Ceres Power (CWR) H2 2024 earnings summary

Executive summary

• Achieved record revenue, order intake, and gross margin for the year ended 31 December 2024, driven by major licensing agreements, technology transfers, and global partner expansion despite economic headwinds and Bosch's withdrawal from SOFC manufacturing.

• Licensing model and global partnerships, including new manufacturing licensees in Taiwan, Japan, and India, drive growth in both power generation and green hydrogen markets.

• Portfolio of manufacturing and system partners provides resilience and mitigates risks from individual partner changes.

Financial highlights

• Revenue reached £51.9 million, a record high, up 132% year-over-year, with gross profit of £40.2 million, up 196% from 2023.

• Gross margin increased to 77% from 61% in 2023, reflecting the efficiency of the licensing model.

• Order intake surged to £112.8 million, mainly from major licensing deals with Denso and Delta.

• Cash and short-term investments at year-end were £102.5 million, supporting ongoing operations and growth.

• Adjusted EBITDA loss narrowed to (£22.3m) from (£50.3m) in 2023.

Outlook and guidance

• 2025 revenue expected to be broadly similar to 2024, contingent on signing at least one new license deal, with cash burn projected at £20–25 million.

• First royalty revenues anticipated from Doosan in 2025, with Delta and Denso royalties expected from 2027 onward.

• Cash break-even possible if two new licenses are signed in a year.

• Continued cost discipline and restructuring expected to reduce costs further in 2025.

• Positioned for significant growth from existing and future partnerships.