Q2 2026 Ceres Power Holdings PLC Earnings Call

September 23, 2026

Speaker #2: Good morning, ladies and gentlemen, and welcome to the Ceres Power Q2 interim results investor presentation. Throughout today's recorded meeting, attendees will be in listen-only mode.

Operator: Good morning, ladies and gentlemen, and welcome to the Ceres Power PLC Interim Results Investor Presentation. Throughout today's recorded meeting, attendees will be in listen-only mode. Questions are encouraged. They can be submitted at any time just using the Q&A tab situated on the right-hand corner of the screen. Please just simply type in your questions at any time and press send. For those in the room, we will provide you a microphone for the Q&A. Before we begin, we would like to submit the following poll. I am sure the company will be most grateful for your participation. I would now like to hand over to Phil Caldwell, CEO. Phil, good morning.

Speaker #2: Questions are encouraged; they can be submitted at any time, just using the Q&A tab situated on the right-hand corner of the screen. Please simply type in your questions at any time, and you can use a microphone for the Q&A.

Speaker #2: Before we begin, we'd like to submit the following poll. I'm sure the company will be most grateful for your participation. I'd now like to hand over to Philip Caldwell, CEO.

Speaker #2: Phil, good morning.

Speaker #3: Good morning, everybody, and thank you for joining myself and Stuart for the interim results up until June 30th this year. I'm very pleased to update you on quite significant progress, I think, the company has been making.

Phil Caldwell: Good morning, everybody, and thank you for joining myself and Stuart for the interim results up until 30 June this year. I am very pleased to update you on quite significant progress I think the company has been making. Just to remind you, the growth story of Ceres is built upon three strategic pillars. Signing new manufacturing licensees. That is all about growing market share and establishing this technology as the industry standard. Once we have those partners, accelerating them to market and scale-up and getting into the market is obviously increasingly important. Then, obviously, as a technology business, we have the single stack technology platform, which is Endura, which we launched earlier this year, and that is really the platform upon which our partners are scaling and making significant investments as we go today. The H1 of the year, we have made what I would say considerable progress.

Speaker #3: Just to remind you, the growth story of Ceres is built upon three strategic pillars. Signing new manufacturing licenses—that's all about growing market share and establishing this technology as the industry standard.

Speaker #3: Once we have those partners, accelerating them to market and scaling up and getting into the market is obviously increasingly important. And then, obviously, as a technology business, we have the single-stack technology platform, which is Endura, launched earlier this year. That's really the platform upon which our partners are scaling and making significant investments.

Speaker #3: As we go today, in the first half of the year, we've made what I would say is considerable progress. I'm very happy with where we are on the pipeline.

Phil Caldwell: I am very happy with where we are on the pipeline. We have continued to grow that in all regions, and we reiterate our guidance with main confidence that we are in a good position to sign a new licensee this year. Once we have those partners, we have obviously focused on our existing partnerships as well, and there is quite a lot of activity going on with those partners. With Doosan in South Korea, they signed their first export order, which is around 60 million supply stacks to Reverion in Germany. Delta in Taiwan are continuing to put in the first initial production and have also announced plans for a new facility in Guanyin District in Taiwan. In China, Weichai are going extremely quickly, and they are targeting first production later this year, early next year, and have announced 200 megawatts by the end of the year after, so within 2 years. Incredibly fast.

Speaker #3: We've continued to grow that in all regions, and we reiterate our guidance. We've remained confident that we're in a good position to sign a new licensee this year.

Speaker #3: Once we have those partners, we're obviously focused on our existing partnerships as well, and there's quite a lot of activity going on with those partners.

Speaker #3: We do sign in South Korea. They signed their first export order, which is around 60 million supply stacks to a variant in Germany. Delta in Taiwan are continuing to put in the first initial production and have also announced plans for a new facility in Guangyin, Taiwan.

Phil Caldwell: Delta in Taiwan are continuing to put in the first initial production and have also announced plans for a new facility in Guanyin District in Taiwan. In China, Weichai are going extremely quickly, and they are targeting first production later this year, early next year, and have announced 200 megawatts by the end of the year after, so within 2 years. Incredibly fast.

Speaker #3: In China, Weichai are moving extremely quickly. They're targeting first production later this year or early next year, and have announced 200 megawatts by the end of the following year—so, within two years.

Speaker #3: Incredibly fast. On the hydrogen side, Japan, with Denso, received $165 million in government support. So we're continuing to make progress on the hydrogen side.

Phil Caldwell: On the hydrogen side, Japan, with Denso. Denso received $165 million in government support. We are continuing to make progress on the hydrogen side, but our near-term priority is really on the power systems side. Earlier this year, we also signed a partnership with Centrica here in the UK. That is more of a channel partnership where we aim to bring in technology into regions like the UK and Europe from our manufacturing licensees. I am pleased to say Centrica is already starting to develop their own relationships with our supply chain as well. That is incredibly important for us as we match up the demand side with the supply side that we are building out in this ecosystem. I mentioned the single stack technology platform, Endura. That is our flagship solid oxide stack platform. That is the culmination of many years of not just research, but manufacturing and engineering.

Speaker #3: But our near-term priority is really on the power system side. Earlier this year, we also signed a partnership with Sensica here in the UK.

Speaker #3: That's more of a channel partnership, where we aim to bring technology into regions like the UK and Europe from our manufacturing licensees. And I'm pleased to say Sensica has already started to develop their own relationships with our supply chain as well.

Speaker #3: So that's incredibly important for us as we match up the demand side with the supply side that we're building out in this ecosystem. I mentioned the single-stack technology platform, Endura.

Speaker #3: That's our flagship solid oxide stack platform. That's the culmination of many years of not just research, but manufacturing and engineering, and it's really the building block now as people scale factories.

Phil Caldwell: It is really the building block now as people scale factories. We are not going to be changing that every year. It is all going to be about improving lifetime and cost and CapEx of factories as people scale. That gives them the confidence, and we think that is the leading stack platform out there. On top of that, or underpinning that should I say, we have reinforced the business. In the H1, we took the opportunity to continue with the business transformation, which we undertook last year, which is built around these three pillars of focus, and that is continuing to deliver an optimal cost base, I think. Following years of significant investments, we are now at that execution stage, and Stuart will talk more about the financial performance in just a moment.

Speaker #3: We're not going to be changing that every year. It's all going to be about improving lifetime and cost, and CapEx of factories as people scale.

Speaker #3: But that gives them the confidence, and we think that is the leading stack platform out there. On top of that—or underpinning that, should I say—we've reinforced the business.

Speaker #3: And in the first half, we took the opportunity to continue with the business transformation which we undertook last year, which is built around these three pillars of focus.

Speaker #3: And that's continuing to deliver an optimal cost base, I think. Following years of significant investments, we're now at that execution stage. And Stuart will talk more about the financial performance in just a moment.

Speaker #3: And we also reinforced the balance sheet with just over £100 million in an oversubscribed equity issuance earlier this year. That's really important for the business because, as our partners are making significant investments in scaling, it's important that they realize—just a very quick reminder of our strategy.

Phil Caldwell: We also reinforced the balance sheet with just over GBP 100 million in an oversubscribed equity issuance earlier this year. That is really important for the business because as our partners are making significant investments in scaling, it is important that they real. Just a very quick reminder of our strategy. We are 25 years old this year. We believe we have world-leading technology on solid oxide. That is transferred to partners now through the Endura stack platform, which we launched earlier this year. It is not just a stack platform. We also provide the factory blueprints and also have relationships now with line builders, factory builders who can help our partners get into market quicker and easier. That technology platform, the Endura, has two functions. Running in one direction, we can generate power. Running in the other direction, we can generate hydrogen or synthetic fuels, as is the case with Reverion.

Speaker #3: We are 25 years old this year. We believe we have world-leading technology in solid oxide, which has now been transferred to partners through the Endura Stack platform, launched earlier this year.

Phil Caldwell: That is transferred to partners now through the Endura stack platform, which we launched earlier this year. It is not just a stack platform. We also provide the factory blueprints and also have relationships now with line builders, factory builders who can help our partners get into market quicker and easier. That technology platform, the Endura, has two functions. Running in one direction, we can generate power. Running in the other direction, we can generate hydrogen or synthetic fuels, as is the case with Reverion.

Speaker #3: But it's not just a stack platform. We also provide the factory blueprints and now have relationships with line builders and factory builders who can help our partners get to market quicker and easier.

Speaker #3: That technology platform, the Endura, has two functions. Running in one direction, we can generate power. Running in the other direction, we can generate hydrogen or synthetic fuels, as is the case with the variant.

