AFC Energy (AFC) H1 2025 earnings summary

Executive summary

• New leadership implemented a strategy shift to accelerate commercialization, targeting cost parity with diesel for offsite power by 2026 without government subsidies.

• Launched HY-5, the first portable ammonia cracker under a Fuel as a Service (FaaS) model, and formed key partnerships to validate technology and scale production.

• Signed a Joint Development Agreement with a major S&P 500 company and entered a joint venture with Industrial Chemicals Group to produce and sell hydrogen at disruptive prices.

Financial highlights

• Revenue for H1 FY25 was £17k, down from £408k in H1 FY24; loss after tax widened to £10.1m from £8.3m year-over-year.

• Operating costs increased to £11.8m (H1 FY24: £9.6m), including a £2.9m inventory write-off due to strategic shift; normalized operating costs would be £8.9m.

• Cash at 30 April 2025 was £4.3m, with £2.6m at 30 June 2025; £1.6m in R&D tax credits and £0.6m in grants expected in July 2025.

• R&D tax credit increased to £1.5m (H1 FY24: £1.1m) due to higher R&D spend as a percentage of total expenditure.

Outlook and guidance

• Focused on delivering low-cost, high-reliability 30kW hydrogen generators and Hy-5 crackers in 2026.

• Four major projects underway: packaging/certification of Hy-5 and next-gen generators, large-scale cracker development, and facility relocation to enable hydrogen sales.

• Commercial priorities include building the Hy-5 orderbook, selling hydrogen from pilot crackers, and supporting Speedy Hire deployments.