Ceres Power (LON:CWR) Announces Earnings Results

Key Points

• Ceres Power reported quarterly EPS of negative GBX 8.58, alongside a negative net margin of 145.65% and negative return on equity of 39.26%.
• Management reiterated its £45 million contracted revenue guidance and expects to sign at least one new manufacturing licensee this year, supported by a growing pipeline across the U.S., Asia and Europe.
• Progress by existing partners and an oversubscribed equity raise of more than £100 million strengthened the company’s commercial outlook and balance sheet, although near-term revenue remains dependent on license fees and engineering services rather than royalties.

Ceres Power (LON:CWR - Get Free Report) released its earnings results on Wednesday. The company reported GBX (8.58) EPS for the quarter, Digital Look Earnings reports. Ceres Power had a negative net margin of 145.65% and a negative return on equity of 39.26%.

Here are the key takeaways from Ceres Power's conference call:

• Contracted revenue guidance of £45 million was reiterated, with roughly half delivered in the first half and management confident of achieving the balance in the second half.
• The partner pipeline has grown across the U.S., Asia and Europe, and Ceres remains confident of signing at least one new manufacturing licensee this year.
• Existing partners are progressing toward commercial scale: Doosan secured a roughly £60 million export order, Delta is developing a second Taiwan facility, and Weichai is targeting initial production soon with an ambition of 200 megawatts.
• Ceres reported progress in reducing its cost base and R&D spending following the launch of its Endura platform, while an oversubscribed equity raise of just over £100 million strengthened the balance sheet.
• Near-term revenue remains weighted toward license fees and engineering services, while royalties are not expected to become material until partners reach larger-scale production; management also noted that licensee signing and revenue-recognition timing can be unpredictable.

Ceres Power Trading Up 3.8%

Shares of LON:CWR opened at GBX 448.60 on Wednesday. Ceres Power has a 52-week low of GBX 119 and a 52-week high of GBX 872.50. The company has a debt-to-equity ratio of 2.24, a quick ratio of 12.18 and a current ratio of 3.27. The company has a market capitalization of £959.23 million, a P/E ratio of -18.30 and a beta of 3.00. The company has a 50-day simple moving average of GBX 398.55 and a 200 day simple moving average of GBX 474.93.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 920 price target on shares of Ceres Power in a research note on Wednesday, June 10th. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 950 target price on shares of Ceres Power in a research report on Wednesday. Two analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of GBX 935.

About Ceres Power

Ceres is a leading developer of clean energy technology: fuel cells for power generation and electrolysers for green hydrogen. Its asset-light, licensing model has seen it establish partnerships with some of the world's largest companies, such as Doosan, Delta, Denso, Shell, Weichai and Thermax. Ceres' solid oxide technology supports greater electrification of our energy systems, including AI data centres, commercial and industrial applications, and produces green hydrogen at high efficiencies as a route to decarbonise emissions-intensive industries such as ammonia, steelmaking and electrofuels.