Analyst presentation

Ceres Power Holdings plc will be hosting a live webcast for analysts and investors on 26 March 2026 at 09.30 GMT. To register your interest in participating, please register at:

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For further information visit www.ceres.tech or contact:

About Ceres

Ceres is a leading developer of clean energy technology: fuel cells for power generation and electrolysers to produce green hydrogen. Its asset-light, licensing model has seen it establish partnerships with some of the world's largest companies, such as Doosan, Delta, Denso, Shell, Weichai and Thermax. Ceres' solid oxide technology supports greater electrification of our energy systems, including AI data centres, commercial and industrial applications, and produces green hydrogen at high efficiencies as a route to decarbonise emissions-intensive industries such as ammonia, steelmaking, and electrofuels. Ceres is listed on the London Stock Exchange ("LSE") (LSE: CWR) and is classified by the LSE Green Economy Mark, which recognises listed companies that derive more than 50% of their activity from the green economy. Read more on our website www.ceres.tech or follow us on LinkedIn.

Chief Executive's statement

I am pleased to report on another year of progress as we continue to deliver on our ambitions to establish our solid oxide technology as the industry standard for both power generation and hydrogen production. The year had its challenges as Bosch withdrew from its SOFC activities following a strategic shift and there was a slowdown in the demand for hydrogen solutions. Nonetheless, we intensified our focus on commercial activities and made meaningful progress in positioning Ceres at the heart of emerging markets for power solutions for commercial, industrial and data centre markets. Our focus on disciplined execution, clarity of purpose and partner-centric ways of working is now creating tangible commercial momentum.

Power markets are undergoing structural change

Around the world, electrification, digitalisation and AI are transforming power demand. Nowhere is this clearer than in AI enabled data centres, which have become one of the fastest growing and most energy intensive sectors of the global economy. Structural grid constraints, long lead times for conventional generation and rising environmental pressures are driving operators to look for alternative, high-efficiency power technologies.

Customers tell us consistently that they need faster time-to-power, high electrical efficiency and meaningful heat integration, low local emissions and 24/7 reliability, with systems that can scale quickly.

Ceres' solid oxide systems meet these needs well. As data centre operators expand capacity globally, including major investments announced in the UK by Microsoft, Google, OpenAI/NScale and Blackstone, the near-term commercial opportunity for high-efficiency SOFC systems continues to grow.

Importantly, the same fundamentals underpin opportunities in commercial buildings, industrial campuses, microgrids and other distributed power markets, strengthening our confidence in the scale of demand our partners can serve.

This growth dynamic presents distinct and significant near-term opportunities for Ceres SOFCs given the many advantages over conventional power generation systems, such as gas turbines, diesel reciprocating engines and renewable energy. In comparison, SOFCs can offer the highest rates of energy efficiency coupled with virtually zero particulate emissions and high reliability, making them a natural choice for these markets. In addition to these attractive features, SOFCs can now offer a compelling advantage that other energy systems cannot - rapid time-to-power. Wait times for higher power systems are now significant: up to 15 years for upgraded grid connections; exceeding five years for gas turbines; and at least a decade for small modular nuclear power systems. The more rapid availability of SOFC systems is now becoming a key differentiating factor in the data centre power market (see our Technology section on page 16 for additional details).

Our analysis, based on BloombergNEF estimates, suggests that the market for SOFC power could be around 22GW by 2030, representing a substantial market for our technology. This represents a substantial market for our technology, with Ceres' ability to meet that demand delivered through the scale-up of our manufacturing partners.

A clear step forward in commercial delivery

For almost 25 years, Ceres has invested in building world-leading solid oxide technology. In 2025, that investment translated into some of the most important milestones in our history. We saw our technology move from development to production and our commercial strategy sharpen around the markets that offer the greatest near-term opportunity.

We achieved a significant milestone in July 2025, when Doosan commenced mass market manufacture of fuel cell stacks using Ceres' technology at its first of a kind 50MW facility in South Korea. This represents a validation of both our technology leadership and our asset-light IP licensing model. These early shipments generated our first royalty revenues, marking the beginning of a scalable, high-margin future income stream.

Momentum continued across our partner ecosystem. Delta Electronics advanced at pace towards establishing large-scale manufacturing in Taiwan, targeting AI enabled data centres, commercial buildings, industrial facilities and microgrid applications.

