Ceres Power (CWR) H1 2025 earnings summary

Executive summary

• Achieved major commercial milestones, including Doosan's start of SOFC mass production in South Korea and Delta Electronics' £170 million commitment to hydrogen manufacturing in Taiwan.

• Shell's megawatt-scale demonstrator began producing hydrogen in India; Thermax launched HydroGenX Hub for green hydrogen technology.

• Transitioned from R&D to commercialisation, supported by a business transformation initiative to align resources for commercial execution and reduce operating expenses by 20% by end of 2026.

• Entered the commercialisation phase with a strong balance sheet and positive cash inflow during the period.

• Introduced a single stack platform to serve both power and hydrogen markets, streamlining R&D and supply chain efforts.

Financial highlights

• H1 2025 revenue was £21.1m, down 26% year-over-year due to prior one-off licence revenue; gross profit was £16.6m, with a gross margin of 79%.

• Cash and short-term investments increased to £104.1m at 30 June 2025, with a positive cash inflow of £1.6m in H1 2025.

• Adjusted EBITDA loss was £11.3m, compared to £9.0m in H1 2024; operating loss before exceptional costs was £17.2m.

• Achieved a 17% reduction in OpEx and CapEx, surpassing the initial 15% target.

• Order intake dropped to £0.9m from £46.9m in H1 2024.

Outlook and guidance

• FY 2025 revenue expected to be around £32m, with potential upside from new manufacturing licence agreements under negotiation.

• Focused on near-term commercial power market opportunities, especially for AI-driven data centres and grid reinforcement.

• Business transformation programme aims for a 20% reduction in operating expenses by end of 2026, with the first phase completed by year-end.