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ITM Power
(LSE:ITM)
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Rating:50Neutral
Price Target:
86.00 p
▼(-18.79% Downside)
Action:Reiterated
Date:10/20/26
The score is held down primarily by weak financial performance quality (ongoing losses and cash burn) and bearish technicals (below key moving averages with negative MACD). The earnings call provides meaningful support through improving operational trajectory and constructive FY2027 guidance, while valuation is limited by the absence of profitability and no dividend support in the provided data.
Positive Factors
Strong revenue growth
Rapid revenue growth demonstrates stronger commercial traction and expanding adoption of ITM’s electrolyser systems. If sustained, higher volumes should improve factory utilization, support operating leverage, and strengthen the company’s position in the growing industrial hydrogen market over the coming quarters.
Negative Factors
Persistent operating losses
ITM has not yet reached a profitable operating model, with losses attributed partly to factory underutilization despite an established manufacturing cost base. Continued losses can delay self-funded growth and make sustainable margin improvement dependent on higher volumes and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Rapid revenue growth demonstrates stronger commercial traction and expanding adoption of ITM’s electrolyser systems. If sustained, higher volumes should improve factory utilization, support operating leverage, and strengthen the company’s position in the growing industrial hydrogen market over the coming quarters.
Read all positive factors
ITM Power (ITM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£598.41M
Dividend YieldN/A
Average Volume (3M)2.62M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth67.62%
EPS Growth45.05%
CountryUK
Employees306
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.04
Shares Outstanding691,405,600
10 Day Avg. Volume3,297,194
30 Day Avg. Volume2,617,160
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)4.08
Price to Sales (P/S)22.46
P/FCF Ratio-37.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£110.50Price Target Upside4.34% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.03
Revenue Forecast (FY)£57.01M
ITM Power Business Overview & Revenue Model
Company Description
ITM Power Plc, established in 2001 and headquartered in Sheffield, UK, is a specialist in hydrogen energy solutions. The company focuses on the development, production, and sale of sophisticated hydrogen systems, catering to energy storage, transp...
ITM Power Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. ITM reported record revenue, sharply reduced losses, a substantially more profitable backlog, a stronger cash position, major project wins, progress on large-scale PEM deployments, and meaningful support for the Chronos program. Management also highlighted the potential of Hydropulse and the Rheinmetall collaboration. These positives were tempered by continuing EBITDA losses, factory underutilization, legacy contracts without margin contribution, delayed investment decisions and U.K. funding programs, challenging U.S. and Chinese markets, and financing requirements for the large Hydropulse project.Positive Updates
Record FY2026 Revenue Growth
ITM reported its highest-ever annual revenue of GBP 43.6 million, up 68% year-on-year and more than 700% over three years. Equipment sales contributed GBP 40.7 million, while engineering studies, maintenance, replacements, and spare parts generated GBP 2.9 million.
Negative Updates
Longer-than-Expected FID Timelines
Management stated that many final investment decisions continue to take longer than anticipated. Larger projects generally require FEED studies and longer periods from initial customer discussions through negotiation and FID.
Read all updates
Q4-2026 Updates
Positive
Negative
Record FY2026 Revenue Growth
ITM reported its highest-ever annual revenue of GBP 43.6 million, up 68% year-on-year and more than 700% over three years. Equipment sales contributed GBP 40.7 million, while engineering studies, maintenance, replacements, and spare parts generated GBP 2.9 million.
Read all positive updates
Company Guidance
For the year ending 30th of April 2027, ITM expects revenue of between GBP 50 million and GBP 60 million, representing further year-on-year growth and an increase of more than 900% over four years; profitable contracts are expected to account for approximately 2/3 of annual revenue, with the remaining approximately 1/3 relating to legacy contracts, which are fully provided for and not expected to contribute to gross profit; the company expects an adjusted EBITDA loss of between GBP 17 million and GBP 20 million and to end the year with cash of between GBP 170 million and GBP 180 million, including the first forecast capital expenditure on the new Chronos manufacturing line.ITM Power Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 43.65M | 26.04M | 16.51M | 5.23M | 5.63M |
| Gross Profit | -14.81M | -23.69M | -16.66M | -83.01M | -34.32M |
| EBITDA | -23.63M | -37.00M | -30.54M | -95.23M | -42.93M |
| Net Income | -24.99M | -45.52M | -27.22M | -101.20M | -46.69M |
Balance Sheet | |||||
| Total Assets | 371.68M | 341.96M | 381.78M | 402.32M | 458.17M |
| Cash, Cash Equivalents and Short-Term Investments | 215.62M | 207.04M | 230.35M | 283.33M | 366.18M |
| Total Debt | 14.10M | 12.33M | 12.70M | 7.81M | 7.15M |
| Total Liabilities | 131.58M | 117.71M | 113.06M | 106.81M | 63.21M |
| Stockholders Equity | 240.10M | 224.25M | 268.72M | 295.51M | 394.95M |
Cash Flow | |||||
| Free Cash Flow | -26.10M | -32.94M | -65.08M | -83.11M | -49.01M |
| Operating Cash Flow | -16.63M | -20.02M | -50.58M | -67.99M | -37.85M |
| Investing Cash Flow | -13.24M | -2.65M | -795.00K | -10.90M | -15.38M |
| Financing Cash Flow | 38.48M | -667.00K | -891.00K | -95.00K | 243.13M |
ITM Power Technical Analysis
Negative
105.90
Price Trends
100.07
Negative
108.86
Negative
102.72
Negative
Market Momentum
-4.50
Positive
30.20
Neutral
13.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITM, the sentiment is Negative. The current price of 105.9 is above the 20-day moving average (MA) of 93.59, above the 50-day MA of 100.07, and above the 200-day MA of 102.72, indicating a bearish trend. The MACD of -4.50 indicates Positive momentum. The RSI at 30.20 is Neutral, neither overbought nor oversold. The STOCH value of 13.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ITM.
