Half-year Results

Continuing to make considerable progress in line with the Board's expectations and beginning to build positive commercial momentum

H-Power plc (AIM: HPOW), a leading provider of ammonia-based low carbon hydrogen production and hydrogen-to-power solutions at a commercially viable price point, is pleased to announce its interim results for the half year ended 30 April 2026 (H1 FY26).

John Wilson, Chief Executive of H-Power, said:

"During the first half and post-period end, the business has continued to make considerable progress in line with the Board's expectations and begun to build positive commercial momentum. These successes further validate the significant value of our intellectual property, our ability to deliver to the timescales committed to and the clear realisation of end customer demand. Together with our strong balance sheet and a building order book, we remain confident of delivering scalable commercial success and creating significant value for our shareholders and stakeholders."

Corporate Highlights (including post-period developments):

• 5,000kg hydrogen sale agreement signed with Protium - the UK's first bulk green hydrogen sale from cracked ammonia
• Commencement of sale of hydrogen, from cracked ammonia, from Dunsfold site to customers
• 15 x LC30 (H-Power's latest hydrogen fuel cell generator) replenishment order received from Speedy Hire for Speedy Hydrogen Solutions joint venture, subject to CE certification
• Agreement with Speedy Hire to open H-Power depot within Speedy Hire flagship London Gateway depot, to serve anticipated demand for infrastructure projects
• Speedy Hydrogen Solutions JV expected to meet, if not exceed, target utilisation of generators by October 2026, following substantial increase in demand, with a commercial offering at price parity to diesel
• 2 x LC30 orders received from TAMGO, H-Power's exclusive MENA Region distribution partner, for extensive pre-deployment testing and customer trials
• CE certification of LC30 unit remains on track for August 2026
• Growing interest from multiple parties for long term deployments of HY5 decentralised portable cracker unit (capable of producing up to 500 kg of hydrogen per day)
• Continued strong engagement with S&P partner in identifying industrial use cases for hydrogen demand from decentralised ammonia cracking, with HY5 expected to be used as a "sales enablement tool" to demonstrate ease of decarbonisation to customers
• Joint Development Agreement signed with Komatsu (c.$2m initial contract value) to integrate H-Power's proprietary ammonia cracking technology with Komatsu diesel internal combustion engines
• Permit variation granted by UK Environment Agency to allow sale of hydrogen from cracked ammonia from H-Power's Dunsfold site
• Continued positive engagement and progress with our joint venture and strategic partners ICL and Volex
• Successful name change and rebranding of business from AFC Energy to H-Power to better reflect the business
• Substantial reduction in cash absorbed by operations (£7.5m (H1 FY26) vs £10.7m (H1 FY25)) despite significant increase in capitalised development spend (£4.0m (H1 FY26) vs £3.1m (H1 FY25))
• Cash of £17.4m at period end, with £3.2m of R&D tax credits expected to be received during H2 FY26

HY5 Ammonia Cracker Production and Commercial Interest

The development and launch of H-Power's HY5 decentralised portable cracker unit (capable of producing up to 500 kg of hydrogen per day) remains on track and will provide the lowest cost bulk fuel cell grade hydrogen (without the need for government subsidy) available to industrial customers, in the UK, by the end of calendar year 2026. This is continuing to lead to significant numbers of enquiries being made due to its ability to unlock the joint challenges of hydrogen logistics and hydrogen pricing.

Sale of 5,000 kg of Green Hydrogen from Cracked Ammonia

Following the UK Environment Agency granting a permit to enable the sale of hydrogen produced from our pilot ammonia cracker in Dunsfold, H-Power has entered into an agreement with Protium for the sale of 5,000 kg of green hydrogen, produced by H-Power's ammonia cracker facility, converting bio-ammonia into 99.97% ISO 14687 Grade D green hydrogen.

First commercial sale of bulk hydrogen to a third-party customer from cracked ammonia in the UK.

Protium to use H-Power's Dunsfold facility as a virtual depot facility in order to provide supply of hydrogen to its customers in the South-East of England.

LC30 - Orderbook Evolution and Certification

Following the launch of the LC30, continued engagement with current partners and ever increasing market demand, has resulted in a replenishment order from Speedy Hire (subject to CE certification which remains on track for August 2026) for our Speedy Hydrogen Solutions JV and from TAMGO for field-follow testing and in region customer trials. We aim to deliver these units by calendar year end as the process of operational scale up commences.

