End in sight for ITM’s loss-making projects as its order backlog rises 12%
Source：hydrogeninsight
British electrolyser manufacturer ITM Power has posted an order backlog of £152m ($210m) — 12% higher than it reported a year ago and increasingly furnished with profitable contracts, the company said today (Monday).
ITM, which makes proton exchange membrane (PEM) electrolysis equipment, has seen the burden of legacy loss-making contracts put an overall drag on its profitability.
But in its interim results for the six months to 31 October 2025, the company said that these now make up just 29% of its order backlog, down from 40% in April 2025.
The remaining legacy non-profitable projects, which ITM described as “fully provided for” (ie, funds have already been committed), are expected to be recognised as revenue over the next 18 months.
This means that by mid-2027 the company could be expected to see a significant boost to its profitability.
ITM had posted an order backlog of £135.3m in early 2025, in its results for April to October 2024.
The latest interim results confirmed previously reported losses for the April to October 2025 period of £11.9m, a 23% reduction on the previous half-year.
Revenues were also unchanged from December’s “unaudited” trading update, at £18m, as were full-year revenue and loss forecasts of £35-40m and £27-29m, respectively.
Cash reserves were also down slightly on the £203.1m reported in the 2024 half-year, to £197.8m, and were expected to reduce further to £170-175m by the time ITM posts its full-year results in August.
During the fourth quarter (July-October) ITM launched its 50MW Alpha PEM green hydrogen plant with a price tag of €50m ($60m), which it believes will be cheaper than same-sized systems built in Europe using low-cost Chinese alkaline electrolyser stacks.
“We have yet again delivered our strongest six-month revenue performance to date while maintaining strict cash and operational discipline,” said ITM CEO Dennis Schulz.
“Commercial activity has progressed well with the award of multiple equipment supply contracts, several engineering contracts, a significant capacity reservation from RWE, an important repeat customer, and beyond that our selection as electrolyser provider for several other upcoming projects.
“This progress underpins customer confidence and market traction in an environment which had to fight with known headwinds.”
The company executed a 12-month cost-cutting programme in 2023, shortly after Schulz took the helm, which saw it slash its product line by three quarters to just four PEM electrolyser stacks and modules. The firm also sold its stake in hydrogen refuelling company Motive Fuels and reduced its workforce by 30%.