Speaker #3: The urgency right now is on the power side. And we have Doosan in South Korea, Weichai in China, Delta in Taiwan—all either in production or imminently coming into production and scaling.

Phil Caldwell: The urgency right now is on the power side, and we have Doosan in South Korea, Weichai in China, Delta in Taiwan, all either in production or imminently coming into production and scaling. On the hydrogen side, we have been working for a number of years with Shell as a channel partner, but our licensee partners are Denso, who are making good progress, and Delta also has the dual license as well, and we work with Thermax as a systems integrator in India. One platform, intentions global factories and partnerships. Just want to talk a little bit about the demand for power. I think many of you probably are seeing this or are familiar with this, but there are two things going on here. One is the demand for power has never been greater, and that has got pretty acute because conventional power generation equipment is in short supply.

Speaker #3: On the hydrogen side, we've been working for a number of years with Shell as a channel partner, but our licensee partners are Denso, who are making good progress, and Delta also has the dual license as well.

Speaker #3: And we work with Thermax as a systems integrator in India. So, one platform intention is global factories and partnerships. I just want to talk a little bit about the demand for power.

Speaker #3: I think many of you are probably seeing this or are familiar with it. But there are two things going on here. One is that the demand for power has never been greater.

Speaker #3: And that's got pretty acute, because conventional power generation equipment is in short supply. If you want to buy a gas turbine, it's a five to seven year lead time.

Phil Caldwell: If you want to buy a gas turbine, it is 5 to 7 years lead time. If you think about nuclear, it is into the next decade. If you think about waiting for a grid connection, not just in the UK, but in many countries now, it is at least 5 years and up to a decade. The time to power creates a window of opportunity for us. I believe that we have about a 5-year window to get into this market, establish this technology, and get down the cost curves and scale the supply chain. Part of that is time to market. It is all about time to market. Our first factory, that we did with Doosan, took us around 4 years around the COVID time. Current factories that are in build, around 3 years.

Speaker #3: If you think about nuclear, it's into the next decade. If you think about waiting for a grid connection—not just in the UK, but in many countries now—it's at least five years and up to a decade.

Speaker #3: Now, the time to power creates a window of opportunity for us. I believe that we have about a five-year window to get into this market, establish this technology, and get down the cost curves and scale the supply chain.

Speaker #3: Part of that is time to market. It's all about time to market. Our first factory that we did with Dusan took us around four years, around the COVID time.

Speaker #3: Current factories that have been built—around three years. The factories that we currently have now, the last factories that we signed with the likes of Weichai, are on track for about two years or less.

Phil Caldwell: The factories that we currently have now, the last factories that we signed with the likes of Weichai, are on track for about 2 years or less. That is because we have standardized the Endura, we have built factories several times over, and we have actually now got partners who can actually, when we sell a license, we can actually bring into view and help people lay down production pretty quickly. So two things going on. Time to power is acute and wait for conventional power generation has got longer, and our ability to get people into the market is getting faster. Why do we think that the Endura platform can win in the power market? Well, I have just mentioned the first factor, which is time to power, and I mentioned this window.

Speaker #3: That's because we've standardized the Endura, we've built factories several times over, and we've actually now got partners who can, when we sell a license, actually bring them into view and help people lay down production pretty quickly.

Speaker #3: So, two things are going on. Time to power is acute, and the wait for conventional power generation has gotten longer. And our ability to get people into the market is getting faster.

Speaker #3: So why do we think that the Endura platform can win in the power market? Well, I've just mentioned the first factor, which is time to power.

Speaker #3: And I've mentioned this window. However, it only works if this technology is cost-competitive. And right now, we are cost-competitive with conventional power generation. There will be about—now, with time, there's going to be more supply, I think, of things like turbines, VSIPs, et cetera.

Phil Caldwell: However, it only works if this technology is cost competitive, and right now we are cost competitive with conventional power generation, there or thereabouts. Now, with time, there is going to be more supply, I think, of things like turbines, VSIBS, et cetera, and they will start to come cheaper again. But I think where we are with solid oxide is we are only at the beginning of that scale-up journey, and the costs are going to come down with scale, with supply chain, with localization. So we are cost competitive now, and I think in the future, if you look at the attributes of this technology, it is predominantly steel. The rare earths we use are commonly available. We are using equipment that is come out of standard chip manufacture, PV manufacturing.

Speaker #3: And they'll start to become cheaper again. But I think where we are with solid oxide is we're only at the beginning of that scale-up journey.

Speaker #3: And the costs are going to come down with scale, with supply chain, with localization. So we're cost-competitive now, and I think in the future, if you look at the attributes of this technology, it's predominantly steel.

Speaker #3: The rare earths we use are commonly available. We're using equipment that's come out of standard chip manufacturing and PV manufacturing. It can scale rapidly, and there's no reason why we can't get down these cost curves—particularly with the manufacturing partners that we've already signed.

Phil Caldwell: It can scale rapidly, and there is no reason why we cannot get down these cost curves, particularly with the manufacturing partners that we have already signed. But then I think there is another story to this, which is what gives solid oxide the right to win in the long term. If you actually look at this from the other factors that are coming on in terms of power generation, the first thing is permitting. So just because you can build power does not mean you should build power or you have the right to build power. You are probably seeing it in the news. There is a lot of resistance to new data centers, for example, being built, particularly in the US.

Speaker #3: But then I think there's another story to this, which is: what gives solid oxide the right to win in the long term? And if you actually look at this from the other factors that are coming in, in terms of power generation, the first thing is permitting.

Speaker #3: So, just because you can build power doesn't mean you should build power, or that you have the right to build power. And you're probably seeing it in the news.

Speaker #3: There's a lot of resistance to new data centers, for example, being built, particularly in the US. And we're seeing power generation—what we call behind-the-meter, on-site power generation—in some cases. Contracts that were won by conventional power generation like turbines, like VSIPs, are actually now being flipped over towards solid oxide.

Phil Caldwell: We are seeing power generation, what we call behind the meter, on-site power generation. In some cases, contracts that were won by conventional power generation, like turbines, like VCSPs, actually now being flipped over towards solid oxide. Why is that? Well, first thing is almost zero water usage, which is becoming critical in many regions, as we have seen this summer. Things like lower carbon to zero carbon when you combine it with carbon capture. No combustion means air quality, so there is no SOx, no NOx. It is virtually silent, which means you can put it in buildings, you can locate it close to urban centers, et cetera. Because it is behind the meter, there should not be an impact on local power prices as well. So actually, this technology is a better technology from a sustainability point of view, and that is becoming more of an issue with permitting.

Speaker #3: Why is that? Well, the first thing is almost zero water usage, which is becoming critical in many regions, as we've seen this summer. Things like lower carbon to zero carbon when you combine it with carbon capture.

Speaker #3: No combustion means better air quality. So there's no SOx, no NOx. It's virtually silent, which means you can put it in buildings; you can locate it close to urban centers, etc.

Phil Caldwell: No combustion means air quality, so there is no SOx, no NOx. It is virtually silent, which means you can put it in buildings, you can locate it close to urban centers, et cetera. Because it is behind the meter, there should not be an impact on local power prices as well. So actually, this technology is a better technology from a sustainability point of view, and that is becoming more of an issue with permitting.

Speaker #3: And because it's behind the meter, there shouldn't be an impact on local power prices as well. So actually, this technology is a better technology from a sustainability point of view.

Speaker #3: And that's becoming more of an issue with permitting. So if you have a technology that can be delivered in the right timescale because it's modular and coming out of factories, it's cost-competitive, and aids permitting, solid oxide becomes a permanent part of that energy mix.

Phil Caldwell: If you have a technology that can be delivered in the right timescale because it is modular and coming out of factories, it is cost competitive and aids permitting, solid oxide becomes a permanent part of that energy mix. So it is not just a passing thing because we cannot get conventional power generation. Then I think the other thing that is interesting is when we think about conventional power generation, it is AC based, it is alternating current. That is because it was developed in the last century for the economy we had then. If you look at our economy now, it is more computing, it is AI, it is electric vehicles. A lot of that infrastructure is DC based, and we are seeing companies like NVIDIA pushing 800V DC architecture. The good thing about fuel cells is they are DC native. That means they actually generate DC power.

Speaker #3: So it's not just a passing thing because we can't get conventional power generation. Then I think the other thing that's interesting is when we think about conventional power generation, it's AC-based.

Speaker #3: It's alternating current, and that's because it was developed in the last century for the economy we had then. If you look at our economy now, it's more computing.

