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ITM Power shares surge on major contract win

Published 12/05/2025, 09:44
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ITM
-7.59%

Investing.com -- Shares of ITM Power PLC (LSE:ITM) leaped 14.2% following the announcement that the company has secured a contract to supply over 300MW of electrolyser equipment for a significant green hydrogen project in the Asia-Pacific region.

This deal, considerably larger than the current norm of sub-50MW contracts, is expected to generate substantial revenue and confirms ITM Power’s growing momentum in the industry.

The undisclosed project, which has already secured funding approval and is awaiting a final investment decision (FID), involves the decarbonization of a thermal power plant.

The client aims to use renewable energy to produce green hydrogen, which will then be utilized to generate electricity with a reduced or neutral carbon footprint.

This development marks a considerable stride forward for ITM Power, which has been recognized by RBC Capital Markets as a new sector preference following their first-quarter wrap and fiscal year themes report.

RBC analysts have estimated that the contract could yield revenue in the range of £125-250 million for ITM Power from the end of April 2028, assuming the FID is confirmed in the fiscal year 2026.

While this forecast does not impact RBC’s valuation of the company, as they base electrolyser manufacturers’ worth on a two-year forward sales multiple, it is undeniably a positive and significant announcement.

It underscores the commercial and operational progress of the Sheffield-based manufacturer and supports RBC’s choice of ITM as a sector favorite.

RBC said ITM Power has emerged as its new sector preference, citing a series of recent landmark contracts that suggest the company is regaining credibility in the challenging electrolyser market.

The broker noted that ITM’s improved commercial offering strengthens its position within RBC’s Green Hydrogen investment framework, leading it to reiterate its Outperform rating.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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