Lhyfe: Revenue Doubles, But Losses Widen

Impressive Business Growth

Lhyfe's revenue figures display undeniable momentum. The company's revenue nearly doubled in 2025, rising from €5.1 million to €9.8 million, supported by an expanded client portfolio and accelerated deliveries in France, Germany, and Sweden. The number of delivered clients increased by nearly 60%, with the group completing over 850 deliveries across 9 European countries, an increase of approximately 80% compared to 2024. This logistical expansion is supported by a fleet of over 80 type 4 hydrogen containers, touted as one of the largest modern bulk hydrogen transport fleets in the European Union. Concurrently, the total installed electrolysis capacity is set to increase by 70%, with six existing or under-construction production sites facilitating an accelerated operational ramp-up. Commercially, Lhyfe secured several multi-year strategic contracts, including with SETRAM to supply hydrogen buses in the Le Mans metropolitan area, and continued to strengthen its presence at hydrogen refueling stations and with industrial clients across Europe.

Underlying Financial Challenges

However, this commercial growth masks a less flattering financial reality. The current operating loss deepened to €39.4 million in 2025, from €28.7 million in 2024, while the operating result (including non-recurring charges) reached a loss of €47.6 million, up from €29.0 million the previous year. The adjusted EBITDA remains strongly negative at €27.4 million. According to the press release, this deterioration results from an increase in external charges by €3.5 million (rising from €12.5 million to €16.0 million), mainly due to amplified hydrogen transport costs driven by increased activity and costs associated with the commissioning of sites. It is also attributable to an increase in depreciation allowances of €4.1 million, reflecting the accumulation of new production and storage assets. The net loss for the period stands at €51.0 million, compared to €29.2 million in 2024. Adjusted for restructuring charges, this loss amounts to €42.8 million. The company justifies these one-time overruns with charges related to its restructuring announced at the end of 2025, including €3.4 million in employee departure costs and asset impairments related to certain abandoned projects following the redeployment of priorities.

Ambitious Recovery Plan

In response to this situation, Lhyfe has announced an ambitious recovery plan. The group aims to reduce its structural costs by about 30% starting in 2026, leading to a net reduction of approximately 60 positions over the year. Simultaneously, it plans to outsource engineering and construction (EPC) activities while retaining their management, repositioning its organization around two key businesses: operation (Own) and development (Develop). For 2026, Lhyfe anticipates a significant 50% increase in RFNBO hydrogen sales revenue compared to 2025, fueled by contributions from newly commissioned sites and a commercial strategy combining direct and indirect sales through a reseller network. The group has a robust cash position of €74.7 million and has validated an innovative financing model, with the success in 2025 of a refinancing operation covering a portfolio of four sites for €53 million. Concurrently, the development project portfolio totals 1.4 GW of capacity, with €208 million in secured grants, including €149 million for the flagship Green Horizon project in Le Havre. The challenge for investors remains clear: to transform this business growth into real profitability, a challenge that cost reduction and structural optimization should help address, provided that the regulatory and industrial demand for green hydrogen confirmed by European reforms (RED III directive, UK HAR, French mechanisms) materializes as planned.