Turbogen (TURB) H2 2025 earnings summary

Executive summary

• Transitioned from R&D to initial serial production, securing a key supply agreement with a European turbine manufacturer and advancing negotiations with additional suppliers for both stationary and mobile systems.

• Completed a strategic partnership with a major international defense company for joint development and supply of microturbine-based energy systems, expanding potential markets.

• Raised approximately ₪26 million through private placements and option exercises, and secured an additional $7.5 million capital commitment, contingent on Nasdaq dual listing.

• Submitted a public registration statement to the SEC for Nasdaq dual listing, with completion expected in Q2 2026, delayed from Q1 due to regulatory holdups.

• Successfully completed a 100% hydrogen combustion chamber test at the Technion, marking a significant technological milestone.

Financial highlights

• Net loss for 2025 was ₪73.5 million, up from ₪21.1 million in 2024, driven by increased R&D, share-based compensation, and financing costs.

• R&D expenses rose to ₪6.0 million (2024: ₪5.2 million); general and administrative expenses surged to ₪22.6 million (2024: ₪5.4 million), mainly due to share-based payments.

• Cash and cash equivalents at year-end 2025 totaled ₪12.6 million, up from ₪1.2 million at end-2024, reflecting capital raises.

• No revenues were recognized as the company remains pre-commercial.

• Adjusted EBITDA loss was ₪20.3 million for 2025, compared to ₪9.3 million in 2024.

Outlook and guidance

• Plans to install 5–10 demonstration systems in the US and Europe in 2026, with initial commercial deployments targeted.

• Expects to complete production and installation of 12 TR3200 systems and advance mobile energy system development.

• Anticipates continued investment in R&D (~₪8.5 million in 2026) and further expansion of strategic partnerships.

• Management believes post-fundraising resources will support at least 24 months of operations and business plan execution.