ITM Power Hit by ThyssenKrupp Warning Despite Robust Sector Underpinnings

ITM Power shares fell 6.8% after ThyssenKrupp Nucera cut forecasts, but Plug Power's growth and record clean energy investment suggest accelerating end-market demand.

A sharp divergence has opened up between ITM Power’s stock performance and the broader health of the hydrogen industry. Shares in the Sheffield-based electrolyser maker slid 6.8% on Tuesday to 156.80 pence, dragged lower by a sobering update from German rival ThyssenKrupp Nucera. Yet at the same time, competing data from Plug Power and record capital flows into clean energy storage suggest the end-market demand that ITM Power depends on is still accelerating.

ThyssenKrupp triggered the sell-off on 12 May, slashing its revenue forecast for the current fiscal year on weak demand in core segments and a more cautious international outlook. The key blow for ITM Power came via its subsidiary Nucera, a direct competitor in electrolysers, which is now rethinking its business model as sales volumes stall. That shift has cast doubt on whether the global hydrogen market can grow fast enough to sustain the high valuations baked into the sector.

For ITM Power, the setback comes on the heels of a spectacular run. The stock had more than quadrupled over the previous twelve months, hitting a high of 179.70 pence in early May. Even after this week’s retreat, the shares are still trading on a price-to-sales multiple for 2026 that some analysts estimate at between 22 and 38 — a level that leaves little room for disappointment on industry growth rates.

That valuation becomes harder to justify when a key rival is pulling back. But ITM Power has been building its own case for expansion. In April it locked down an £86.5 million financing package for the “Chronos” project, with £40 million coming from Great British Energy and another £46.5 million in grant funding from the UK energy ministry. A separate partnership with Rheinmetall AG, announced the same month, targets the “Giga PtX” initiative — a decentralised network for producing synthetic fuels in Europe, giving ITM Power a pathway into the defence-linked fuel market.

The positive signals are not limited to ITM’s own deals. Across the Atlantic, Plug Power turned in a standout quarter, with group revenue climbing 22% to $163.5 million. Its electrolyser segment was the star, generating nearly $41 million in sales — a multiple of the year-ago figure. Plug also narrowed its gross margin to minus 13%, evidence that the industry’s cost discipline is starting to pay off.

The financial environment for green infrastructure remains supportive. Global investment in energy storage companies hit $2.3 billion in the first quarter, of which $1.2 billion came from venture capital. Project developers transferred 7.2 gigawatts of capacity to new owners, more than three times the volume in the same period last year. Siemens Energy added to the upbeat mood by raising its full-year guidance after booking €17.7 billion in orders.

Closer to ITM Power’s home market, the UK’s National Wealth Fund is pushing ahead with grid expansion. A giant vanadium-flow battery storage system recently began operations in East Sussex, part of a systemic build-out that will eventually be essential for integrating electrolysers into the power system.

Technically, traders are watching the 150 pence level as a potential support zone. Analyst opinion remains split, with individual price targets ranging as high as 200 pence while others are more cautious. The consensus sits between “hold” and “moderate buy”. The next major test for the stock will be whether large-scale contracts — such as the 300 MW supply agreement for the Asia-Pacific region — can validate the growth story and outweigh the bearish shadow cast by Nucera’s strategic retreat.