Cavendish Hydrogen reported a 57% sequential increase in revenue for the second quarter of 2026, reaching €4.4 million, though shares remained flat after the release. The company’s Q2 2026 figures reflected strong top-line growth but continued pressure on profitability, with reported EBITDA at a negative €5.9 million due to extraordinary legal costs tied to a U.S. litigation settlement.
Underlying EBITDA, excluding one-time charges, stood at a negative €2.1 million, while order intake totaled €2.4 million. Order backlog reached €9.6 million, split roughly equally between recurring service revenue and equipment deliveries. Cash and cash equivalents stood at €16.4 million at the end of the quarter, with material costs consuming approximately half of revenue. The company’s current ratio was 5.73, and its market capitalization was $19.85 million.
Robert Borin, CEO, highlighted ongoing grid limitations in Europe, noting delays in securing grid connections for heavy-duty transport projects. He emphasized the need for hydrogen solutions capable of supporting 800-kilometer ranges with refueling times under 15 minutes. Marcus Halland, CFO, added that underlying cash usage is expected to decline in the second half of 2026 as indirect costs fall and working capital timing improves.
Cavendish Hydrogen secured €4.8 million from BHDT, representing a 15% post-transaction ownership stake, and received €1.3 million in HyMEGA funding for next-generation compressor technology development. Additional grants included €220 million for a German hydrogen infrastructure program and €45 million from the Dutch SWiM initiative, both aimed at expanding refueling station networks.
Project updates included equipment deliveries for two new stations in Italy, now entering commissioning, bringing the country’s active station count to three. In Poland, an upgraded station doubled refueling capacity for buses. A Luxembourg station order was secured through French EPC partner MPH, with installation scheduled for 2027. Germany’s OVAG bus project advanced to the equipment delivery phase following permitting completion.
Management reiterated a long-term EBITDA margin target of 10% to 15%, acknowledging the company remains far from this level and requires a significant revenue ramp. Facilities are currently capable of supporting production of hundreds of stations without new capital investment. The company also targets over 50% energy savings in its next-generation compressors and expects final investment decisions and supplier awards in mid-2027.