During the year Delta acquired land and factory facilities in Taiwan for approximately £170 million, expected to be partly focused on the large-scale manufacturing of hydrogen energy solutions, based on Ceres' solid oxide technology. Delta continues to move at pace and with clear commitment to initial pilot production based on our technology by the end of 2026.

In November 2025 we announced that we had signed a new manufacturing licence agreement for the production of our proprietary SOFC technology with Weichai Power, a global original equipment manufacturer and power systems developer, headquartered in Shandong, China. Weichai intends to establish a manufacturing facility to produce cells and stacks for the stationary power markets supported by key components supplied by Ceres, targeting power for AI data centres, commercial buildings and industrial applications.

This agreement extends our existing relationship with Weichai, which we anticipate will open up a multi-billion-dollar market opportunity and boosts our ambition to establish Ceres as the global industry standard for solid oxide.

Hydrogen: progress with discipline and purpose

While industry-wide progress on large-scale electrolysis projects has been slower than anticipated, our own SOEC programme continued to advance in 2025.

At Shell's Technology Centre in Bangalore, our first megawatt-scale demonstrator produced hydrogen at industry-leading efficiency, a major proof point of the cost and performance advantages of high-temperature electrolysis. With a class-leading electrolyser module efficiency of 37kWh/kg of hydrogen from a 1MW plant, this equates to potential production capacity of around 600kg of hydrogen per day. This milestone marks an important step, demonstrating the maturity of Ceres' solid oxide electrolyser technology, supported by Shell's installation, integration and safety assurance expertise.

After completing its technology transfer programme during 2025, SOEC manufacturing partner DENSO announced in September that it had begun Japan's first demonstration of SOEC hydrogen production at a JERA (Japan's largest power generation company) thermal power station. This aims to achieve hydrogen production with the world's highest level electrolysis efficiency by applying DENSO's heat-management technology. The project, which is due to run until 2032, is valued at 46 billion yen (c.£220 million), with significant government subsidies from Japan's New Energy and Industrial Technology Development Organisation (NEDO) of up to 35 billion yen (c.£165 million).

In India, Thermax continued its rapid progress, following the launch of its HydroGenX Hub in Pune, our partner broke ground earlier this year on its SOEC pilot plant, a very clear commitment to deploying Ceres' technology in one of the world's most strategically important markets for clean energy in industrial applications.

These milestones reinforce the long-term relevance of our technology as we expect industrial decarbonisation to gather pace towards the end of this decade.

In addition to the significant progress being achieved with current partners, we have also been working hard to ensure that our technology remains an attractive proposition for future manufacturing partners. Our latest design is a stack that can generate power or produce hydrogen from the same core cell and stack platform and enables partners to build both fuel cell and electrolysis stacks using the same manufacturing facility, allowing them to leverage their investment in our technology to access the power markets now and electrolysis markets in the future. I believe that this is a key differentiator for us and our technology, positioning us as the global leader in solid oxide energy solutions.

Market dynamics create new opportunities

In parallel to the AI enabled data centre market, other attractive power applications continue to mature for Ceres through our partners. These include distributed power provision through microgrids; combined heat, power and cooling applications for buildings; and auxiliary power systems for marine vessels. These nascent markets continue to be supported by favourable tax credit and other incentives to adopt next-generation clean technologies, such as fuel cells. Key regions where these are available include the US (30% Investment Tax Credit under Section 48E of the One Big Beautiful Bill for fuel cell adoption), South Korea (the Green New Deal aims to achieve fuel cell deployment of 15GW by 2040, supported by tax and other incentives) and Japan (Green Transformation policies supporting the hydrogen economy, including the development of large-scale stationary fuel cell power stations).

While progress in our power business accelerated in 2025, securing final investment decisions for hydrogen electrolysis projects has undoubtedly been a challenge for the industry, exacerbated by macroeconomic headwinds. However, as we refocus our commercial activities on the near-term opportunities, we remain confident that the structural impetus to decarbonise industrial processes will continue to drive the market over the longer term and that this will stimulate the industry to adopt more advanced clean technologies such as solid oxide.

Executing our business transformation plan

During 2025 we defined new strategic priorities that underpin the sharper commercial focus we have brought to the business (see page 20 for more details). To ensure we are set up for success, we are optimising the business and have initiated a business transformation plan, which started in September 2025. This will realign our resources to new market opportunities by the end of 2026 and consolidate our platform for further growth.

