Invinity Energy Systems (IES) H2 2025 earnings summary

Executive summary

• Achieved a 66% reduction in Endurium product cost versus VS3, 18 months ahead of schedule, accelerating commercial traction and positioning for growth in global energy storage markets.

• Revenue and public grants reached £17.8 million, with YoY increases ranging from 2% to 239%, and improved gross margin and adjusted EBITDA.

• Tripled battery shipments year-over-year, with a six-fold increase in sales and a robust commercial pipeline across Europe, North America, and Asia.

• Major project wins include FlexBase in Switzerland, Copwood in the UK, and Project VITALITY in the U.S., enhancing credibility and reference sites.

• Dispatched over 9 GWh of energy globally, with 2,000+ modules deployed and a focus on third-party validation to improve bankability.

Financial highlights

• Revenue and grants totaled £17.8 million, including £9.1 million in approved grant funding and £8.2 million in customer revenue (+63% YoY).

• Gross margin improved by 35 percentage points year-on-year, from -70% to -35%, reflecting cost-down initiatives and project economics.

• Adjusted EBITDA improved 7% year-on-year, though the loss increased due to scaling activities.

• Cash and equivalents at year-end were £28.8 million, with a positive going concern assessment through June 2027.

• Net cash outflow from operating activities improved by 31% YoY; investing activities increased 631% due to key investments.

Outlook and guidance

• Positioned for accelerated growth with a robust pipeline, increasing inbound commercial interest, and expanded commercial opportunities in commercial, industrial, and datacentre segments.

• Continued cost optimization expected through value engineering, higher-volume manufacturing, and strategic outsourcing, targeting further cost reductions by 2030.

• Guidance remains cautious for the next couple of years, targeting sustainable growth and profitability.