ITM Power has just posted its full year 2026 numbers, and the story is a clash between momentum in the business and pressure in the share price. The stock closed at £0.86 on 20 October 2026, after falling about 24% over three months, even as annual revenue reached £43.6m and adjusted EBITDA loss narrowed to £20.2m.
The market is trading the dream of green hydrogen with caution; however, the balance sheet tells a different story. Cash ended the year at £215.6m and the contract backlog of about £144m is now largely made up of work that management classifies as profitable.
Love the cash runway and order book at ITM Power but uneasy about the ongoing EBITDA loss and share price pressure? Take a look at our curated list of stocks with stronger balance sheets and clearer paths to profitability in the list of solid balance sheet and fundamentals stocks (9 results) .
FY 2026 Earnings Summary
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Revenue (FY 2026 vs. FY 2025):£43.647m vs. £26.04m (top line increased strongly year on year)
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Net Loss (FY 2026 vs. FY 2025):£24.992m loss vs. £45.515m loss (loss narrowed meaningfully)
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Basic EPS (FY 2026 vs. FY 2025):£0.040481 loss per share vs. £0.073735 loss per share (per share loss reduced)
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Adjusted EBITDA (FY 2026 vs. FY 2025):£20.2m loss vs. £33m loss (operating loss on this measure improved)
Skip the project finance jargon. Ask Charlie what ITM Power's first Hydropulse deal really signals .
Evaluating ITM Power's Execution Milestones
For the bullish view to work, ITM Power needs concrete progress on factory funding, standardised products and recurring revenue, not just optimism about green hydrogen.
"The main thing that has to go right is that ITM Power converts its expanded multi gigawatt sales pipeline and early build own operate agreements into delivered projects that support a shift from ongoing EBITDA losses to a sustainably profitable operating model."
Record revenue of £43.6m, a smaller adjusted EBITDA loss of £20.2m and a £144m backlog that is 83% classified as profitable all point to movement in that direction. Hydropulse's 150 MW Heads of Terms strengthens the early build own operate pipeline, although it remains pre FID and therefore not yet a delivered cash source.
That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for .
ITM Power: Fixed Cost Fears Meet Partial Progress
Bearish investors argue that ITM Power is loading up on fixed costs long before the earnings base can carry them.
"Despite policy support for large scale green hydrogen build out and a growing project pipeline for ITM Power, the planned £120m CHRONOS manufacturing line with bespoke automation risks locking in a high fixed cost base well ahead of proven demand for that capacity."
FY 2026 revenue of £43.6m and an adjusted EBITDA loss that shrank to £20.2m show better operating leverage. However, guidance for another £17m to £20m EBITDA loss in FY 2027 confirms that fixed costs are still biting. Government support of £86.5m eases funding strain, but CHRONOS has no commercial launch date, so the core concern about underused capacity is not resolved by this set of results.
Hunt For Mispriced Execution Stories
ITM Power shows how progress on operations and share price do not always move together. The real opportunity could sit in stocks the market has not fully valued yet.
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Company 1 - 25% below our estimate - builds advanced defence systems as long duration programmes expand a multi decade order backlog.
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Company 2 - 38% below our estimate - sells surgical robots and implants as recent product launches capture more procedure volume.
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Company 3 - 32% below our estimate - supplies specialised defence sensors and software as autonomous systems increase electronic content per platform.
That is three of the list. See the full list of 7 companies trading below our fair value estimates →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ITM.aim .
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