The objectives of this programme are to simplify the organisation, embed accountable ways of working and align resources with the commercial markets that matter most.

By the end of 2026, we expect to have:

·      Realigned Ceres into focused, delivery driven teams;

·      Strengthened partner-centric values and behaviours across the organisation;

·      Reduced operating costs by around 20% compared to the year ending 31 December 2025;

·      Supported partners on their path to manufacturing scale-up and product launch;

·      Enhanced our capability to secure new licensing agreements; and

·      Commercially launched our best-in-class, dual-purpose stack platform serving both power and hydrogen markets, consolidating development onto a unified technology platform ready for scale.

Now is the right time for us to take these actions to optimise the business and I firmly believe that successful completion will ensure that we operate with the scale, pace, discipline and clarity required for commercial success.

Outlook

The final words in my review of the year are dedicated to the people at Ceres. Without doubt, 2025 started as a challenging year for us following the Bosch announcement in February 2025 and a wider slowdown in hydrogen adoption. I am, however, very pleased with the manner in which we responded as a business, demonstrating purpose and professionalism as we refocused on new and evolving market dynamics represented by the growth in power. I would like to thank everyone at Ceres for the ongoing commitment and dedication they showed over the past year. Not only have our teams come together to overcome the challenges of a turbulent year to deliver key milestones for the business, but they have also embraced the changes we are putting in place to drive our next chapter of growth.

Although we are conscious of the uncertainties arising from the war in Iran and its impact on global energy markets, we start 2026 with strong operational momentum. We have generated our first royalty revenues and are seeing growing demand across commercial and industrial power markets - particularly in the rapidly expanding data centre sector. Solid oxide technology is increasingly viewed as a high-efficiency, low emission and fast-to-deploy solution for resilient power. We remain well positioned for electrolysis for green hydrogen as we anticipate industrial demand will accelerate as global decarbonisation policies mature towards the end of this decade.

Our sharper commercial focus and strategic pillars aligned during the year with the resurgence of demand in the power markets, I am confident that we are well positioned to capitalise on the growth in the power markets today and the hydrogen electrolysis markets of tomorrow.

As we enter our 25th year, Ceres is firmly positioned for a new era: establishing our technology platform as the industry standard for solid oxide, embedding partner-centric values throughout the organisation and maintaining absolute focus on commercial execution. Together with our partners, we are moving to market with real pace and unlocking the next phase of growth for Ceres.

Phil Caldwell

Chief Executive Officer

Financial review

2025 has been a pivotal year for Ceres, marking our transition from a primarily R&D first organisation to a business firmly focusing on its commercial phase. Building on the record performance achieved in 2024, we have advanced each of our key partnerships towards factory completion and the start of mass manufacturing of Ceres' solid oxide cells. Importantly, we recognised our first royalty income as Doosan commenced production and sales of Ceres fuel cells, and we deepened our longstanding relationship with Weichai through a new manufacturing licence agreement signed in November.

As we move into this next stage of growth, we are maintaining a disciplined approach to cost management. Across the business, we continued to focus on operating efficiency, prioritising investment in areas that drive commercial scaling while taking a rigorous approach to controlling overheads and optimising our cost base.

Revenue

Revenue for 2025 was £32.6 million, compared with £51.9 million in the prior year. The reduction primarily reflects the timing of revenues recognised in 2024, when up‑front technology transfer activities were completed for our new manufacturing licence partners, Delta and DENSO. Our revenue comprises technology transfers, development licences, engineering services, the provision of technology hardware and, for the first time, royalties as Doosan begun commercial production. Licence revenues from the manufacturing licence agreement signed with Weichai in November 2025 will begin to be recognised in the first half of 2026.

Gross margin

Gross profit of £22.7 million in the year fell by 43% from £40.2 million in 2024, as a result of high-margin technology transfers conducted with Delta and DENSO in 2024. Despite the lower revenue base, our gross margin remained strong at 70% (2024: 77%), illustrating the resilience of our licensing‑led business model and the continued benefits of disciplined cost management.

Other operating income

Other operating income was 11% higher than last year at £3.2 million (2024: £2.8 million), which reflects the level of RDEC (R&D expenditure credits) claimed in the year. As Ceres has now passed the peak of its technology development investment cycle, we expect this to gradually reduce as our focus shifts towards the execution and delivery of commercial programmes.