Speaker #3: It's AI. It's electric vehicles. A lot of that infrastructure is DC-based, and we're seeing companies like NVIDIA pushing 800-volt DC architecture. The good thing about fuel cells is they're DC-native.

Speaker #3: That means they actually generate DC power. That means, first of all, they're more efficient. You can save about 5%—that's NVIDIA's view—in terms of the efficiency gained by going from AC to DC in a data center by being DC direct.

Phil Caldwell: That means that you can, first of all, they are more efficient, so you can save about 5%, is NVIDIA's view, in terms of the efficiency of going from AC to DC in a data center by being DC direct. It is high voltage, lower current, which means you are saving on things like copper. You are eliminating things like switch gear, transformers, et cetera. You can also get more power into the rack, which is going to be a key feature going forwards. As well as the permitting, the 800V DC compatibility is going to become more and more of a potential requirement from about 2028, 2029. The way I see the whole thing is the window is opened up now. First, buying criteria is always going to be cost, and time to power. But then permitting comes along, and then also future proofing for 800V DC.

Speaker #3: It's high voltage, lower current, which means you're saving on things like copper. You're eliminating things like switchgear, transformers, et cetera. And you can also get more power into the rack, which is going to be a key feature going forward.

Speaker #3: So, as well as the permitting, the 800-volt DC compatibility is going to become more and more of a potential requirement from about 2028, 2029.

Speaker #3: So, the way I see the whole thing is the window's opened up now. First, buying criteria is always going to be cost and time to power.

Speaker #3: But then permitting comes along, and then also future-proofing for 800-volt DC. So the Endura platform meets all of those requirements. This is Sarah's view of the market.

Phil Caldwell: The Endura platform meets all of those requirements. This is Ceres' view of the market. We have not changed this. We think it is about a 22 gigawatt opportunity by the end of the decade. There is a lot of interest, obviously, right now in things like data centers, but that is about 50% of the market. We are also seeing a lot of interest. Regionally, obviously, the US is the biggest market right now, but when you look at the rest of Asia, that is 50% of the market, Europe, et cetera. So we see this as a global market. This is not unique to one particular region. Just going on now to what progress our partners are making. I mentioned earlier Doosan are making progress with their first contract for stack supply, with Reverion in Germany.

Speaker #3: We haven't changed this. We think it's about a 22-gigawatt opportunity by the end of the decade. There's a lot of interest, obviously, right now in things like data centers.

Speaker #3: But that's about 50% of the market. We've also seen a lot of interest regionally. Obviously, the US is the biggest market right now, but when you look at the rest of Asia, that's 50% of the market.

Speaker #3: Europe, et cetera. So we see this as a global market; this is not unique to one particular region. Just moving on now to what progress our partners are making.

Speaker #3: I mentioned earlier, Doosan is making progress with their first contract for stack supply with Riverian in Germany. Riverian is an interesting company because they have a truly reversible system, using our technology.

Phil Caldwell: Reverion is an interesting company, because they have a truly reversible system using our technology, so they can generate power in one direction. When they do not need that power, they can actually generate synthetic methane in the other direction. So you have something that can arbitrage, if you like, and work on both sides of the energy mix. It is an important milestone for Doosan because it is their first export contract for SOFC. I mentioned Delta. The first production, we are busy with right now in Taoyuan. So that is a 2026 production facility. They have announced this year a brand new facility in Guanyin in the north, which will house the scale up, the mass manufacture of the solid oxide as well. So Delta is obviously a key customer for us, very big already in the ecosystem of data centers, and has the strength and the ability to scale fast.

Speaker #3: So, they can generate power in one direction. When they don't need that power, they can actually generate synthetic methane in the other direction. So, you have something that can arbitrage, if you like, and work on both sides of the energy mix.

Speaker #3: It's an important milestone for Doosan because it's their first export contract for SOFC. I mentioned Delta. The first production we're busy with right now is in Tainan.

Phil Caldwell: The first production, we are busy with right now in Taoyuan. So that is a 2026 production facility. They have announced this year a brand new facility in Guanyin in the north, which will house the scale up, the mass manufacture of the solid oxide as well. So Delta is obviously a key customer for us, very big already in the ecosystem of data centers, and has the strength and the ability to scale fast.

Speaker #3: So that's a 2026 production facility. They have announced this year a brand new facility in Guanyin in the north, which will house the scale of the mass manufacture of the solid oxide as well.

Speaker #3: So, Delta is obviously a key customer for us—very big already in the ecosystem of data centers—and has the strength and the ability to scale fast.

Speaker #3: We signed the partnership with Centric earlier this year. That's all about bringing in this technology into markets where we've got the right kind of, first of all, spark spread in terms of the opportunity for localized power generation.

Phil Caldwell: We signed the partnership with Centrica earlier this year. That is all about bringing in this technology into markets where we have got the right kind of, first of all, spark spread in terms of the opportunity for localized power generation, and also the need, and we have that in the UK in terms of the time for grid connections, et cetera. There is a lot more detail on this. We published a joint white paper with Centrica just last week, and that has really got a lot of interest, particularly for end users for Centrica as well. But that is also well worth looking at. It is not just about us. Our role here is to facilitate the ecosystem, so we have introduced Centrica to all of our partners. Centrica signed the first agreement with Delta, and that is really targeting data centers and other energy-intensive industries in the UK and Europe as well.

Speaker #3: And also the need—and we have that in the UK—in terms of the time for grid connections, et cetera. There's a lot more detail on this.

Speaker #3: We published a joint white paper with Centric just last week, and that's really got a lot of interest, particularly from end users for Centric as well.

Speaker #3: But that's also well worth looking at. And it's not just about us; our role here is to facilitate the ecosystem. So we've introduced Centric to all of our partners.

Phil Caldwell: It is not just about us. Our role here is to facilitate the ecosystem, so we have introduced Centrica to all of our partners. Centrica signed the first agreement with Delta, and that is really targeting data centers and other energy-intensive industries in the UK and Europe as well.

Speaker #3: Centric has signed the first agreement with Delta, and that's really targeting data centers and other energy-intensive industries in the UK and Europe as well.

Speaker #3: Weichai are going fast. We've been working with Weichai for a long time on the system. They haven't launched their new system yet, but it's pretty impressive.

Phil Caldwell: Weichai are going fast. We have been working with Weichai for a long time on system. They have not launched their new system yet, but it is pretty impressive, and they are looking to sell that through a subsidiary, Patwan, in Europe at 600 kilowatt SOFC systems. So at some stage, I hope later this year, this will be launched and announced. But they have a lot of experience on the system side, and obviously now they are scaling up on the stack production side as well. That is on the power generation side. I want to also just reference our progress on hydrogen. I mentioned Denso. They have continued to develop the SOEC technology. They have big government backing in Japan. That is continuing. We are very happy with progress there. Our partnership with Shell on the demonstrator continues to exceed expectations.

Speaker #3: And they're looking to sell that through a subsidiary, Badawan, in Europe, at 600-kilowatt SOFC systems. So at some stage, I hope later this year, this will be launched and announced.

Speaker #3: But that's because they have a lot of experience on the system side, and obviously now they're scaling up on the stack production side as well.

Speaker #3: That's on the power generation side. I also want to reference our progress on hydrogen. I mentioned Denso; they've continued to develop the SOEC technology.

Speaker #3: They've had significant government backing in Japan, and that's continuing. We're very happy with the progress there. Our partnership with Shell on the demonstrator continues to exceed expectations.

Speaker #3: And we're now looking at the next version of that, which is the pressurized SOEC. We're doing this in combination with Shell, but we're also looking to test it in India.

Phil Caldwell: We are looking at now the next version of that, which is the pressurized SOEC, which we are doing in combination with Shell, but also looking to test that in India with Thermax, our EPC partnership there. I think that what we are seeing on the hydrogen side is obviously India is a big market for the hydrogen side, but we are also starting to see growing interest in China as well. So we continue to develop this technology because we are starting to see some demand for the SOEC. What do we think this market looks like? About 38 gigawatts, but that is a 2035 number. I think the easy way to think about this is near term, between now and 2030, we think this is a power generation market.

Speaker #3: With Thermax, our EPC partnership there, I think that what we're seeing on the hydrogen side is—obviously, India is a big market for hydrogen, but we're also starting to see growing interest in China as well.

Speaker #3: So, we continue to develop this technology because we are starting to see some demand for the SOEC. What do we think this market looks like?

Speaker #3: About 38 gigawatts, but that's a 2035 number. I think the easy way to think about this is that near-term, between now and 2030, we think this is a power generation market.

Speaker #3: But if you're scaling Endura and you have the production, you're positioning yourself, I think, for the hydrogen market, which follows the end of this decade and into the next decade.

