Invinity Energy Systems (IES) H1 2026 earnings summary

Executive summary

• Orders in H1 2026 surged nearly threefold year-on-year to over 34.2 MWh, with a forward order book just under 80 MWh and post-period orders reaching 77.2 MWh, excluding the major FlexBase contract.

• Major project milestones included delivery of a 20.7 MWh system to Copwood VFB Energy Hub (Europe's largest) and selection for the FlexBase Group's 1.5 GWh project in Switzerland, with engineering milestones on track.

• Technology based on proven vanadium flow batteries, with over 2,000 units delivered and 11+ GWh dispatched since 2022, serving datacentres, energy-intensive industries, grids, and governments worldwide.

• Commercial focus sharpened on three core segments: standalone/co-located LDES, commercial/industrial sites, and AI infrastructure, where the company claims material advantages over incumbents.

• The company is transitioning from a technology leader to a commercially scaling business, supported by a robust pipeline and cost reduction initiatives.

Financial highlights

• Revenue and project grant income rose 97% year-over-year to £1.7m in H1 2026 (H1 2025: £0.8m), driven by increased project deliveries.

• Gross loss reduced by 62% to £0.7m (H1 2025: £1.9m), reflecting improved margins from cost reduction and higher manufacturing activity.

• Net loss increased 14% year-over-year to £12.1m, mainly due to higher R&D and administrative expenses.

• Net cash at 30 June 2026 was £10.5m, down from £28.8m at year-end 2025, mainly due to operating cash outflows and investment in Copwood.

• Warranty costs fell from £0.9m to £0.2m due to improved component performance and lower product costs.

Outlook and guidance

• The committed orderbook exceeds 77 MWh for delivery through FY 2026-2028, covering most of FY 2026 and over half of FY 2027 revenue expectations.

• Pipeline risk-weighted at just under 13 GWh, with North America as the largest opportunity due to strong incentives and local manufacturing plans.

• Targeting a 5x increase in market share to nearly 5% of the global flow battery market by FY28, based on independent forecasts.

• Revenue recognition for FY26 expected to be heavily weighted to H2.

• Additional orders are expected from 0.8 GWh of signed frameworks and an 11.8 GWh development pipeline, supporting medium-term revenue visibility.