Operating costs (non-exceptional)

Operating costs reduced to £70.1 million (2024: £74.3 million) as we focused strategic investment on our core product platform to support future commercial growth. This was delivered alongside disciplined financial management, including a restructuring programme implemented in the second half of the year. Following this restructure, the average number of employees decreased to 462 (2024: 546), with the Group ending the year at 353 employees.

Exceptional operating costs

Exceptional operating costs relate to a settlement paid to a supplier for a contractual dispute (£1.4 million) and an obligation arising from the termination of a supplier contract (£2.0 million).

Finance income and expense

Finance income decreased to £4.1 million (2024: £5.8 million), which reflects continued strong interest rates on our bank deposits and short-term investments in money-market funds with a lower average cash position. We maintain a stringent treasury policy to balance appropriate market returns with the security of funds including only high investment grade, and diversification of, financial institutions. Finance expense increased to £0.6 million (2024: £0.4 million) driven by the unwinding of a finance component of a customer contract, £0.3 million.

Taxation charge

Taxation charge decreased to £1.2 million (2024: £2.4 million) and reflects payment of withholding taxes from overseas earnings. The decrease can be attributed to the up-front licence fees recognised in the prior year from the new manufacturing licence partners acquired in 2024.

Loss for the financial year

The Group posted a loss of £47.5 million (2024: £28.3 million) for the period, which reflects the decrease in revenue and gross margin compared to 2024.

Adjusted EBITDA

Adjusted EBITDA loss for 2025 increased to £32.5 million (2024: £22.3 million). Adjusted EBITDA is a non-statutory measure and is detailed in the Alternative Performance Measures section in this review.  The increased loss is primarily due to the decreased revenue explained above.

Reconciliation between operating loss and adjusted EBITDA

Management believes that presenting Adjusted EBITDA loss allows for a more direct comparison of the Group's performance against its peers and provides a better understanding of the underlying trading performance of the Group by excluding non-recurring, irregular and one-off costs. The Group currently defines Adjusted EBITDA loss as the operating loss for the year excluding depreciation and amortisation charges, share-based payment charges, exceptional costs outside the regular course of business, unrealised losses on forward contracts and exchange gains/losses.

Total capital investments

Total capital investments comprises capital expenditure (plant, property and equipment) and capitalised development (intangible assets).  In 2025, total capital investments declined to £1.9 million (2024: £6.7 million), representing completion in intangible investment culminating in the launch of our single stack platform.

Working capital movements

During 2025 working capital decreased by £17.4 million (2024: increase of £15.7 million), due to significant partner invoice receipts in January 2025, recognised as receivables in 2024. Our continued focus on aligning pilot plant production with partner demand ensured that inventory levels remained stable.

Cash outflow

Cash outflow (change in cash, cash equivalents and short-term investments) was £19.2 million (2024: £37.5 million). This significant reduction was supported by substantial partner receipts early in the year and reflects our continued discipline in managing expenditure. As we progress through the commercialisation phase, maintaining tight control of cash remains a core priority, ensuring we allocate resources effectively while preserving balance sheet strength.

Cash, cash equivalents and short-term investments

The Group ends the financial year in a strong position with £83.3 million in cash, cash equivalents and short-term investments (2024: £102.5 million) to support future investment as we drive revenue growth, manage costs and expenditure in a disciplined way, and track towards profit and cash flow break-even.

Events after the balance sheet date

After the year end, Ceres agreed and paid a settlement of £2.0 million with a third party in connection with the early termination of a contract.

Outlook

We enter 2026 with strong operational momentum and a clear line of sight to the next phase of Ceres' commercial growth. Our partners continue to make meaningful progress towards the start of mass production, with factory readiness advancing across our global network.

In parallel, 2025 marked an important milestone as we recognised our first royalties from Doosan's commercial launch. This represents the beginning of a scalable, high‑margin revenue stream that will grow as additional partners commence production. Maintaining this momentum is a key focus for the year ahead.

The launch of our single stack platform further strengthens our product offering and expands the opportunity for both existing and future partners. With a robust technology roadmap, a disciplined operating model and a portfolio of partners approaching commercial scale, Ceres is well positioned to capture long‑term value from the global transition to efficient, low‑carbon power and green hydrogen solutions.

Stuart Paynter

Chief Financial Officer