Phil Caldwell: But if you are scaling Endura and you have the production, you are positioning yourself, I think, for the hydrogen market, which follows end of this decade and into the next decade. I think it is an important future value creation for us, and our positioning is good because all the work we are doing on the stack in terms of power generation, scale-up, supply chain, et cetera, it is the same stack technology that services the hydrogen market in the future as well. As I mentioned at the beginning, it is all about becoming the industry standard for solid oxide, so that is building out this ecosystem. We have the four manufacturing partners we talked about already and the systems and channel partners in terms of Centrica, Thermax, and Shell. That is a brief overview of where we are strategically. I am very happy with the progress to date.

Speaker #3: So I think it's an important future value creation for us. And our positioning is good, because all the work we're doing on the stack—in terms of power generation, scale-up, supply chain, et cetera—it's the same stack technology that services the hydrogen market in the future as well.

Speaker #3: And as I mentioned at the beginning, it's all about becoming the industry standard for solid oxide. So that is building out this ecosystem. We have the four manufacturing partners we talked about already.

Speaker #3: And the systems and channel partners in terms of Centrica, Thermax, and Shell. So that's a brief overview of where we are strategically. I'm very happy with the progress to date.

Speaker #3: And I'll hand you over to Stuart, who will talk you through the financials.

Phil Caldwell: Now I will hand you over to Stuart to talk you through the financials.

Speaker #1: Thank you, Phil. Phil has given us a bit of a briefing on where the market is, and where we are in the market with our partners.

Stuart Paynter: Thank you, Phil. Phil has given us a bit of a briefing on where the market is and where we are in the market with our partners, and I am just going to give you a little view of how that translates into numbers and how things are going back in Horsham and Redhill, where we are making some progress internally in transforming ourselves into a commercially focused company. On the financial review, our guidance for the year was that we had contracted revenues of GBP 45 million. You can see that we have achieved right about half of that in H1, which is, I think, good progress. I have got a slide on the execution here. Obviously, the gross margin is going to be high. The mix is around licensing revenues, in H1, and we will maintain that high margin.

Speaker #1: And I'm just going to give you a little view of how that translates into numbers, and how things are going back in Horsham and Redhill, where we're making some progress internally in transforming ourselves into a commercially focused company.

Speaker #1: So, on the financial review, our guidance for the year was that we had contracted revenues of £45 million. You can see that we've achieved around about half of that in the first half, which is, I think, good progress.

Speaker #1: And I've got a slide on the execution here. Obviously, the gross margin is going to be high. The mix is around licensing revenues. In the first half, we'll maintain that high margin.

Speaker #1: And the loss, as you can see, has come down on a comparable revenue basis from the prior year, based on all the work we've done in terms of rationalizing our cost base to give us more focus on the commercials.

Stuart Paynter: The loss you can see has come down on a comparable revenue basis from the prior year, based on all the work we have done in terms of rationalizing our cost base to give us more focus on the commercials. Again, you can see that in the R&D cost as well. We believe that this is now an optimized level of R&D we are spending. As Phil said, all this work crystallized into the Endura stack we launched in H1. Now we believe we have got the right people in the right places in our business to both deliver the next raft of lifetime and cost innovations in SOFC and SOEC, and also to get our message out into the marketplace correctly.

Speaker #1: And again, you can see that in the R&D cost as well. We believe that this is now an optimized level of R&D we're spending.

Speaker #1: So, as Phil said, all this work crystallized into the Endura stack we launched in the first half of the year. Now we believe we've got the right people in the right places in our business to both deliver the next raft of lifetime and cost innovations in SOFC and SOEC, and also to get our message out into the marketplace correctly.

Speaker #1: We did do a fundraise in the first half. As Phil said, it's important, given who we speak to in terms of the ecosystem. Some of the biggest companies in the world—they’ve got surety that we're going to be around to be their R&D engine for the next 20 years.

Stuart Paynter: We did do a fundraise in H1, and as Phil said, it's important given who we speak to in terms of the ecosystem, some of the biggest companies in the world, that they've got surety that we're going to be around to be their R&D engine for the next 20 years. This is a 20-year investment they're making in their factories, hopefully accessing both of the markets Phil's taken us through. That leaves us with a strong cash position. That's really positive for us. On the cash outflow, that's normalized, obviously, without the fundraise in it. But we've got a lumpy cash inflow and outflow given some of the big amounts that swing in and out of our bank balance, given some of the billing we do.

Speaker #1: This is a 20-year investment they're making in their factories. Hopefully, accessing both of the markets still is taking us through, and that leaves us with a strong cash position.

Speaker #1: So that's really, really, really, really positive for us. And then on the cash outflow, that's normalized, obviously, without the fundraising in it. But we've got a lumpy cash inflow and outflow, given some of the big amounts that are swinging in and out of our bank balance, given some of the billing we do.

Speaker #1: So we're pretty confident now we've got the right financial structure, the right cap table, to make the sort of progress that we're looking for.

Stuart Paynter: We're pretty confident now we've got the right financial structure, the right cap table, to make the sort of progress that we're looking for. Just on this revenue and gross profit, I want to just highlight here that this is about execution. When we made the changes and kicked off our transformation at the end of last year, we wanted to be sure that we could still deliver for our partners. I think this is a story of delivery from our teams. I'm very proud of the contracted revenue in H2. That really is a testament to a team that's going through embracing this transformation and continuing to deliver for our customers. A bit on the transformation, it started at Q4 2025, and it's going to finish sometime this year.

Speaker #1: Just on this revenue and gross profit, I mean, I want to highlight here that this is about execution. When we made the changes and kicked off our transformation at the end of last year, we wanted to be sure that we could still deliver for our partners.

Speaker #1: And I think this is a story of delivery from our teams. I'm very proud of the contracted revenue in the second half, so that really is a testament to a team that's going through, embracing this transformation, and continuing to deliver for our customers.

Speaker #1: And then a bit on the transformation. It started in Q4 2025, and it's going to finish sometime this year. I mean, continued improvement will always be there.

Stuart Paynter: Continual improvement will always be there, but in terms of our transformation programs, we've really done a lot of work, so the team can be very proud of themselves. We've got 350 to 370 people back in Redhill and Horsham who are doing a great job. We believe we've transformed the company into this commercially focused company. I think that reads through to the pipeline health that our chief commercial officer spoke about at the Capital Markets Day. We've launched Endura, which we did at the Capital Markets Day, too, and that's really the crystallization of a ton of hard work from the team. Now we're very focused on this is our product to the market, making these lifetime and cost improvements, which we're very confident we can do to make this business case even more compelling for our existing and potential new partners.

Speaker #1: But in terms of our transformation programs, we've really done a lot of work, so the team can be very proud of themselves. We've got 350 to 370 people back in Redhill and Horsham who are doing a great job.

Speaker #1: We believe we've transformed the company into a commercially focused organization. I think that carries through to the pipeline health that our Chief Commercial Officer spoke about at the Capital Markets Day.

Speaker #1: And we've launched Endura, which we did at the Capital Markets Day too. And that's really the crystallization of a ton of hard work from the team.

Speaker #1: And now we're very focused on: this is our product to the market, making these lifetime and cost improvements, which we're very confident we can do to make this business case even more compelling for our existing and potential new partners.

Speaker #1: So, we've enhanced our commercial capabilities, done a lot of cultural work on being very partner-centric, and we've also reduced costs while we're there.

Stuart Paynter: We've enhanced our commercial capabilities, done a lot of cultural work on being very partner-centric, and we've also reduced cost while we're there. We believe now we've got an optimized cost base so we can make various investments from this point to enable us to bring this technology to the widest market we can. The cost base, you can see it's coming down significantly, or it's come down significantly, and now this is the base which we see we can make these specified strategic investments from, but we're going to be very prudent. We've got the right people in the right place doing the right things now. We're going to be pretty prudent with that cash. But we do see now the opportunity to make some investments in scale-up for our partners. This is a technology now that's going from pilot scale to commercial scale.

Speaker #1: So that's why we believe now we've got an optimized cost base. So we can make various investments from this point to enable us to bring this technology to the widest market we can.

Speaker #1: So, the cost base, you can see, is coming down significantly—or it has come down significantly. And now, this is the base from which we see we can make these specified strategic investments.

Speaker #1: But we're going to be very, very prudent. We've got the right people in the right place, doing the right things now, and we're going to be pretty prudent with that cash.

Speaker #1: But we do see now the opportunity to make some investments in scale-up for our partners, and this is a technology now that's going from pilot scale to commercial scale.