Outlook

With demonstrable fiscal discipline, H-Power remains well positioned to capitalise on emerging opportunities. The Board is greatly encouraged by the commercial momentum and increasing levels of end customer acceptance of new technology. The foundations of sustainable revenue growth are now in place as the business transitions to commercial delivery.

Ammonia supply and pricing

Despite the current geo-political risks and uncertainties, green ammonia supply has remained unaffected. Since the escalation of the Iran conflict, grey ammonia prices have been volatile, increasing by up to 60%, reflecting significantly higher gas prices. By contrast, green ammonia, which is not exposed to natural-gas feedstock but fixed cost renewable energy, has seen modest c.5% increases. This has resulted in a "decoupling" of green ammonia pricing, from grey, with costs for green ammonia from Asia currently quoted at a lower price than for grey ammonia. This strongly supports our FaaS ("fuel as a service") business model.

Key Financials

Chief Executive's Statement

With technology delivery remaining on track, the main business focus is commercial expansion and delivery. Sale of hydrogen from our cracker site to multiple parties, now including Speedy Hydrogen Solutions customers, serves to demonstrate demand for low cost, green hydrogen. Our ability to provide UK customers with a commercial offering with cost parity to diesel creates a credible zero emission alternative to incumbent technologies. Our offering, in conjunction with government legislation and concerns regarding the price and availability of diesel continues to create favourable conditions for emerging growth.

Scalability and supply chain resilience are key to the sustainable growth of our business. With the necessary foundations in place and relative stability of green ammonia pricing, we are well positioned to begin disciplined scaling in select, new geographies with growth opportunities. To facilitate this, we have commissioned a market study in the US to optimise our go to market strategy for our fuel cell generator product offering and we are further strengthening our commercial and marketing function accordingly.

In the US and mainland Europe, we envisage our go to market strategy will be delivered through a distribution-led model, partnering with distributors to leverage their end customer reach through extensive sales resources, and provision for in-country inventory for immediate deployment.

Our ability to unlock the joint challenge of hydrogen costs and logistical and transportation costs, has led to increasing industrial enquiries. This is being complemented by introductions being made by our S&P 500 partner, and our expectation is for the HY5 to serve the dual purpose of being an end product in its own right, for use cases requiring up to 3 tonnes/day of hydrogen, and as a "sales enablement tool" enabling deployment trials for larger scale industrial uses, to demonstrate ease of decarbonisation, prior to their commitment for large scale (>5 tonnes/day) crackers.

Our Komatsu JDA continues on track and we continue to explore further opportunities, in adjacent verticals, in which our proprietary technology can act as a technology differentiator.

Financial update

Overview

In the full year results presentation, the Directors set out the key deliverables for FY26 which were focused on (i) developing the technology on plan and on budget and (ii) proving there is a market for this technology. The first half of FY26 has been solely focused on the first objective in order that the commercial team have products to sell, enabling the second objective.

Although not presented in the statutory format (and with classifying short term deposits as cash rather than investments) the Directors set out the key elements of the cash flow statement as follows:

Cash absorbed by operating activities

Revenue was £0.2m (FY25 - £0.0m), representing sale of hydrogen and revenue generated from the Komatsu JDA, as the business continues to focus on delivering the technology roadmap. The gross loss is generated due to the company subsidising the cost of hydrogen to support the market acceptance of fuel cell generators through Speedy Hydrogen Solutions, prior to the transition from hydrogen supply from cracked ammonia in Dunsfold.

The reduction in cash absorbed by operating activities from £10.7m in H1 FY25 to £7.5m in H1 FY26 demonstrates the continued focus on (i) controlling cash and (ii) only investing in areas which have a direct route to shareholder value. Of the £7.5m absorbed in H1 FY26, £4.0m (54%) was capitalisable as development costs. This compares to only 30% in H1 FY25. This is a strong quantitative indicator that the cash the business is consuming is of 'better quality' than in prior periods. This has been supported by the cost base rationalisation programme which was undertaken in Q4 of FY25.

Financial Outlook

The business had cash reserves of £17.4m as at 30 April 2026. The company has submitted the FY25 tax return and is forecast to receive £3.2m of R&D tax credits in H2.

STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 April 2026

All amounts relate to continuing operations. There were no items of other comprehensive income during the period.

