ITM Power’s £86.5m Government Bet Collides With a 212% Rally Driven by No News

UK government injects £86.5M into ITM Power, taking a 10.8% stake; shares rally 24% weekly on momentum, up 212% yearly, as order book reaches £152M and losses narrow.

The British government is taking a direct stake in ITM Power, injecting £86.5 million into the electrolyser maker in a move that transforms the company’s financial firepower. Yet even as the state commits to a 10.8% equity position, the stock has been charging higher on pure market momentum — with no fresh corporate announcement to explain the latest leg of a year-long surge.

Shares in the London-listed hydrogen company closed at 195 pence on 27 May 2026, representing a 24% weekly gain and a 212% advance over the past twelve months. The relative strength index stood at 73.37, nudging above the classic overbought threshold of 70. That rally, however, has been unfolding without a company-driven catalyst. The most recent official update from ITM Power came on 18 May, when it disclosed share purchases under its employee participation plan. Chief executive Dennis Schulz and chief technology officer Simon Bourne each acquired 92 partnership shares and received 92 matching shares at a price of 161.96 pence on 15 May. Since that notification the stock has climbed roughly 20% in the absence of any contract win, financing round or operational update.

A direct state entry

The government’s intervention provides a very different kind of support. Great British Energy, the state-backed energy investor, is paying £40 million for a 10.8% stake, making it ITM Power’s second-largest shareholder. A further £46.5 million will come as a grant from the Department for Energy Security and Net Zero, earmarked for expanding the company’s Sheffield manufacturing facility. The total package of £86.5 million marks the largest single investment yet by Great British Energy and signals a strategic shift in the UK’s approach to building industrial hydrogen capacity. Instead of merely offering incentives, the government is taking an ownership position.

The money is directed at the Chronos platform, ITM Power’s next-generation electrolyser. The company aims to raise nameplate capacity to one gigawatt by 2028, a step that would put it in contention as a serious player in the global green hydrogen race. The expansion is expected to create more than 400 jobs, cementing South Yorkshire as a production hub. Schulz described the backing as a signal that positions ITM Power as the natural partner for UK hydrogen projects.

Fundamentals that underpin the momentum

Beneath the headline share price action, the company’s financial trajectory has been improving steadily. In the half-year to 31 October 2025, ITM Power generated £18.0 million in revenue, up from £15.5 million a year earlier. Its adjusted EBITDA loss narrowed to £11.9 million from £16.8 million. The order book stood at £152 million — more than three times the level of two years ago — and 71% of contracts are now considered profitable, compared with 60% in April 2025. The balance sheet held £197.8 million in cash.

In February 2026 management raised its full-year revenue guidance to a range of £40 million to £43 million, up from the previous £35 million to £40 million. That revision, together with a burgeoning order book, has helped build a longer-term case for the stock.

Technical picture vs. execution challenge

The current share price sits well above both the 200-day moving average of 81 pence and the 50-day moving average of 117 pence, underscoring how sharply sentiment has turned. But the rally’s technical nature means it remains vulnerable until the company delivers on its promises around project delivery, revenue recognition and cost discipline. With the government now holding a boardroom seat via Great British Energy, attention will shift to how quickly ITM Power can scale the Chronos platform and convert its order pipeline into cash. Until the next quarterly update or a major commercial milestone lands, the stock is riding on momentum — albeit now with an £86.5 million state anchor.