Ceres Power Charts a New Strategic Course Amid Revenue Decline

Ceres Power launches cost cuts and a Centrica partnership to target data center energy demand after a 37% revenue drop. It aims for £45M in 2026 revenue.

Ceres Power is embarking on a significant operational overhaul. The company's management is prioritizing strict cost discipline and a fresh alliance with Centrica, aiming to address the substantial energy demands of data centers and industrial sectors through decentralized fuel cell technology. This strategic pivot follows a challenging fiscal period marked by a sharp drop in revenue.

Financial Performance and Cost-Cutting Initiative

The company's financial results for the fiscal year ending December 31, 2025, underscore the need for decisive action. Revenue fell 37% year-over-year to £32.6 million, resulting in a reported loss of £47.5 million. Despite these figures, Ceres Power maintains a solid financial foundation, with a cash position of £83.3 million.

To return to profitability, a comprehensive transformation program has been launched. The plan targets a 20% reduction in operating costs by 2026. A key component of the future growth strategy is the licensing model, which is already yielding initial results. The commencement of production by a partner in South Korea allowed Ceres to record its first license royalties. For the current 2026 financial year, management anticipates contractually secured revenue of approximately £45 million.

Strategic Alliances and Target Markets

A cornerstone of the renewed strategy is the recently announced partnership with Centrica. The collaboration is designed to develop the market for solid oxide fuel cell and electrolyzer solutions across the UK and Europe. Management highlights the expanding demand from data center infrastructure as a particularly significant opportunity.

In parallel, Ceres is advancing its global network of manufacturing partners to accelerate the scaling of its technology:
* South Korea: Doosan has initiated mass production.
* Taiwan: Delta is investing in manufacturing facilities and developing prototypes.
* China: The collaboration with Weichai continues.
* Japan & India: Joint testing programs are underway with Shell, JERA, and DENSO.

The company's stated objective is to finalize one new licensing agreement per year. This is considered the most critical factor for achieving cash flow neutrality in the medium term. Further details regarding the strategic roadmap and future scaling plans will be presented at the Ceres Power Capital Markets Day on April 15, 2026.