ITM Power Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £6.87B | 21.42 | 32.41% | 1.20% | 7.67% | 45.97% | |
76 Outperform | £4.01B | 33.04 | 21.48% | 1.70% | 2.22% | 25.89% | |
65 Neutral | £6.64B | 25.12 | 13.45% | 1.64% | 5.84% | -14.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £732.50M | 39.79 | 5.79% | 4.60% | -5.58% | -32.73% | |
60 Neutral | £1.08B | 27.56 | 34.20% | 6.71% | 24.42% | 103.25% | |
50 Neutral | £598.41M | -22.42 | -11.09% | ― | 67.62% | 45.05% |
* Industrials Sector Average
GB:ITM
ITM Power
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ITM Power Corporate Events
Business Operations and Strategy
ITM Power Executives Add Shares Under Employee Buy-As-You-Earn Plan
Positive
Oct 20, 2026
ITM Power has reported routine share purchases and matching share awards to its executive directors under its Buy as You Earn Share Incentive Plan. The scheme allows employees to acquire up to £150 of shares per month, which the company match...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
ITM Power posts record revenue and deepens green hydrogen footprint
Positive
Oct 19, 2026
ITM Power reported record revenue of £43.6m for FY26, a 68% year-on-year increase, alongside a sharply reduced adjusted EBITDA loss of £20.2m and a strong year-end cash balance of £215.6m. The company maintained a £144.0m contr...
Regulatory Filings and ComplianceShareholder Meetings
ITM Power Corrects Equity Authority Figure Ahead of AGM
Neutral
Oct 16, 2026
ITM Power has issued a correction to its previously circulated notice of resolutions for the 30 October 2026 Annual General Meeting, after identifying a typographical error in resolution 11b regarding the aggregate nominal amount of equity securit...
Business Operations and StrategyPrivate Placements and Financing
ITM Power’s Hydropulse Secures Terms for 150 MW Green Hydrogen Deal
Positive
Oct 12, 2026
ITM Power’s Hydropulse subsidiary has signed Heads of Terms with a leading European oil refinery for a 150 MW on-site green hydrogen project based on the company’s Alpha electrolyser platform under a planned 10-year agreement. The proj...
Business Operations and StrategyFinancial Disclosures
ITM Power Raises FY26 Guidance as Losses Narrow and Investor Confidence Builds
Positive
Oct 8, 2026
ITM Power has upgraded its guidance for the 2026 financial year, narrowing its adjusted EBITDA loss to between £20 million and £21 million, a 27% improvement on previous guidance and a 38% year-on-year gain, while leaving revenue and cas...
Regulatory Filings and Compliance
ITM Power Reports Small CFO Share Sale Executed by Custodian
Neutral
Oct 5, 2026
ITM Power disclosed a transaction involving Chief Financial Officer Amy Grey, whose custodian sold 111 ordinary shares at £1.0053 each on 1 October 2026 on the London Stock Exchange’s AIM market. The company stated the sale was executed...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
ITM Power sets AGM date as audit transition delays annual report
Neutral
Oct 5, 2026
ITM Power, a UK-listed green hydrogen equipment specialist, has scheduled its 2026 Annual General Meeting for 30 October in Sheffield and made the meeting notice available online and by post to shareholders. The company is finalising its first-yea...
Other
ITM Power Executives Increase Holdings Under Buy as You Earn Plan
Positive
Sep 17, 2026
ITM Power has reported routine share purchases and matching share awards to three senior executives under its Buy as You Earn Share Incentive Plan. Chief Executive Officer Dennis Schulz, Chief Financial Officer Amy Grey and Chief Technology Office...
Business Operations and Strategy
ITM Power Executives Boost Holdings Under Buy as You Earn Plan
Positive
Aug 21, 2026
ITM Power has reported August 2026 share purchases and matching awards to its senior leadership under the company’s Buy as You Earn share incentive plan. Under this scheme, employees can acquire up to £150 of ordinary shares each month,...
Business Operations and Strategy
ITM Power Marks Milestone as First Lingen Green Hydrogen Reaches German Industrial Customer
Positive
Aug 4, 2026
ITM Power has reached a major milestone in the GET H2 Nukleus project, with the first green hydrogen produced at RWE’s Lingen electrolysis plant in Germany and delivered via about 120 km of pipeline to Evonik’s chemical park in Marl. T...
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.