Speaker #1: When we say commercial scale, this is very large commercial scale. So we need to ensure that we are acting both on the demand side, as Phil laid out with Centrica, and on the supply side through supply chain management to make sure that our partners can move very, very quickly to gigawatt scale.

Stuart Paynter: And when we say commercial scale, this is very large commercial scale. We need to ensure that we are acting both on the demand side, as Phil laid out with Centrica, and on the supply side through supply chain management to make sure that our partners can move very quickly to gigawatt scale, because ultimately, this is all about royalties for us. Then the cash flow, you can see it's obviously coming down. It's dependent on signing new customers. But we're definitely trending in the right direction here, and we reiterate that we've got a strong pipeline, and with one partnership on a cadence every 12 months, we'll be more or less break even from a profitability and a cash perspective. So that's the situation we find ourselves in now.

Speaker #1: Because ultimately, this is all about royalties for us. And then the cash flow—you can see it's obviously coming down. It's dependent on signing new customers.

Speaker #1: But we're definitely trending in the right direction here, and we reiterate that we've got a strong pipeline. With one partnership on a cadence every 12 months, we'll be more or less break-even from a profitability and a cash perspective.

Speaker #1: So that's the situation we find ourselves in now. We've optimized the cost base for that purpose, and to deliver world-class R&D, which we believe we can do.

Stuart Paynter: So we've optimized the cost base for that purpose and to deliver world-class R&D, which we believe we can do, and put ourselves in the strongest position to be around for the longest time for our partners. With that, I'll hand back to Phil.

Speaker #1: And put ourselves in the strongest position to be around for the longest time for our partners. With that, I'll hand back to Phil.

Speaker #2: Thanks, Shearer. Yeah, so just to close out, really, we think we're in a very healthy position now to take full advantage of this opportunity that we see ahead of us.

Phil Caldwell: Thanks, Stuart. Yeah, so just to close out, really. We think we're in a very healthy position now to take full advantage of this opportunity that we see ahead of us. That power demand isn't going away. It's accelerating, and time to power is now the defining constraint, and it will be for the next five years. That's driving more and more interest for this technology, and this technology is now, I think, going from being something that was a new technology to something that people now start to understand and actually becomes part of that, a real option for power generation for behind the meter. We've built the Endura platform, and that's really designed for scale. And as we said, after many years of R&D, we're now in that scale-up phase.

Speaker #2: That power demand isn't going away—it's accelerating. And time to power is now the defining constraint, and it will be for the next five years.

Speaker #2: That's driving more and more interest in this technology. And this technology is now, I think, going from being something that was a new technology to something that people are now starting to understand.

Speaker #2: And that's—see—becomes part of that, an option, a real option for power generation, for behind-the-meter. We've built the Endura platform, and that's really designed for scale.

Speaker #2: And as we said, after many years of R&D, we're now in that scale-up phase. So the Endura platform isn't going to significantly change year-on-year.

Phil Caldwell: So that Endura platform isn't going to significantly change year on year, but it's going to have the continuous focus of cost, lifetime performance from our technology team in Ceres. And really our aim is to establish this as the global standard. And the way we do that is more partners scaling on the Endura platform. And that's the strategy we have, and we're very happy with the progress we're making to date. So thank you for your attention this morning, and we're happy to take questions.

Speaker #2: But it's going to have the continuous focus on cost, lifetime, and performance from our technology team in Ceres. And really, our aim is to establish this as the global standard.

Speaker #2: And the way we do that is by having more partners scaling on the Endura platform. That's the strategy we have, and we're very happy with the progress we're making to date.

Speaker #2: So thank you for your attention this morning. We're happy to take questions.

Speaker #1: That's great, Phil. Sure. Thank you very much indeed for updating investors. Ladies and gentlemen, to those online, if you continue to submit your questions, just use the Q&A tab situated on the right-hand side.

Operator: That's great, Phil, Stuart. Thank you very much indeed for updating investors. Ladies and gentlemen, for those online, if you continue to submit your questions just using the Q&A tab situated on the right-hand side. Before we take those online questions, perhaps I could just invite questions from the room. I'll pass you the microphone, and then we'll move on. Thank you.

Speaker #1: Before we take those online questions, perhaps I could just invite questions from the room. I'll pass you the microphone, and then we'll move on.

Speaker #1: Thank you.

Speaker #3: Thanks, guys. Alex here from Berenberg. Just a question on the current pipeline of partners that you're talking to; could you maybe give a bit more color on what that looks like?

[Analyst] (Berenberg): Thanks, guys. Alex here from Berenberg. Just a question on the current pipeline of partners that you're talking to. Could you maybe give a bit more color on what that looks like, how live discussions are going? You mentioned some reallocation of resources towards better customer engagement. A bit more color on how you can do that would be great.

Alex Smith: Thanks, guys. Alex here from Berenberg. Just a question on the current pipeline of partners that you're talking to. Could you maybe give a bit more color on what that looks like, how live discussions are going? You mentioned some reallocation of resources towards better customer engagement. A bit more color on how you can do that would be great.

Speaker #3: How are live discussions going? And you mentioned some reallocation of resources towards better customer engagement. A bit more color on how you plan to do that would be great.

Speaker #2: Yes, I'll say what I can. The pipeline has grown significantly and continues to grow, and that's in all regions. We have engagements in the US and in Asia.

Phil Caldwell: Yes. I'll say what I can. The pipeline has grown significantly and continues to grow. That's in all regions. We have engagements in the US. In Asia, there's a lot of activity, and here in Europe as well. We have invested in the business development team significantly. We're starting to see, I think, the fruits of that in terms of the number of engagements and the quality of engagements of where they're at. Obviously, it's a pipeline, so people are at different stages. We're obviously focused on some of the ones that are later on in those stages. I would say that I'm very happy we are doing everything we're doing delivering to the customers. There's always a timing issue in terms of we're not fully in control of that. The more these engagements that we have, the better.

Speaker #2: There's a lot of activity, and here in Europe as well. So, we have invested in the business development team significantly, and we are starting to see, I think, the fruits of that in terms of the number of engagements and the quality of engagements and where they're at.

Speaker #2: Obviously, it's a pipeline, so people are at different stages. And we're obviously focused on some of the ones that are later on in those stages.

Speaker #2: I would say that we are—I'm very happy we are doing everything we're doing to live into the customers. There's always a timing issue, in terms of we're not fully in control of that.

Speaker #2: So, the more of these engagements that we have, the better. But as we look towards the end of this year and into next year, the health of that pipeline is very strong.

Phil Caldwell: As we look towards the end of this year and into next year, the health of that pipeline is very strong. I'm very confident that that will yield future MLA partners.

Speaker #2: So I'm very confident that that will yield future MLA partners.

Speaker #3: And you mentioned line builders, and you almost have a factory blueprint. Does that help accelerate your discussions with future partners so they can gain scale as quickly as possible?

[Analyst] (Berenberg): And you mentioned line builders, and you almost have a factory blueprint. Does that help accelerate your discussions with future partners that they can

Alex Smith: And you mentioned line builders, and you almost have a factory blueprint. Does that help accelerate your discussions with future partners that they can

Phil Caldwell: Yes

[Analyst] (Berenberg): get to scale as quickly as possible?

Alex Smith: get to scale as quickly as possible?

Speaker #2: Yes, it does. And it's almost become part of the buying process now that a lot of our potential partners actually go and visit our partners who would actually build factories.

Phil Caldwell: It does, and it has almost become part of the buying process now that a lot of our potential partners actually go and visit our partners on who would actually build factories. So, a typical process would be they will come in, see the technology, the scale of activity, and who can actually deliver that as well. So I think it is a key part of that sales activity because the pipeline of partners that we have are all looking at how do I produce several hundred megawatts and above. So that is the real consideration for them.

Speaker #2: So, a typical process would be they’ll come in, see the technology—the scale-up activity—and who can actually deliver that as well. So, I think it’s a key part of that sales activity.

Speaker #2: Because the pipeline of partners that we have are all looking at how do I produce several hundred megawatts and above, so that's the real consideration for them.

Speaker #3: So I just want to ask one. This one is kind of an eccentric type of partnership, and it was quite successful. It was quickly unlocked, with quite a bit of demand already.

[Analyst] (Berenberg): So just one last one. Just on Centrica partnership, and that was quite successful.

Alex Smith: So just one last one. Just on Centrica partnership, and that was quite successful.

Phil Caldwell: Yeah.

[Analyst] (Berenberg): It was quickly unlocked quite a bit of demand already. Is that also something we should see in the future, more collaborations similar to that Centrica partnership?

Phil Caldwell: Yeah.

