ITM Power Posts Revenue Growth and Improved Cash Position, Outlook Positive

ITM Power plc (LON:ITM) shares initially opened higher on Thursday following the release of its preliminary full-year 2025 results, which showcased substantial revenue growth and a healthier cash position.

The stock opened Thursday's session at over 70p per share. However, it pulled back immediately and currently trades at 66.6p, down around 1.6% from Wednesday's close.

The company's preliminary results for the financial year ended April 30, 2025, revealed a revenue jump of over 50% year-on-year to £26.0 million, within the company's upgraded guidance and marking a 400% increase over two years.

While the adjusted EBITDA loss widened to £33.0 million from £30.4 million the previous year, it landed within the better end of the guided range.

The year-end cash balance of £207.0 million was above original forecasts, driven by positive cash flow in the second half of the year.

A record contracted order backlog of £145.1 million, compared to £79.7 million in FY24, further bolsters the company's outlook. Notably, 60% of this backlog now comprises profitable contracts, a significant shift from previous years.

The remaining 40% consists of legacy contracts, approximately half of which are expected to be recognized as revenue during FY26. This transition towards more profitable contracts is expected to improve future earnings.

Looking ahead, ITM Power anticipates revenue between £35 million and £40 million for FY26, representing approximately 50% year-on-year growth.

The adjusted EBITDA loss is projected to narrow to between £27 million and £29 million as the company continues to fill its factory and realize revenue from legacy contracts. Year-end cash is expected to be between £170 million and £175 million, aligning with the company's capital-efficient scale-up strategy.