Invinity Energy Systems (IES) H2 2024 earnings summary

Executive summary

• FY24 was a transition year marked by the shift from VS3 to ENDURIUM, with first ENDURIUM shipments and strong customer feedback, especially from Gamesa Electric.

• Revenues declined by 77% year-over-year to £5.0 million, reflecting the product transition and timing of sales cycles.

• EBITDA loss improved 20% year-over-year to £18.0 million, with net loss slightly reduced to £22.8 million.

• Total cash and investments rose to £35.4 million, and the group remains debt free.

• Battery storage market is rapidly expanding, with increasing regulatory and commercial support for long-duration storage globally.

Financial highlights

• Revenue and grant income dropped from £22.0 million in 2023 to £5.0 million in 2024 due to the transition from VS3 to ENDURIUM.

• Gross loss increased to £3.5 million, mainly due to warranty costs and new facility overheads.

• Gross margin loss improved from -20% to -8% year-over-year.

• Operating expenses rose 7% year-over-year, driven by R&D investment.

• Year-end cash position was £35.4 million, with £5 million ring-fenced for LDES and £8m-13m forecasted at year-end 2025.

Outlook and guidance

• Substantially all projected 2025 revenue is covered by four major projects currently in manufacturing.

• Large-scale projects in negotiation for 2026 and beyond, with a strong pipeline in the U.S., U.K., Europe, and Asia.

• Anticipates significant volume growth through 2030, driven by participation in global LDES procurement schemes.

• Ongoing focus on cost reduction, with a roadmap to achieve 70% cost reduction by 2030 from ENDURIUM launch levels.

• Partnerships will be key to boosting order volume, reducing costs, and accessing new markets.