The question behind the trading update

H-Power's trading update for the year to 31 October 2026, published on Monday 9 November, ended with a claim that matters more for the coming year than the headline sales figure: management said the commercial progress made during FY26 supports Revenue visibility for FY27.

The short answer is that visibility rests on three relationships, with Speedy, Komatsu and Protium, plus an unnamed large US partner. Only some of these carry disclosed values, and the most strategically important, the Protium ammonia cracker deal, is still at heads of terms stage.

About hydrogen and ammonia cracking

Hydrogen can be used in fuel cells to generate electricity without emissions at the point of use, but storing and moving it is difficult. One approach is to carry hydrogen in the form of ammonia, which is easier to transport, and to separate it back into hydrogen at the site using a cracker. H-Power's HY5 is designed for that purpose and produces fuel-cell-grade hydrogen. The LC30 is a 30kW fuel cell generator that can use the hydrogen.

A small base, now growing

H-Power (LSE:HPOW) develops hydrogen power equipment, notably the LC30, a 30kW fuel cell generator, and the HY5, an ammonia cracker designed to produce fuel-cell-grade hydrogen at the point of use. Revenue reached about £2.0m against roughly £0.1m in FY25, with about £1.75m earned in the second half. Cash and short-term deposits stood at about £11.1m at year end, compared with £25.3m a year earlier.

Revenue came from LC30 sales, hydrogen sales that began in May, and the first phase of a joint development agreement with Komatsu. That mix is useful context: FY26 already contained some one-off development income rather than purely recurring product sales.

Three named agreements

The Speedy relationship runs through a joint venture with Speedy Hydrogen Solutions, which placed what the company described as a replenishment order for 15 LC30 units. The joint venture offers customers weekly rental plus fuel priced at Parity with diesel, and the company said utilisation was above target. A depot is also planned at Speedy's London Gateway site. The value of that order was not disclosed.

The Komatsu joint development agreement is worth about US$2m in milestones. Phase one has been delivered and phase two is due by the end of calendar 2027.

Protium has committed to buy 5,000kg of hydrogen over the contract term. Separately, LSE:HPOW announced on 29 October non-binding heads of terms with Protium Green Solutions for an initial two-year deployment of an HY5 unit, capable of up to 500kg of hydrogen a day. That announcement said deployment was expected to begin in the second half of 2027, subject to planning permission and a definitive agreement.

Why the distinction matters

For a company that has just shown its first meaningful revenue, investors are likely to weigh contracted income against aspirational pipeline. The Speedy order and Komatsu milestones look closest to committed revenue, although neither has a published FY27 value. The Protium cracker arrangement is larger in strategic terms because it would move the HY5 from demonstration towards a paid deployment, yet it remains conditional. Discussions with an unnamed S&P 500 partner on further HY5 applications were described as progressing towards commercial terms, which signals intent rather than a contract.

Cash and execution risk

The roughly £14m reduction in cash over the year frames every one of these deals. Further growth in rental fleets, depots and cracker deployments will require Working Capital and engineering resource. Planning consent, customer take-up of rental units and Komatsu's milestone acceptance are all outside the company's direct control. The FY26 figures are unaudited and no profit or loss figure was given.

Revenue and cash

Revenue of about £2.0m against about £0.1m in FY25 is a large relative increase from a very low base. With about £1.75m earned in the second half, the first half contributed only about £0.25m, so the Business was accelerating through the year. Cash and short-term deposits fell to about £11.1m from £25.3m, a decrease of about £14.2m, which is much greater than revenue. At that pace of cash use, about 9 months of the same spending would remain, although spending could change as projects progress.

The three agreements compared

The Komatsu agreement has a value of about US$2m in milestones, and phase one has been delivered, so part of that income has already been recognised. Phase two is due by the end of calendar 2027, which would put some income into FY28 as well as FY27. The Speedy order for 15 LC30 units is described as a replenishment, which implies earlier orders, and utilisation above target suggests Demand for the rental model. The Protium arrangement for 5,000kg of hydrogen provides a Volume commitment, though no price was given.

What heads of terms means

Heads of terms are a non-binding outline of the main points that the parties intend to put in a definitive agreement. They show intent but do not oblige either side to proceed. The Protium agreement is subject to planning permission and a definitive agreement, with deployment expected to start in the second half of 2027, so it would fall late in FY27 at the earliest, or in FY28 if the planning process is slow. An HY5 unit capable of 500kg of hydrogen a day is a sizeable installation.

The unnamed US partner

Discussions with an unnamed partner from the S&P 500 are said to be progressing towards commercial terms. Without a name, a value or a date, this can be treated as a prospect rather than part of visibility. The company's statement that FY26 progress supports FY27 visibility is therefore based mainly on the Speedy, Komatsu and Protium relationships.

What to watch next

LSE:HPOW said its first HY5 deployment remained on track to produce hydrogen in calendar 2026, which leaves only weeks for that milestone. Beyond that, the conversion of the Protium heads of terms into a definitive agreement, phase two of the Komatsu work and the audited FY26 results, for which no date was found are the next checkpoints.