The above unaudited statement of comprehensive income should be read in conjunction with the accompanying notes.

STATEMENT OF FINANCIAL POSITION

As at 30 April 2026

The above unaudited statement of financial position should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 April 2026

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

SIGNIFICANT ACCOUNTING POLICIES

Details of the significant accounting policies are set out below.

Basis of preparation

These interim results for the six-months ended 30 April 2026 are unaudited. They have been prepared in accordance with IAS 34 'Interim Financial Reporting' in conformity with Companies Act 2006. These interim results have been drawn up using the accounting policies and presentation consistent with those disclosed and applied in the annual report and accounts for the year ended 31 October 2025. The comparative information contained in the report does not constitute the accounts within the meaning of section 435 of the Companies Act 2006.

A number of new or amended standards became applicable for the current reporting period. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

The Directors have prepared and reviewed forecasts for the period ending June 2027 which they consider to be the appropriate period for assessing going concern. Whilst events and conditions beyond this period of assessment have been considered. In the judgement of the Directors, such events and conditions do not require an extension to the period of assessment.

SEGMENTAL ANALYSIS

Operating segments are determined by the chief operating decision maker based on information used to allocate the Company's resources. The information as presented to internal management is consistent with the statement of comprehensive income. It has been determined that there is one operating segment, which researches and develops fuel cell and fuel conversion technologies. In the period to 30 April 2026, the Company operated mainly in the United Kingdom. All non-current assets are in the United Kingdom.

REVENUE

Other revenue 2026 relates to revenue recognised cost to cost basis in accordance with IFRS15, regarding the Komatsu JDA.

Rental income related to ongoing contract released overtime in accordance with IFRS15 to Acciona.

OPERATING COSTS

The operating costs consist of:

Occupancy costs include repairs and maintenance, utilities and lease payments.

NET FINANCE INCOME

LOSS PER SHARE

The calculation of the basic loss per share is based upon the net loss after tax attributable to ordinary Shareholders and a weighted average number of shares in issue for the period.

Diluted earnings per share: There are share options and warrants outstanding as at 30 April 2026 which, if exercised, would increase the number of shares in issue. However, the diluted loss per share is the same as the basic loss per share, as the loss for the period has an anti-dilutive effect.

INTANGIBLE ASSETS

Inventory is valued per IAS2 as the lowest of cost or net realisable value. The stock provision recognises the change in expected realisable value driven by management's view on the current market condition.

RECEIVABLES

There is no significant difference between the fair value of the receivables and the values stated above.

PAYABLES

The deferred revenue relates to non-refundable payments made under the November 2021 contract with ABB E-mobility (£1,423k). As part of the renegotiation of this contract in March 2023, it was agreed with ABB that this balance would be earned against pre-agreed discounts over the sale of the first ten units. The remaining (£2,092k) relates to grant income that is treated as a liability according to IAS20, and is released as other income to the income statement in line with amortisation of the associated development asset. The final (£215k) relates to a contract liability under the Komatsu JDA.

INVESTMENT IN JV

The company signed a Joint Venture Agreement ("JVA") with Speedy Hire plc ("SDY") in November 2023 which resulted in the creation of Speedy Hydrogen Services (SHS) limited ("SHS").

The company has assessed the relationship with SHS under IFRS11: Joint Arrangements and concluded that it is a joint venture. As the Company does not control SHS, it has not been consolidated into the Company's results.

SHS is owned 50:50 by the Company and SDY, with both parties providing initial funding via equity investments of £625,000. This investment, and any further investments, will be accounted for on a cost basis.

In addition to the JVA with SDY, the company signed a Supply & Maintenance Agreement ("SMA") with SHS under which it will supply goods, hydrogen fuelled generators, and services. The SMA has been assessed under IFRS15: Revenue from Contracts with Customers and the company has concluded, amongst other things, that SHS will be acting as principal in the purchase of generators from the company for onwards hire. All such transactions with SHS are at arms-length.

PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information contained in this interim statement does not constitute accounts as defined by the Companies Act 2006. The financial information for the preceding period is based on the statutory accounts for the year ended 31 October 2025. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies.

Copies of the interim statement may be obtained from the Company Secretary, H-Power plc, Unit 68.3 Dunsfold Park, Cranleigh, Surrey GU6 8TB, and can be accessed from the Company's website at