© ITM Power / Shaun Flannery
© ITM Power / Shaun Flannery
ITM Power is now positioned to deliver profitability, but it needs more customers to make final investment decisions (FID) on hydrogen projects, according to the firm’s CEO.
Today (August 15), the UK electrolyser manufacturer posted strengthened financial results for the year ended April 30, 2024, seeing a threefold increase in revenues to £16.5m ($21.2m), in line with its £10-18m ($12.8-23.1m) guidance.
Its adjusted EBITDA loss narrowed significantly from £94.2m ($121m) in FY2023 to £30.4m ($39m) in FY2024, ahead of its £45-50m ($57.8-64.2m) guidance.
ITM has attributed the positively moving financial cash position to the completion of the 12-month plan announced in January 2023 to steady the ship after an “unacceptable” financial performance.
Read more: ‘Headcount reduction’ expected at ITM Power following financial losses
Coming as Dennis Schulz’s first full financial year as CEO, he said the plan has “transformed ITM into a credible delivery organisation.”
“We also have achieved a shift in culture of doing things right the first time, and prioritising quality over quantity, which is becoming increasingly evident in our day-to-day operations.”
ITM Chair Sir Roger Bone, said that operationally, ITM is in “better shape than ever.”
Schulz claimed the company’s path to profitability is “no longer a question of capability, but now a question of volume of customer orders.”
“The foundations we have laid will enable ITM to build long-term value,” he continued. “We are ready. Now we need more customers to take FIDs.”
The results follow a period of large-scale manufacturing capacity reservations for the firm. Last week, Shell took FID on a 100MW green hydrogen plant that will use ITM’s electrolyser technology.
Read more: Shell secures ITM electrolyser stacks following FID on green hydrogen plant
Looking ahead to 2025, the company expects to increase its revenues to between £18m ($23m) and £22m ($28.3m) but has warned that revenue recognition for sales of its 2MW Trident skids, is dependent on EPC integrator and/or end customers outside of its control.
“Without customer delays, the revenue guidance would have been in the range of £35-40m ($45-51.4m), with the delta being deferred into future periods,” it said.
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