AFC Energy (AFC) H2 2025 earnings summary

Executive summary

• Strategic reset focused on cash preservation, cost reduction, and commercial viability without reliance on government subsidies.

• Launched new products: Hy-5 portable cracker and LC30 fuel cell generator, targeting large addressable markets.

• Secured key partnerships and joint ventures, including with ICL, Volex, and an S&P 500 company, to expand technology deployment and manufacturing.

• Raised GBP 27.5 million gross to fund strategic initiatives and reduced headcount by 20% to streamline operations.

• Focus for the coming year is on converting a growing commercial pipeline into contractual orders to drive revenue growth.

Financial highlights

• Loss before tax of GBP 22.2 million, impacted by GBP 12.4 million in non-cash items and one-off charges.

• R&D spend increased to GBP 11.7 million, with GBP 5.2 million capitalized; expected R&D tax credits of GBP 3.3 million in FY26.

• Cash burn reduced to GBP 15.4 million, down GBP 11.2 million year-over-year.

• Ended the year with GBP 25.3 million in cash, providing significant runway.

• Sales were negligible (GBP 100,000) due to strategic shift away from AR2 units.

Outlook and guidance

• Committed to delivering 15 LC30 units by October 2026, with potential to scale up if order backlog strengthens.

• Capacity exists for up to 6,000 LC30 units per year, limited by fuel cell availability.

• First Hy-5 unit with ICL expected to be commissioned in November; production capacity for Hy-5 is about 50 units per year.

• No material uncertainty statement in latest audit; sufficient cash for at least 18 months, with future fundraising dependent on order book by September 2027.