ITM Power FY’26 First Take: strong results & business momentum with FY’26 results in-line with pre-release & FY’27 guidance better vs consensus

ITM Power's FY'26 results are in line with its pre-release, with revenue of £43.6m, adjusted EBITDA loss of £20.2m and cash of £215.6m. Management guided FY'27 revenue of £55-60m, EBITDA loss of £17-20m and year-end cash of £170-180m, with both EBITDA loss and cash roughly 7% better than Bloomberg consensus. Contracted backlog stands at £144m, of which about 83% by value is profitable (versus ~70% in H1'26), and we expect this to approach 100% by year-end 2027. Lingen 1 (100MW) is now operational and Lingen 2 (100MW) remains on schedule for commissioning this fiscal year; the launch of Hydropulse recently led to heads of terms for a 150MW project at a European refinery, with a possible FID in 2027. We expect the shares to react positively at the open. ITM trades on 9.0x/5.4x FY'27/28E EV/Sales, and net cash is ~34% of market cap. We reiterate our Neutral rating and 80p December-2027 price target.