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 new licensing agreements and technology transfers, with strong financial and operational performance despite economic headwinds.

• Expanded global partner portfolio with new manufacturing licensees in Taiwan (Delta), Japan (Denso), and India (Thermax), and progress toward first production in South Korea in 2025.

• Maintained sector-leading gross margin and strong financial position despite Bosch's withdrawal from SOFC manufacturing, impact mitigated by a diversified partner portfolio.

• Business model leverages unique, protected solid oxide technology for both power generation and green hydrogen, providing a natural hedge.

Financial highlights

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

• 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 Denso and Delta licensing deals.

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

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

Outlook and guidance

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

• Two new licensees would enable cash break-even for the year.

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

• Confident in reaching profitability and royalty-generating status without additional funding.