Ceres Power confidence up as demand for power grows and loss narrows

Ceres Power Holdings PLC on Wednesday said it was seeing encouraging commercial momentum across its partner network as it reported a narrowed half-year loss.

The Horsham, England-based clean energy technology developer reported a pretax loss of £15.4 million for the six months ended June 30, reduced from £19.0 million a year earlier.

Revenue rose 8.0% to £22.8 million from £21.1 million. This was in line with expectations, the company said, following its recognition of revenue under the manufacturing licence agreement signed with China's Weichai Power Co Ltd in November 2025.

Gross profit slipped 3.0% to £16.1 million from £16.6 million, with gross margin falling to 71% from 79%.

Operating costs fell 14% to £30.7 million from £35.6 million, following "the 2025 cost base rationalisation and ongoing financial discipline", the company explained.

Its adjusted earnings before interest, tax, depreciation and amortisation loss narrowed to £6.8 million from £11.3 million, driven by increased revenue and the company's reduced underlying cost base, but partly offset by the lower gross margin, it explained.

Ceres said it raised gross proceeds of £102.6 million through an oversubscribed equity issue in June, with net proceeds of £99.1 million. Cash, cash equivalents and short-term investments totalled £172.0 million at June 30, up from £83.3 million at the end of 2025.

Ceres highlighted commercial momentum across its partner network, with the UK's Centrica PLC targeting UK and European on-site power demand, South Korea's Doosan Corp signing a £60 million supply deal with Reverion, Taiwan's Delta Electronics Inc approving a £240 million fuel cell plant investment, and Weichai targeting 200MW of capacity by end-2027.

Ceres Power reiterated that contracted group revenue for 2026 is around £45 million before any new business and said it remains confident it will sign one new licensee partner during the year, which could provide additional revenue.

Chief Executive Officer Phil Caldwell commented: "Demand for power continues to grow, while the time required to secure new generation and grid capacity is becoming an increasing challenge for customers. Against this backdrop, we are seeing encouraging signs of commercial momentum across our partner network, including the first examples of downstream demand for products using Ceres' technology."

Caldwell said these developments validate the scale of the opportunity and the use of solid oxide technology in reducing the time-to-power challenge. Combined with a stronger balance sheet, this "gives us confidence in our ability to capitalise on the significant opportunity ahead," he added.

Shares in Ceres were up 0.9% at 436.20 pence per share on Wednesday morning in London.

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