AFC Energy PLC (AIM:AFC, OTC:AFGYF, FRA:QC8) believes that 2026 will be the year its pipeline of hydrogen opportunities converts into contractual orders and the beginning of sustained revenue growth.
That is the message from chief executive John Wilson as the company reports its full-year results for the year ended 31 October 2025, a period defined less by what was sold than by what was built.
The commercial infrastructure Wilson is pointing to includes the launch of the LC30, a 30kW fuel cell generator that arrived after the period end with around 85% lower costs, up to 20% better efficiency and more than 95% fewer components than its predecessor.
The stripped-back design has already generated inbound commercial interest. Alongside it sits the Hy-5 ammonia cracker, capable of producing 500kg of hydrogen per day and targeted for delivery by the end of calendar year 2026, with a stated price point of £10 per kilogram that the company says makes it one of the most cost-competitive low-carbon hydrogen suppliers in the UK.
The deals already on the table
The outlook is not entirely prospective. A joint development agreement with Komatsu, worth around $2 million, to integrate AFC Energy's ammonia cracking technology with a Komatsu industrial diesel engine, was signed after the period end.
A separate JDA with an unnamed S&P 500 partner to develop decentralised ammonia-to-hydrogen crackers has completed its first phase, with commercial discussions ongoing before the next phase begins.
A venture with Industrial Chemicals Group is targeting bulk hydrogen production for UK industrial customers by the end of 2026, subject to permitting. An Environment Agency permit has already been secured for the company's pilot cracker in Dunsfold, pulling that revenue stream forward by three to four months.
The manufacturing side has also been addressed. A strategic partnership with Volex to produce fuel cell generators at scale removes a bottleneck that has historically constrained deployment.
Meanwhile, the JV Speedy Hydrogen Solutions delivered multiple successful deployments of the AR2 30kW generator during the year, including a 200kW liquid-cooled system at the FIA Extreme H World Cup in Saudi Arabia.
The financials
The financial results reflect a company still absorbing the cost of its ambitions. The loss after tax widened to £22.2 million from £17.4 million in the prior year, though £8.4 million of that increase was non-cash, covering stock and debtor write-offs, higher depreciation and amortisation, and share-based payments.
R&D investment rose to £11.7 million from £9.5 million. A £27.5 million fundraising in July 2025, which was oversubscribed, left the company with £25.3 million in cash and short-term investments at year-end, falling to £20.4 million by the end of January 2026.
The business has also been restructured. Headcount and footprint have been reduced, a project management office and commercial function established, and three senior appointments made: a programme director, chief strategy officer and chief commercial officer, to give the commercial push the leadership it previously lacked.