Alex Smith: It was quickly unlocked quite a bit of demand already. Is that also something we should see in the future, more collaborations similar to that Centrica partnership?

Speaker #3: Is that also something we should see in the future? More collaborations similar to that kind of partnership?

Speaker #2: Yeah, it's something that we're looking at replicating. But I think at the moment we want to get that Eccentric One moving. I mentioned the activity that's going on with Eccentric One, the white paper, et cetera.

Phil Caldwell: Yeah, it is something that we are looking at replicating, but I think at the moment, we want to get that Centrica one moving. I mentioned the activity that is going on with Centrica, the white paper, et cetera. They are looking to get units into the UK end of this year, beginning of next year, and I think that really starts to accelerate things as well, because I think once people can actually see the units and the technology firsthand, I think that is an important step.

Speaker #2: They're looking to get units into the UK at the end of this year, beginning of next year. And I think that really starts to accelerate things as well.

Speaker #2: Because I think once people can actually see the units and the technology firsthand, I think that's important stuff.

Speaker #1: Good morning. Alex Ohanen from Pamir Liberum. Well done on a strong first half. The first question I just wanted to pick up on is something you said.

Alex O'Hanlon: Good morning. Alex O'Hanlon from Panmure Liberum. Well done on a strong H1. The first question I just wanted to pick up on is something you said, Stuart, around strengthening partner-centric values and behaviors. Could you just give us a bit more detail on what that means and how you track and monitor it?

Speaker #1: So, you're talking about strengthening partner-centric values and behaviors. Could you give us a bit more detail on what that means, and how you track and monitor it?

Speaker #4: So, I mean, this is a cultural program that we've got working. We've essentially refreshed the company values and we've rolled them out. The people team have done a great job communicating that across the business.

Stuart Paynter: This is a cultural program that we have got working. We have essentially refreshed the company values, and we have rolled them out and the people team have done a great job in communicating that across the business. Like any cultural program, actually the proof of the pudding is in the long term. You bake all of those cultural values into your hiring programs and your communications and we are not trying to change massively the people that are already at Ceres. All mission-focused, very purpose-driven, and we are just trying to make sure everything is perfectly aligned. How do you assess cultural success? Ultimately, the proof of the pudding is in the long-term health of the business, and we think certainly in the H1, we have seen a good record of execution and the pipeline health is looking good.

Speaker #4: And like any cultural program, actually the proof of the pudding is in the long term. So, you bake all those cultural values into your hiring programs and your communications.

Speaker #4: And I mean, we're not trying to change massively the people that are already at Ceres. We're all mission-focused, very purpose-driven, and we're just trying to make sure everything's perfectly aligned.

Speaker #4: And how do you assess cultural success? Ultimately, the proof of the pudding is in the long term health of the business. And we think certainly in the first half, we've seen a good record of execution.

Speaker #4: And the pipeline health's looking good, so I think we think it's a great job in rolling this out.

Stuart Paynter: So I think we think it's working, and the people team are doing a great job in rolling this out.

Speaker #1: Great, thank you. And then just one other, probably slightly technical question. Last year, you signed the Weichai agreement in November, and obviously, there's a bit of time that it takes for tech transfer, and therefore before you can recognize revenue.

Alex O'Hanlon: Great. Thank you. Then just one other probably slightly technical question. Last year, you signed the Weichai agreement in November, and obviously there's a bit of time that it takes for tech transfer and then therefore before you can recognize revenue. Should we be thinking in terms of if you're going to sign potentially a new MLA, that that tech transfer could happen quicker, or is that 2 months probably where we should be thinking of? Because I know you said that you're confident in the GBP 45 million and anything else would be additional on top of that.

Speaker #1: Should we be thinking in terms of, if you can assign potentially a new MLA, that tech transfer could happen quicker? Or is kind of that two months probably where we should kind of be thinking, because I know you've said that you're confident in the £45 million.

Speaker #1: And anything else would be additional on top of that.

Speaker #4: Yeah. Look, revenue recognition is not that simple when it comes to big contracts, and it does depend on how the contracts are worded and written.

Stuart Paynter: Yeah, look, revenue recognition is not that simple

Alex O'Hanlon: Yeah

Stuart Paynter: when it comes to big contracts. It does depend how the contracts are worded, written, and of course, contracts are negotiated by two parties, and they've got to survive the battle, essentially. So, we do our best to make it as predictable as possible. It's not that predictable. But we're fairly confident that we can both sign and recognize revenue in this calendar year for a new MLA. But we are well aware of our obligations, both in terms of the guidance we've given and the consensus that's out there, that we've got to be very clear and transparent with the market when the time is right.

Alex O'Hanlon: Yeah

Speaker #4: And, of course, contracts are negotiated by two parties, and they've got to survive the battle, essentially. So we do our best to make it as predictable as possible.

Speaker #4: It's not that predictable, but we're fairly confident that we can both sign and recognize revenue in this calendar year for a new MLA. We are well aware of our obligations, both in terms of the guidance we've given and the consensus that's out there, that we've got to be very clear and transparent with the market when the time is right.

Speaker #4: So, we are something we track. And certainly, part of the progress we're making in the investment we've made in our commercial teams is the contracts are now at least templated to be a lot more clear on when the revenue recognition occurs than the Weichai contract, which was a very sort of old— it was an update to a 2018 contract.

Stuart Paynter: So, it's something we track and certainly part of the progress we are making is in the investment we have made in our commercial teams. The contracts are now at least templated to be a lot more clear on when the revenue recognition occurs than the Weichai contract, which was a very old, it was an update to a 2018 contract, so it was pretty complicated. We are hoping to make things a bit simpler, but it's not clear.

Speaker #4: So, it was pretty complicated. We're hoping to make things a bit simpler, but it's not clear.

Speaker #1: Thanks, guys. Lacey Mitchelly, Bloomberg Intelligence. Just thinking about the new MLA economics—obviously, the backdrop here is completely different from what you were dealing with four or five years ago.

Lacey Mitchell: Thanks, guys. Lacey Mitchell, Bloomberg Intelligence. Just thinking about the new MLA economics. Obviously, the backdrop here is completely different to what you were dealing with 4 or 5 years ago. Customers, they need solutions, and they need them yesterday. Does that give you more, I guess, leverage at the negotiating table when you are thinking about upfront license fees with partners? Has your thinking around any of that changed given where we are and given how quickly you can get new factories up and running? Then I think within that as well, if we think about, particularly, Phil, you talked about the 800V DC compatibility, early estimates on longer-term running costs and SOFC being a lot cheaper. Does that give you any more, I guess the same question, leverage on the royalty fee you can eventually charge? Is there any change in how you are thinking about all that?

Lacie Midgley: Thanks, guys. Lacey Mitchell, Bloomberg Intelligence. Just thinking about the new MLA economics. Obviously, the backdrop here is completely different to what you were dealing with 4 or 5 years ago. Customers, they need solutions, and they need them yesterday. Does that give you more, I guess, leverage at the negotiating table when you are thinking about upfront license fees with partners? Has your thinking around any of that changed given where we are and given how quickly you can get new factories up and running? Then I think within that as well, if we think about, particularly, Phil, you talked about the 800V DC compatibility, early estimates on longer-term running costs and SOFC being a lot cheaper. Does that give you any more, I guess the same question, leverage on the royalty fee you can eventually charge? Is there any change in how you are thinking about all that?

Speaker #1: Customers need solutions, and they need them yesterday. I mean, does that give you more, I guess, leverage at the negotiating table when you're thinking about upfront license fees with partners?

Speaker #1: Has your thinking around any of that changed, given where we are and given how quickly you can now get new factories up and running?

Speaker #1: And then I think, within that as well, if we think about Phil—in particular, you talked about the 800 VDC compatibility—early estimates on longer-term running costs of SOFC being a lot cheaper.

Speaker #1: Does that give you any more, I guess, the same question: leverage on the royalty fee you can eventually charge? And is there any change in how you're thinking about all of that?

Speaker #1: I know, ultimately, there's a higher setup cost here, and you just want MLAs and new partners on board. But has any of that thinking changed at all, given the backdrop?

Lacey Mitchell: I know ultimately there's a higher

Lacie Midgley: I know ultimately there's a higher

Phil Caldwell: Yeah

Lacey Mitchell: set up cost here and you just want MLAs and new partners on board, but has any of that thinking changed at all given the backdrop?

Lacie Midgley: set up cost here and you just want MLAs and new partners on board, but has any of that thinking changed at all given the backdrop?

Speaker #2: I think we haven't changed our thinking to date on license fees. But obviously, as we're starting to get more demand or competition, I think it certainly helps—it strengthens our position.

