ITM Power raised its FY26 revenue guidance to £40 million to £43 million, up from £35 million to £40 million, driving a 4% stock jump. The revision reflects improved project execution and accounting changes, per RBC Capital Markets, though EBITDA losses remain at £27 million to £29 million. Net cash is still forecast at £170 million to £175 million, with no material shifts in operational guidance.

RBC noted the update signals stronger delivery capabilities but cautioned that some lossmaking projects—already provisioned—contribute to the upward revision. The firm emphasized no leverage risks, as losses are covered by existing reserves. Analysts highlighted the move as “slightly positive” amid green hydrogen sector volatility.

The stock’s reaction underscores market optimism about ITM’s hydrogen electrolyzer demand, critical to decarbonizing industrial processes. Unchanged guidance on other metrics suggests confidence in long-term strategy despite near-term volatility. Investors appear to prioritize the revenue upside over persistent EBITDA headwinds.

With hydrogen infrastructure investments surging, ITM’s revised outlook positions it as a key player in the £200 billion global green hydrogen market. Analysts warn, however, that execution risks remain, particularly for projects yet to reach profitability. The firm’s ability to balance growth and margins will determine its trajectory in 2026.