Invinity Energy Systems 2025 results: record growth, better margins, but still a cash-burning growth story
Invinity has delivered the sort of top-line growth that gets investors to sit up. Revenue and other income rose to £8.7 million, and when you add £9.1 million of project grants, the total reached £17.8 million, up 256% year-on-year.
That matters because this is not just a paper improvement. Sales jumped to 31.4 MWh from 5.2 MWh, while shipments rose to 24.9 MWh from 7.3 MWh. In plain English, Invinity sold and delivered a lot more battery capacity in 2025 than it did in 2024.
But this is not a profit story yet. The company is still loss-making, still consuming cash overall, and part of the headline growth comes from grant income rather than pure customer revenue. So the big question is whether this is the start of real scale, or just a better-looking year inside a business that still has a lot to prove.
Key numbers from Invinity Energy Systems 2025 financial results
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue and other income | £8.7 million | £5.0 million |
| Project grants | £9.1 million | £0.3 million |
| Total revenue and project grants | £17.8 million | £5.2 million |
| Battery sales | 31.4 MWh | 5.2 MWh |
| Product shipments | 24.9 MWh | 7.3 MWh |
| Gross loss | £2.9 million | £3.5 million |
| Adjusted EBITDA loss | £20.6 million | £19.3 million |
| Pre-tax loss | £24.1 million | £22.8 million |
| Cash at year end | £28.8 million | £32.4 million |
| Debt | Debt free | Debt free |
Why Invinity’s 31.4 MWh of sales is the standout number
The clearest positive in this RNS is commercial traction. A move from 5.2 MWh of sales to 31.4 MWh is not subtle. That is a six-fold increase and suggests customers are becoming more comfortable buying Invinity’s vanadium flow batteries at commercial scale.
There is also a healthy difference between sales and shipments. Shipments of 24.9 MWh mean product is physically moving out of the factories, not just sitting in a pipeline deck. For a hardware business, that is important.
The company also says average commercial deal size increased by 73% year-on-year, and that Endurium batteries were included in 16.7 GWh of UK long duration energy storage, or LDES, Cap and Floor bids across 21 bids. That does not mean 16.7 GWh of signed revenue, but it does show Invinity is now part of much bigger conversations.
Endurium cost reduction is the bit that could make or break the equity case
If you strip this down to the basics, Invinity needs to prove its batteries can become commercially attractive at scale. That is why management’s claim on cost reduction is probably the most important strategic point in the whole release.
The company says it is on target to achieve a forecast minimum 66% reduction in unit costs for Endurium versus the older VS3 product within two years. Better still, it says the majority of that programme is now close to completion roughly 18 months ahead of initial expectations.
That is a big deal because margins are improving already. Gross margin improved from -70% to -35%, and gross loss narrowed from £3.5 million to £2.9 million. Still negative, yes, but much less ugly.
My read is simple: this is the first convincing sign that Invinity’s economics may be heading in the right direction. If cost-down continues and volumes rise, losses at the gross level should keep improving. If that stalls, the investment case gets much harder.
Project grants boosted the headline growth – investors should understand that clearly
One thing retail investors should not gloss over is the role of grants. The £17.8 million headline figure includes £9.1 million of project grants, mainly linked to the Copwood VFB Energy Hub project.
A project grant is external funding, in this case from the Department for Energy Security and Net Zero, that helps pay for qualifying project costs. It is useful, real money, and strategically valuable. But it is not the same thing as recurring customer revenue.
That does not make the growth fake. It just means the quality of revenue is mixed. Reported revenue from contracts with customers was £8.2 million, up from £5.0 million, which is still solid growth but not as dramatic as the combined total suggests.
Cash, losses and funding: better than before, but not yet comfortable
Invinity ended 2025 with £28.8 million of cash and remains debt free. That is a decent buffer for an AIM growth company, especially one building manufacturing capacity and large projects.
Operating cash outflow improved to £17.2 million from £24.9 million, which is a real positive. But the company also spent heavily on investment, with investing cash outflows of £9.5 million, and it relied on a £25.0 million subscription in September to strengthen working capital.
There is still red ink across the income statement. Adjusted EBITDA loss widened to £20.6 million, administrative expenses rose to £21.9 million, and the pre-tax loss increased to £24.1 million.
The going concern statement is reassuring, up to a point. Directors say the group expects to remain cash positive through the going concern period to June 2027 without further fundraising, even under a downside case excluding unsigned pipeline contracts. But they also state plainly that additional funding would be required to fund expansion of the business.
That is the honest answer investors need. No immediate balance sheet panic, but future growth may still need more capital.
Post-period contract news gives the story more credibility
Since year end, Invinity says it has been selected to design an up to 1.5 GWh vanadium flow battery system for FlexBase Group in Switzerland. That is described as the world’s largest flow battery project to date, and the engineering design phase is underway.
On top of that, deliveries to the Copwood VFB Energy Hub were completed in May 2026, and the company announced a 2 MWh sale to a commercial and industrial project in Wisconsin.
These are important because they support the idea that 2025 was not a one-off spike. The commercial pipeline appears to be moving into larger and more visible opportunities.
What this means for retail investors in Invinity shares
This was a good operational update. Sales are up sharply, shipments are up sharply, gross margins are improving, costs are coming down, and the company has started to land bigger strategic opportunities.
The less cheerful side is that Invinity is still far from self-funding. Losses remain heavy, grant income boosted the headline, and scaling manufacturing will need disciplined execution and possibly more capital later on.
So my verdict is broadly positive, with the usual caveat attached to early-stage industrial tech. Invinity looks more credible today than it did a year ago. The next step is proving that strong order momentum can turn into repeat revenue, better margins and eventually cashflow break-even.
That is what really matters now. Not whether growth has arrived – it clearly has – but whether the business can convert that growth into a durable, investable model.