Phil Caldwell: I think we haven't changed our thinking to date on license fees. But obviously, as we're starting to get more demand or competition, I think it certainly helps. It strengthens our position. But the license fees are helpful in terms of the funding of the day-to-day business. But really what's more important is scale-up and royalties. We've just got to be a bit careful that when we're negotiating these deals, if the license fees are too high, before people get into the market and pay back, you don't want to skew that investment decision.

Speaker #2: But the license fees are helpful in terms of the funding of the day-to-day business. But really, what's more important is scale-up and royalties.

Speaker #2: And we've just got to be a bit careful that when we're negotiating these deals, if the license fees are too high, before people get into the market and pay back, you don't want to skew that investment decision.

Speaker #2: But I think on the royalty side, given the benefits that we're seeing and the potential of SOFC, I think the royalties then become, let's say, more sustainable. As in, you obviously negotiate royalties going into a contract.

Phil Caldwell: But I think on the royalty side, I think given the benefits that we're seeing and the potential of SOFC, I think the royalties then become, let's say, more sustainable, as in, you obviously negotiate royalties going into a contract, but five years, 10 years in, you want to be preserving those royalties and for new contracts, potentially you could negotiate even higher royalties in the future. Haven't changed it fundamentally. I would say, though each commercial negotiation has nuances, and depends on what the scope is and the size of the customer and the scale of ambition is, the attractiveness of those partners to us obviously has a factor as well. So the longer term is more important to us than the near term.

Speaker #2: But five years, ten years in, you want to be preserving those royalties. And for new contracts, potentially, you could negotiate even higher royalties in the future.

Speaker #2: It is, fundamentally. I would say, though, each commercial negotiation has nuances and depends on what the scope is, the size of the customer, and what the scale of ambition is.

Speaker #2: The attractiveness of those partners to us obviously is a factor as well. So, the longer term is more important to us than the near term.

Speaker #1: Understood. OK, thank you. And just checking on Delta's second factory—presumably, that's covered by the existing MLA. How should we think about other partners that are looking to scale as that demand grows?

Lacey Mitchell: Understood. Okay. Thank you. Just checking on Delta's second factory, presumably that's covered by the existing MLA. How do we think about other

Lacie Midgley: Understood. Okay. Thank you. Just checking on Delta's second factory, presumably that's covered by the existing MLA. How do we think about other

Phil Caldwell: Yeah

Lacey Mitchell: partners that are looking to scale as that demand is there?

Lacie Midgley: partners that are looking to scale as that demand is there?

Speaker #2: Yeah, we don't charge additional fees for additional scale. We don't make it volume-limited. We actually want people to scale. So, Delta, we've got the license they need.

Phil Caldwell: Yeah, we do not charge additional fees for additional scale. We do not make it volume limited. We actually want people

Lacey Mitchell: Yeah

Lacie Midgley: Yeah

Phil Caldwell: to scale. Delta has got the license they need to scale, and then it is just the investment decisions on new factories, et cetera. I think the first one, Guanyin District, was always going to be almost like a development factory because the footprint and everything else was somewhat constrained, and this is a brand-new facility that they are now investing in.

Speaker #2: To scale. And then it's just the investment decisions on new factories, et cetera. I think the first one, Tai Nam, is always going to be almost like a development factory because the footprint and everything else was somewhat constrained.

Speaker #2: And this is a brand-new facility that they're now investing in.

Speaker #1: Thank you.

Lacey Mitchell: Thank you.

Lacie Midgley: Thank you.

Speaker #3: Hi, Sky Landon with Rothschild. First question: on wage high revenue recognition, are you able to share a little bit about, I guess, the percentage that was in 1H and the percentage in 2H, just as we're thinking about the $45 million?

Skye Landon: Hi. Skye Landon with Rothschild. First question, on Weichai revenue recognition, are you able to share a little bit about the, I guess, the percentage that was in H1 and percentage in H2, just as we are thinking about the GBP 45 million? Then second question, I guess a follow-up on the partner expansion with Doosan. They have obviously had the success that they have seen in getting orders, getting pipeline in. Have they shown any interest in increasing the size of their initial factory? Thanks.

Speaker #3: And then, second question— I guess a follow-up on the partner expansion with Dusan. They've obviously had the success that they've seen in getting orders and building pipeline in.

Speaker #3: Have they shown any interest in the factory? Thanks.

Speaker #4: So, first question first. The majority of the revenue is going to be in Q1 for wage high because it was signed in November last year.

Stuart Paynter: First question first. The majority of the revenue is going to be Q1 for Weichai because it was signed in November last year, and the full tech transfer happened in H1. We will have some Weichai revenues in H2 of the year, but the majority would have been in the first.

Speaker #4: And the full tech transfer happened in the first half. So we'll have some wage-high revenues in the second half of the year, but the majority would have been in the first.

Speaker #2: Second part of the question — we obviously stay close to Dusan. What we would like them to do at some stage is to move to the insurer platform, because Dusan is an earlier partner.

Phil Caldwell: Second part of the question. We obviously stay close to Doosan, and what we would like them to do at some stage is to move to the Endura platform because Doosan is an earlier partner around what I would call the first generation technology, which is the slightly smaller footprint, slightly smaller stack size. But obviously they are now getting orders. They want to fill that factory. It is an ongoing business decision for Doosan really that expansion, either that conversion or additionality. Doosan, I am sure, will update the market as and when they are thinking about expansion.

Speaker #2: Around what I would call the first generation technology, which is the slightly smaller footprint, slightly smaller stack size. But obviously, they're now getting orders.

Speaker #2: They want to fill that factory, so it's an ongoing business decision for Dusan, really—that conversion or additionality. So Dusan, I'm sure, will update the market as and when they're thinking about expansion.

Speaker #1: Great. If there's

Operator: Great. If there are no further questions in the room just for now, maybe Merryl can come back to you. I know you have got quite a lot of questions online, so some of which I think you may have touched upon, but if I may just hand back to you.

Speaker #3: No further questions in the room just for now. Maybe Meryl can come back to you. I know you've got quite a lot of questions online.

Speaker #3: Some of which I think you may have touched upon, but if I may, I'll just hand back to you.

Speaker #1: Yep. So, why don't we stay on the vein of Dusan? One of the questions is their announcement of the contract with Rivarian. What can Ceres expect from the value of those royalty payments?

Merryl Black: Yep. While we stay on the vein of Doosan, one of the questions are, their announcement of the contract with Reverion, what can Ceres expect from the value of those royalty payments, and is this a one-off fee or will this be ongoing?

Speaker #1: And is this a one-off fee, or will this be ongoing?

Phil Caldwell: Again, it is part of the license deal they have. So when they sell product, we get royalties. So it is within the standard range that we always say that we receive between GBP 1,500 a kilowatt, depending on the scope of what they are selling. So we just expect to receive payment via royalties.

Speaker #2: It's part of again, it's part of the license deal they have. So when they sell product, we get royalties. So it's within the standard range that we always say that we receive between 1,500 dollars a kilowatt depending on the scope of what they're selling.

Speaker #2: And so, we just expect to receive payment via royalties.

Speaker #1: Great. Another question, which is slightly more technical, is referencing the cost competitiveness. And how does that impact based on natural gas prices? And then, are our power partners primarily targeting natural gas as the power source for the SOFC?

Merryl Black: Great. Another question, which is slightly more technical, is referencing the cost competitiveness and how does that impact based on natural gas prices, and then are our power partners primarily targeting natural gas as the power source for the SOFC?

Speaker #2: So it's reliant on the difference between the power price and the gas price. So because basically, very simply, what we're doing is we're taking if it's natural gas as the fuel, we're taking natural gas and converting it at a 60% efficiency into power.

Phil Caldwell: Well, it is reliant on the difference between the power price and the gas price. Because basically, very simply what we are doing is we are taking, if it is natural gas as the fuel, we are taking natural gas and converting it at a 60% efficiency into power, or higher if we use the heat or the cooling. So, it is very much reliant on where you are actually putting this. So for example, one of the reasons why it is attractive in the UK is we have got some of the highest power prices in the world. And actually our spark spread, the difference between our gas price and our power price, is actually very attractive for this technology. Now, okay, if gas prices go up, it depends on what is the knock-on effect on the power price, but there is quite a big margin there. So it is competitive today in certain geographies.

Speaker #2: Or higher if we use the heat or the cooling. So it's very much reliant on where you're actually putting this. For example, one of the reasons why it's attractive in the UK is we've got some of the highest power prices in the world.

