Ceres Power Shares Gain After Promising Results, Centrica Partnership

Ceres Power Holdings plc (CWR.L) witnessed a 6% jump in its share price on Thursday morning following the release of its 2025 full-year results and news of a collaboration with Centrica.

The clean energy technology developer’s report highlighted significant advancements in commercialization and strategic partnerships, fueling investor optimism.

The company reported revenue of £32.6 million, a 37% decrease from £51.9 million in 2024. Despite the revenue dip, Ceres maintained a sector-leading gross margin of 70%, albeit lower than the 77% reported in the previous year. A key highlight was the generation of first royalties. This achievement marks a crucial milestone in Ceres’ transition from a research and development firm to a commercially viable entity.

Ceres Power’s cash and short-term investments position remains strong at £83.3 million, down from £102.5 million in 2024. Disciplined cash management resulted in a reduced cash outflow of £19.2 million, a significant improvement compared to the £37.5 million outflow in the previous year. This improved cash management provides Ceres with a stable financial runway as it scales up its operations.

The company’s strategic partnerships are gaining momentum. Weichai in China signed a manufacturing license agreement, with plans to produce cells and stacks for stationary power markets, including AI data centers. Delta in Taiwan is investing approximately £170 million in land and factory facilities for large-scale manufacturing of hydrogen energy solutions.

Doosan in South Korea has commenced factory production of Ceres-designed fuel cells, generating the company’s first royalties. In Japan, Ceres’ partner DENSO and JERA are testing a solid oxide electrolysis demonstrator for hydrogen production, supported by government funding of approximately £165 million. Shell’s megawatt-scale electrolysis system in India, utilizing Ceres’ technology, exceeded performance expectations.

A business transformation plan is underway, focusing on accelerating commercial opportunities and streamlining operations. Ceres anticipates operating cost savings of 20% in 2026 as a result of this restructuring. This strategic shift aims to enhance efficiency and profitability as the company enters a new phase of growth.

Current contracted group revenue for 2026 stands at approximately £45 million, before accounting for any new business. This provides a solid foundation for future growth and revenue visibility. The collaboration with Centrica, announced separately, further bolsters confidence in Ceres’ prospects.

CEO Phil Caldwell stated, “In 2025 our first partner achieved scaled production, unlocking Ceres’ first royalties, a significant milestone for the business. We sharpened our commercial focus to address rising demands for power generation and advanced our solid oxide technology toward becoming the industry standard, setting a strong foundation for a successful 2026.”