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Investing.com -- Shares of ITM Power (LON:ITM) leapt by 10.75% after the company on Tuesday announced a significant increase in its revenue and cash guidance for fiscal 2025.
The revised forecast suggests revenues between £25.5 million and £26.5 million, marking a 30% rise from the midpoint of its previous range of £18 million to £22 million.
The year-end cash projection has also been increased to £204 million to £205 million, compared to the earlier estimate of £185 million to £195 million.
This optimistic financial outlook comes despite the company maintaining its adjusted EBITDA loss guidance at £32 million to £36 million, as the increased revenue is associated with legacy projects that have contract loss provisions and are not expected to contribute positively to margins.
These projects were initiated under previous management, and ITM Power now anticipates future backlogs to be margin accretive, excluding the Lingen/RWE projects.
RBC analysts have weighed in on ITM Power’s prospects, highlighting the significance of recent landmark contracts that have bolstered the firm’s position in the competitive market for electrolyser manufacturers. "Landmark contracts announced over the past few months show the firm has managed to regain credibility in a complex market for electrolyser manufacturers."
RBC recently lowered its delivery trajectory for the rest of the decade based on more cautious delivery assumptions. The firm also reiterated its Outperform rating, citing stronger credentials within RBC’s Green Hydrogen investment framework.