H-Power Halves Loss and Lands Saudi Generator Deal as It Pivots to Commercial Scale

Hydrogen fuel-cell developer H-Power (ex-AFC Energy) halves first-half loss to £5.8m, ships first LC30 generators to Saudi Arabia, but shares slide 6% as market awaits recurring revenue.

A hydrogen fuel-cell developer that used to be known as AFC Energy is making progress on two fronts at once – slashing its losses while securing its first significant order under a new name. Yet the stock market remains unconvinced.

H-Power plc, the newly branded successor to AFC Energy, posted a first-half net loss of £5.8 million for the period through April 2026, roughly half the £10.1 million deficit of a year earlier. Operating expenses fell to £7.97 million from £11.76 million, and the loss per share narrowed to 0.51 pence from 1.19 pence. The improvement came even as capitalised development costs rose to £4.0 million, bringing the cumulative total on the balance sheet to £13.5 million.

The company’s revenue, however, remains modest at £253,000, generated entirely from its joint development contract with Komatsu and recognised under IFRS 15. Far more closely watched by investors is the cash burn. Operational cash outflow dropped to £7.5 million from £10.7 million a year earlier, partly because £4.0 million of that outflow was capitalised. At period end, H-Power held £17.4 million in liquid assets – split between £8.25 million of cash and £9.19 million of short-term investments. An additional £3.2 million in research tax credits is expected to land in the second half, providing a further cushion for the still pre-revenue business.

Alongside the financial results, H-Power announced it is shipping two LC30 fuel-cell generators to TAMGO in Saudi Arabia. The units are designed for harsh conditions, operating between minus 20 and plus 50 degrees Celsius – a critical feature for construction, mining and equipment rental applications in the Gulf region. This is not a first encounter: the company already deployed its technology at the Extreme E and Extreme H races in Saudi Arabia in 2025, giving TAMGO hands-on familiarity with the kit.

The Saudi deal fits a broader strategy to replace diesel generators with hydrogen solutions without relying on government subsidies. H-Power’s core offering combines modular ammonia crackers with fuel-cell generators, using ammonia as a carrier for green hydrogen that is cracked on-site. The Gulf Cooperation Council market is a natural target given its high energy demand, extreme climate and growing political pressure to decarbonise.

Despite the operational milestones, the shares have struggled to hold onto gains. The stock slipped around 6% today to €0.14, bringing the 30-day decline to roughly 17%. Year-to-date the shares still show a 22% gain, but they are trading nearly 30% below the 52-week high of €0.21 reached last June. Technical indicators such as the relative strength index, at around 40, suggest the stock is approaching but not yet oversold territory.

The pattern is familiar for small-cap hydrogen plays. The technology earns praise, the order book grows in fits and starts, but the market waits for recurring revenue streams rather than one-off deals. Management insists the foundations for series production are in place, pointing to the Komatsu agreement and now the TAMGO contract as evidence of commercial traction. Whether these deals represent the beginning of a pipeline or remain isolated wins will determine how quickly the market re-rates the stock. The next few quarters should reveal whether Saudi Arabia becomes a beachhead for broader Gulf business – or just another pilot project.