Speaker #2: And actually, our sparks for distributing our gas price and our power price are actually very attractive for this technology. Now, OK, if gas prices go up, it depends on what the knock-on effect is on the power price.

Phil Caldwell: And actually our spark spread, the difference between our gas price and our power price, is actually very attractive for this technology. Now, okay, if gas prices go up, it depends on what is the knock-on effect on the power price, but there is quite a big margin there. So it is competitive today in certain geographies.

Speaker #2: But there's quite a big margin there, so it is competitive today in certain geographies. It depends on where you're looking at that. To answer the question today, it's natural gas-based.

Phil Caldwell: It depends on where you are looking at that. To answer the question, today, it is natural gas-based.

Speaker #2: Rivarian are also tapping into things like the biogas market in Germany. And it can be future fuels such as hydrogen, but today it's natural gas.

Phil Caldwell: Reverion are also tapping into things like the biogas market in Germany, and it can be future fuels such as hydrogen. Today it is natural gas.

Speaker #1: Great. Stuart, a question for you: we continue to spend heavily in R&D, with around £48.6 million in 2025. I'm just wondering if we will continue to have that level of R&D expenditure going into the future?

Merryl Black: Great. Stuart, a question towards you is that we continue to spend heavily in R&D with around GBP 48.6 in 2025, and just querying if we will continue to have that type of R&D expenditure going into the future, or will we see it going down or up?

Speaker #1: Or will we see it going down or up?

Speaker #4: Well, if you're comparing to 2025, it's going to go down. I mean, you saw on the slide—the R&D cost went from, say, £25 million in the first half of 2025 to £18 million in the first half of 2026.

Stuart Paynter: Well, if you are comparing to 2025, it is going to go down. You saw on the slide the R&D cost went from, say, GBP 25 in the H1 of 2025 to GBP 18 in the H1 of 2026. So, that is representative of the crystallization of the effort to produce Endura. So Endura, as a project, is now in the commercialized world. So, we have chosen to have a look at that R&D cost base, optimize it, which we believe we have now done, and that is going to roll forward. So we believe we have got the right number of people in the right jobs to keep on innovating on lifetime and cost without having to be spending the amount that we took to actually get Endura to the market.

Speaker #4: So that is representative of the crystallization of the effort to produce Insurer. So Insurer as a project is now in the commercialized world. So we've chosen to have a look at that R&D cost base, optimize it, which we believe we've now done.

Speaker #4: And that's going to roll forward. So we believe we've got the right number of people in the right jobs to keep on innovating on lifetime and cost, without having to be spending the amount that we took to actually get Insurer to the market.

Speaker #1: One of the questions, in a similar vein, is: As we intend to sign more partners over the next couple of years, how should investors think about the evolution of the revenue mix?

Merryl Black: Thank you. One of the questions on a similar vein is, as we intend to sign more partners over the next couple of years, how should investors think about the evolution of revenue mix?

Speaker #2: I think today, if you look at the revenue mix, it's that combination: license fees, engineering services, and as we sign more partners, we can expect that for the next few years.

Phil Caldwell: I think today, if you look at the revenue mix, it's that combination. License fees, engineering services.

Phil Caldwell: As we sign more partners, we can expect that for the next few years. Royalties are there, but they are not yet material, I would say, but they should start to grow into next year in 2028, 2029, et cetera. So royalties will become more of that revenue mix in the future and towards the late stage of this decade, they are going to be significant because that's when we expect cumulatively our partners scaling to the high levels, around 1 gigawatt or more by that stage.

Speaker #2: Royalties are there, but they are not yet material, I would say. However, they should start to grow into next year and 2028, 2029, et cetera.

Speaker #2: So royalties will become more of that revenue mix in the future, and towards the late stage of this decade, they're going to be significant because that's when we expect, cumulatively, our partners scaling to the high levels—around a gigawatt or more—by that stage.

Speaker #1: Great, thank you. One of the other questions was, just given the interest in behind-the-meter, do we anticipate having more than one licensee this year?

Merryl Black: Great. Thank you. One of the other questions was just given the interest in behind the meter, do we anticipate having more than one licensee this year, or could we have more in next year just given the demand and coming back to that pipeline, just it's come up a couple of times. I thought it might be helpful to reiterate.

Speaker #1: Or could we have more in next year, just given the demand and kind of coming back to that pipeline, which has come up a couple of times?

Speaker #1: I thought it might be helpful to reiterate.

Speaker #2: Look, we've based the business on one a year on average. The thing that is very unpredictable is timing. A few years ago, we had two in one year, none in the year before, et cetera.

Phil Caldwell: Look, we've based the business on one a year on average. The thing that is very unpredictable is timing. A few years ago, we had two in one year, none in the year before, et cetera. So I think it's highly possible that you can have a year where there's more than one, particularly as momentum builds. But the guidance we have is one a year, of the quality of partners that we want, really gets us to that industry standard.

Speaker #2: But, so, I think it's entirely possible that you can have a year where there's more than one, particularly as momentum builds. But the guidance we have is one a year; the quality of partners that we want really gets us to that industry standard.

Speaker #4: And we do try and think of this as sort of cadence rather than in year. Because the year end, albeit we've all we're all in the finance world.

Stuart Paynter: We do try and think of this as cadence rather than in year, because the year end, albeit that we are all in the finance world, we all have to adhere to the year end. What we are looking at is an average cadence of one every 12 months. We do not know whether two arrive at once and then there is a gap or two, then one, then a gap. We do not know which year they are going to fall into necessarily. But what we are looking at the average cadence of the signings of these things.

Speaker #4: We all have to adhere to the year-end. What we're looking at is an average cadence of one every 12 months. So, we don't know whether two arrive at once and then there's a gap.

Speaker #4: Or two, then one, then a gap. And we don't know which year they're going to fall into, necessarily. But what we're looking at is the average cadence of the signings of these things.

Speaker #1: Great. I think just one final question: as a UK tech company, I’m wondering if we are in discussion with the UK government to explore initiatives or partnerships that may be available?

Merryl Black: Great. I think one final question is, as a UK tech company, I am wondering if we are in discussion with the UK government to explore initiatives or partnerships that may be available.

Speaker #2: We have obviously got a strong relationship with the government. We do various things—trade missions, et cetera. I was fortunate enough to go with the previous Prime Minister on the India trade missions, et cetera.

Phil Caldwell: We have obviously got a strong relationship with the government. We do various things, trade missions, et cetera. I was fortunate enough to go with the previous prime minister on the India trade missions, et cetera. We have done that in the past to Asia. So we do work with government, get government support. In terms of financial support, the business right now is pretty well capitalized.

Speaker #2: We've done that in the past in Asia, so we do work with government and get government support. In terms of financial support, the business right now is pretty well capitalized.

Speaker #2: So there might be certain needs or projects where government can help, but we've never relied on government funding; that's, and we don't really rely on subsidies either.

Phil Caldwell: There might be certain needs or projects where government can help. But we have never relied on government funding. We do not really rely on subsidies either. We are very much a commercial operation.

Speaker #2: We're very much a commercial operation, and we're very proud to be in the UK. But the global opportunity is there—that we're very self-sufficient.

Phil Caldwell: We are very proud to be in the UK, but the global opportunity is there that we are very self-sufficient.

Speaker #1: Excellent. I think those cover the majority of the questions and the key themes. So I'll hand back to you, Phil, for any closing remarks.

Merryl Black: Excellent. I think those cover the majority of the questions and the key themes, so I will hand back to you, Phil, for any closing remarks.

Speaker #2: Yeah, look, I'll just reiterate: I think it's a really exciting time in the business right now. We're obviously very engaged on both new partnership acquisition and also—by any means, our focus is very much on the scale-up of our existing partners at the same time.

Phil Caldwell: Yeah, look, I just reiterate, I think it is a really exciting time in the business right now. We are obviously very engaged on both new partnership acquisition and also not by any means. Our focus is very much on the scale-up of our existing partners at the same time. So we have got the business in the right shape to be able to do both, and we will update you obviously on progress as and when we get more announcements. I think, with our existing partners, they are in that stage of starting to scale, starting to launch new products, et cetera. I think we will get more news flow from some of those guys as and when they start to actually come forward. So I think there is quite a lot to look forward to.

Speaker #2: So, we've got the business in the right shape to be able to do both, and we'll update you, obviously, on progress as and when we get more announcements.

Speaker #2: I think with our existing partners, they're in that stage of starting to scale. Starting to launch new products, et cetera. I think we'll get more news flow from some of those guys as well as and when they start to actually come forward.

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Q2 2026 Ceres Power Holdings PLC Earnings Call

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