate improvement from below 50% to 99%, underscoring advancements in quality and efficiency. They also highlighted a strong financial position with GBP 207 million in cash as of April 2025. Looking ahead, ITM expects a further 50% revenue growth in the fiscal year ending April 2026, targeting between GBP 35 million and GBP 40 million, and aims to reduce their adjusted EBITDA loss to GBP 27 million to GBP 29 million. The presentation emphasized ITM's commitment to disciplined capital management, continued innovation with the development of their next-generation stack platform, CHRONOS, and the strategic launch of Hydropulse, a new business model aimed at expanding market reach and profitability.ITM Power Financial Statement Overview
Summary
ITM Power shows revenue growth but faces significant profitability and cash flow challenges. The stable balance sheet with low leverage is a positive, but negative margins and cash flow issues highlight operational inefficiencies.Income Statement
ITM Power has shown some revenue growth, with a 12.44% increase in the latest year. However, the company is struggling with profitability, as indicated by negative gross, net, EBIT, and EBITDA margins. The consistent negative margins highlight ongoing operational challenges and cost management issues.35
Negative
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.05, indicating conservative leverage. However, the return on equity is negative, reflecting poor profitability and efficiency in using shareholders' equity. The equity ratio is not provided, but the overall balance sheet shows a stable capital structure with low financial risk.45
Neutral
Cash Flow
ITM Power's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.04M | 26.04M | 16.51M | 5.23M | 5.63M | 4.28M |
| Gross Profit | -27.55M | -23.69M | -16.66M | -83.01M | -34.32M | -14.74M |
| EBITDA | -42.49M | -37.00M | -31.68M | -96.05M | -42.93M | -24.85M |
| Net Income | -45.52M | -45.52M | -27.22M | -101.20M | -46.69M | -27.70M |
Balance Sheet | ||||||
| Total Assets | 341.96M | 341.96M | 381.78M | 402.32M | 458.17M | 229.07M |
| Cash, Cash Equivalents and Short-Term Investments | 207.04M | 207.04M | 230.35M | 283.33M | 366.18M | 176.08M |
| Total Debt | 12.33M | 12.33M | 12.70M | 7.81M | 7.15M | 6.49M |
| Total Liabilities | 117.71M | 117.71M | 113.06M | 106.81M | 63.21M | 31.62M |
| Stockholders Equity | 224.25M | 224.25M | 268.72M | 295.51M | 394.95M | 197.45M |
Cash Flow | ||||||
| Free Cash Flow | -23.91M | -32.94M | -65.08M | -83.11M | -49.01M | -32.01M |
| Operating Cash Flow | -15.36M | -20.02M | -50.58M | -67.99M | -37.85M | -20.06M |
| Investing Cash Flow | -12.79M | -2.65M | -795.00K | -10.90M | -15.38M | -12.49M |
| Financing Cash Flow | -667.00K | -667.00K | -891.00K | -95.00K | 243.13M | 168.72M |
ITM Power Technical Analysis
Positive
72.30
Price Trends
66.82
Positive
67.37
Positive
49.74
Positive
Market Momentum
2.15
Negative
56.45
Neutral
60.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITM, the sentiment is Positive. The current price of 72.3 is above the 20-day moving average (MA) of 66.81, above the 50-day MA of 66.82, and above the 200-day MA of 49.74, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ITM.
ITM Power Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 1.11B | 40.11 | 2.99% | 2.69% | -6.95% | -52.08% | |
74 Outperform | 2.81B | 28.78 | 17.39% | 1.95% | 1.93% | -15.07% | |
72 Outperform | 983.76M | 40.04 | 17.78% | 1.58% | 14.88% | 45.73% | |
70 Outperform | 6.97B | 22.77 | 16.93% | 1.09% | -1.97% | 40.55% | |
66 Neutral | 602.44M | 21.87 | 14.22% | 4.14% | -7.30% | -59.71% | |
47 Neutral | £446.36M | ― | -18.47% | ― | 57.73% | -67.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
GB:ITM
ITM Power
72.30
21.70
42.89%
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637.00
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GB:GDWN
Goodwin
13,100.00
5,948.75
83.18%
GB:MGAM
Morgan Advanced Materials
216.50
-44.15
-16.94%
GB:ROR
Rotork plc
339.00
14.00
4.31%
GB:WEIR
Weir Group plc (The)
2,706.00
579.82
27.27%
ITM Power Corporate Events
Business Operations and Strategy
ITM Power’s Hydropulse and ABO Energy Forge Strategic Green Hydrogen Partnership
Positive
Aug 26, 2025
ITM Power’s subsidiary, Hydropulse, has partnered with ABO Energy to advance green hydrogen projects by combining their expertise in hydrogen production and renewable energy development. This strategic collaboration aims to provide Hydrogen-as-a-Service and Infrastructure-as-a-Service, focusing on Europe, particularly Spain and Finland, to offer industrial customers reliable hydrogen supply without upfront investment, thus accelerating market traction and emissions reduction.
The most recent analyst rating on (GB:ITM) stock is a Sell with a £0.51 price target. To see the full list of analyst forecasts on ITM Power stock, see the GB:ITM Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
ITM Power Enhances Executive Engagement with Share Incentive Plan
Positive
Aug 18, 2025
ITM Power plc has announced the acquisition and awarding of shares to its Executive Directors under the Buy as You Earn (BAYE) Share Incentive Plan. This initiative allows employees to purchase ordinary shares, with the company matching these purchases on a one-for-one basis, reflecting ITM Power’s commitment to aligning management interests with shareholder value and enhancing employee engagement.
The most recent analyst rating on (GB:ITM) stock is a Hold with a £59.00 price target. To see the full list of analyst forecasts on ITM Power stock, see the GB:ITM 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.