HRS: Gross Margin Adjusted by 22.7 Points, Annual Revenue Target Lowered
HRS released its results for the first half of fiscal year 2025-2026 (ending December 31, 2025) in a context of a slowdown in the hydrogen market. The French designer of hydrogen refueling stations shows a certain operational improvement, particularly in gross margin and fixed costs, but this improvement is not enough to offset the noticeable decline in its business outlook. The group significantly reduces its annual guidance, signaling a temporary but significant shift in the conversion of its commercial portfolio into firm orders.
Revenue Up, Gross Margin Adjusted by 22.7 Points
The semi-annual revenue amounted to €8.6 million, up 16% compared to the corresponding semester of 2024-2025 (€7.4 million). This growth is driven by hydrogen station activities (+21%) and maintenance (+33%). Maintenance revenues reached €0.6 million, validating the strategy of establishing a base of recurring revenues with controlled margins. The gross margin reached a significant milestone at 37.7% in the first half of 2025-2026, compared to 15.0% in the first half of 2024-2025, an increase of 22.7 points. This improvement is explained by better margins on the most recent stations and the reuse of components from stock. It also reflects the adjustment of activity after the restructuring efforts undertaken.
Current EBITDA Loss Reduced by Nearly Threefold, Operational Costs Down
The current EBITDA for the semester stands at -€2.4 million compared to -€6.5 million a year earlier, an improvement of €4.1 million. This significant reduction in loss reflects the cost reductions implemented through the Apollo plan. Fixed costs were reduced by about €6 million on a full-year basis, a decrease of about 30% from the baseline level. The workforce decreased from 163 employees in July 2024 to 95 in April 2026. Operational costs fell by nearly €3 million over the semester. Payroll expenses decreased by €1.1 million (€4.8 million vs €3.7 million), external expenses contracted by €0.9 million (€2.8 million vs €1.9 million), and consumed purchases decreased by €0.9 million (€6.3 million vs €5.3 million). The net result stands at -€19.6 million compared to -€10.2 million in the first half of 2024-2025. This decline reflects non-recurring items of about €15 million related to the impairment of intangible assets (-€8.1 million) and the adjustment of deferred tax assets (-€6.7 million), with no impact on cash flow.
Revenue Target Revised Downward, Order Delay Confirmed
HRS adjusts its revenue guidance for the fiscal year 2025-2026 to a range of €15 million to €20 million, down from €25 million to €35 million previously. This major revision reflects the lengthening of decision-making cycles at the European level since mid-2025 and the temporary shift in the conversion of part of the commercial portfolio into firm orders. The commercial portfolio reached €42 million as of December 31, 2025, consisting of €7.7 million in firm orders being executed and €34.3 million in orders to be received through letters of intent and framework agreements. The company anticipates an additional €2 million in full-year savings by 2026-2027. The gross cash position amounted to €4.4 million as of December 31, 2025 (compared to €6.8 million on June 30, 2025), incorporating post-closure cash flow delays of €4.2 million. HRS has initiated a sale-leaseback process for its industrial site and offices, aiming for completion in the fall of 2026, to release latent gains and allocate the freed-up cash to the group's growth. For investors, the challenge lies in realizing the delayed orders in the coming quarters and the group's ability to maintain its financial balance despite the downward revision of its targets.
