ITM Power's Order Book Turns Profitable as Cash Reserves Underwrite a 150MW Refinery Bet
Published on 10/20/2026 at 15:11 | Editorial boerse-global.de
Shares in ITM Power slipped 2.8% to EUR 1.02 on the day, a modest pullback that leaves the British hydrogen specialist trading well below its 52-week high of EUR 2.58 — and, at EUR 1.04, beneath its 200-day moving average of EUR 1.20. Yet the year-to-date picture tells a different story: the stock is up 43% since January, a rally that has tracked the company's slow, deliberate crawl back toward commercial viability.
That recovery rests on two pillars. The first is the state of the order book. At the close of fiscal 2026, ITM Power carried GBP 144.0 million in contracted work, and the quality of that backlog has improved markedly: profitable contracts now account for 83% of the total, up from just 60% in April 2025. The shift is the clearest evidence yet that management's push to abandon low-margin legacy work is bearing fruit, replacing the drag of unprofitable historic deals with a foundation capable of supporting a sustainable business.
The second pillar is the balance sheet. ITM Power ended the period with GBP 215.6 million in liquid funds, a cushion that gives the electrolyser maker room to keep advancing its technology without an immediate scramble for capital. Revenue for fiscal 2026 climbed 68% to GBP 43.6 million, while the adjusted EBITDA loss narrowed 39% to GBP 20.2 million — a smaller shortfall on a much larger sales base.
Should investors sell immediately? Or is it worth buying ITM Power?
Guidance Points to Further Loss Reduction
Management's targets for fiscal 2027 sketch out the next stage of that trajectory. Revenue is guided to a range of GBP 50 million to GBP 60 million, with the adjusted EBITDA loss expected to shrink further to between GBP 17 million and GBP 20 million. The cash position, however, is forecast to fall to GBP 170 million to GBP 180 million by the end of that period — a reminder that manufacturing outlays will keep consuming funds until larger projects reach the commercial stage. Cost discipline, in other words, remains as important as order intake.
Where that intake comes from matters enormously. Industrial-scale ventures, particularly tie-ups with partners from the traditional energy sector, are the clearest signal that ITM Power's equipment can hold up in real-world deployment.
Hydropulse Deal Sets the 2029 Horizon
The flagship example is Hydropulse, a green hydrogen project planned alongside a European oil refinery. The 150-megawatt facility, which would deploy ITM Power's Alpha platform under a ten-year contract, is currently in front-end engineering and design, with financing talks under way. A final investment decision is targeted for 2027, and commercial production is earmarked for 2029.
The groundwork was laid roughly a week ago, when Hydropulse signed a heads of terms agreement with the refinery operator. Plenty of time separates that preliminary accord from shovels in the ground — which is precisely why the market's attention now hinges on whether ITM Power can convert large-scale preliminary agreements into binding orders on schedule, and whether it can land the revenue range it has set for 2027. Until those questions are answered, the gap between the stock's 43% year-to-date gain and its distance from both its 200-day average and its 52-week peak captures the tension investors are weighing: real operational progress, against a cash burn that has yet to run its course.
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ITM Power Stock: New Analysis - 20 October
Fresh ITM Power information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
