ITM Power (LSE:ITM) has increased its revenue forecast for the 2026 financial year to between £40 million and £43 million, lifting the midpoint of guidance by around 11% from its prior £35 million to £40 million range. The revision reflects strong progress across projects and the implementation of percentage-of-completion accounting, enabling revenue recognition over the duration of contracts, including recently won agreements.
While revenue expectations have moved higher, the company has kept its adjusted EBITDA and cash guidance unchanged, signalling continued discipline on costs and liquidity management. Management pointed to growth in its firm contract backlog and sustained momentum across its sales pipeline, reinforcing confidence in its commercial traction within the green hydrogen equipment market.
Operational updates, including record first-half revenue and improving backlog quality, suggest forward momentum. However, the broader outlook remains weighed by ongoing losses and negative operating and free cash flow. The share price continues to trade below key moving averages, indicating a bearish technical backdrop. A relatively low-leverage balance sheet offers some support, but execution risks around profitability and cash timing persist in the near term.
More about ITM Power
ITM Power, founded in 2000 and listed on London’s AIM market since 2004, is a UK-based manufacturer of proton exchange membrane (PEM) electrolysers used to generate green hydrogen from renewable electricity and water. Headquartered in Sheffield, the company supplies technology aimed at supporting the transition to net-zero energy systems and advancing the global green hydrogen economy.
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