2026 Interims Results

21 September 2026

Invinity Energy Systems plc

("Invinity" or the "Company")

2026 Interim Results

Invinity Energy Systems plc (AIM: IES), a global leader in vanadium flow battery technology, announces its unaudited consolidated results for the six months ended 30 June 2026 (the "Period") and an update on trading in the year to date.

The Company will hold a virtual meeting for analysts at 9.30 a.m. today. Analysts wishing to attend are kindly asked to email [email protected].

Invinity's management team will host a virtual results presentation and interactive Q&A via the Investor Meet Company platform for all shareholders and investors at 4.30 p.m. UK Time on Tuesday 22 September - please register for free here.

H1 2026 SUMMARY

· Customer Orders increased nearly threefold to 34.2 MWh during the period (H1 2025: 11.7 MWh);

· Contracted by FlexBase Group to design a 1.5 GWh (rising to 2.1 GWh in subsequent phase) vanadium flow battery system, expected to be the world's largest, for its Laufenburg Technology Centre project in Switzerland;

· Completed delivery of a 20.7 MWh vanadium flow battery system to the Copwood VFB Energy Hub in East Sussex, UK - Europe's largest to date and the first UK project of its kind at this scale; Grid connection expected to be completed shortly allowing for full commissioning and first revenue generation.

· Frontier Power's Legacy project was selected to progress under Window 1 of the UK LDES Cap and Floor Scheme, which is currently expected to incorporate up to 260 MWh of Invinity VFBs;

· Revenue and Project Grant Income increased to £1.7m (H1 2025: £0.9m);

· Gross Loss reduced by 62% to £0.7m (H1 2025: £1.9m), reflecting improved product margins resulting from the cost down programme, reduced warranty costs and increased manufacturing activities supporting higher absorption of factory overhead;

· Loss for the Period increased by 14% to £12.1m (H1 2025: £10.6m) reflecting increased investment in R&D to deliver the Company's cost-down programme;

· Net Cash of £10.5m. Increase in receivables to £2.5m (H1 2025: £0.5m) and inventory & prepaid inventory to £14.2m (H1 2025: £14.1m) reflects work completed in H1 2026 for deliveries and cash conversion over the next 6 months; and

· Volker Beckers CBE appointed as Non-Executive Director, strengthening the Company's Board with over 30 years of energy industry experience, including over 10 years as CFO and subsequently CEO of RWE Npower plc.

POST-PERIOD HIGHLIGHTS

· Secured a 43 MWh order from Dairyland Power Cooperative, the Company's largest order to date, bringing 2026 secured customer orders to 77.2 MWh. Project to be delivered from Invinity's proposed U.S. manufacturing facility which remains on track to be established by year end;

· Further achievements under the Endurium cost reduction programme, with the Company remaining on track to achieve a minimum 66% cost reduction for Endurium product deliveries (2027) vs. previous generation;

· 11 GWh of energy now dispatched by Invinity batteries in service to customers, further strengthening the Company's strong track record of operation and delivery - an increase from the 10 GWh recently announced in August;

· Engineering phase of the FlexBase project continues to progress strongly against expected milestones:

o  Equans Switzerland appointed as engineering, procurement and construction partner for the engineering phase of the project;

o  UK Trade Commissioner to Europe visited site in September and commended the project as "a great example of British innovation and the ability of UK companies to compete and succeed internationally".

COMMERCIAL OUTLOOK

The Company confirms that trading remains in line with management expectations for the full year, with revenue recognition expected to be strongly weighted towards H2 2026, subject to anticipated project delivery timings.

Invinity's total pipeline of commercial interest currently exceeds 12.5 GWh and is concentrated in the rapidly growing renewable energy and datacentre sectors across North America and Europe.

The Company's committed orderbook currently exceeds 77 MWh for delivery across FY 2026-2028. This figure provides firm coverage over the substantial majority of expected FY 2026 and more than half of FY 2027 revenue expectations.

Further orders, primarily for delivery across FY 2027 and FY 2028 are expected to convert from the Company's existing 0.8 GWh of Frameworks, comprising signed Framework Agreements, Master Supply Agreements and other customer arrangements which are progressing towards firm orders. These agreements provide substantial support for expected FY 2027 revenues and establish a strong foundation for FY 2028, further increasing the visibility of the Company's medium-term revenue outlook.

Beyond this, Invinity has developed an 11.8 GWh Development Pipeline representing projects under commercial negotiation where the customer is engaging with Invinity in a procurement process and/or submitted Invinity's products to a public procurement scheme.

The table below summarises the commercial revenue outlook for 2026-2028 based on the current pipeline:

Where:

· Order Book reflects signed unconditional contracts expected to generate revenue in the relevant year that have either been delivered (and revenue recognised) or are in the fulfilment phase. Risks related to supply chain and the timing of revenue recognition remain.

· Frameworks include projects where the customer has signed an MoU, Master Services Agreement or contract subject to Notice-to-Proceed. Invinity has lower confidence in assessing the timing of delivery and revenue for these projects as risks related to final documentation and financing remain.

· Development Pipeline includes projects where the customer has engaged Invinity in a procurement process, submitted Invinity's products to a public procurement scheme or applied for relevant permits. Figures presented are risk-weighted taking into account uncertainty of conversion in the relevant time period. For the avoidance of doubt this is not an exhaustive list of all the leads with potential customers. Revenue is expected to be recognised in the relevant year, however commercial and site-specific development risks remain.

NON-EXECUTIVE CHAIRMAN RETIREMENT AND SUCCESSION PROCESS

As part of the Board's ongoing succession planning process, Neil O'Brien has informed the Board of his intention to retire as Chairman and step down from the Board following ten years of service. The Board has commenced a formal process to identify and appoint a successor and Neil will remain in his role until an orderly transition has been completed. Further announcements will be made in due course.

Jonathan Marren, Chief Executive Officer at Invinity said:

"The rapid growth of AI, electrification and renewables is driving demand for exactly the kind of flexible, high-throughput energy storage Invinity provides, and these results mark a clear step forward in our transition from technology leader to commercially scaling business.

"Orders have grown nearly threefold and demand has accelerated further in the year to date. Our fleet has now dispatched 11 GWh of energy in service to our customers, evidencing a strong and growing track record and at the same time, our cost reduction programme is delivering ahead of expectations, materially strengthening our competitive positioning in the market. The Company is entering a new phase defined by commercial scale-up and execution and I'm excited about the opportunity ahead of us."

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Notes to Editors

Invinity Energy Systems plc (AIM: IES) is a world-leading manufacturer of vanadium flow batteries for energy storage. Built in our factories in the UK and Canada, the Company's proven, commercialised, longer duration energy storage technology has been deployed at scale and dispatched gigawatt-hours of electricity for customers across the world.

Invinity's safe, scalable and durable battery technology is a trusted and safer alternative to lithium-ion batteries. Endurium VFBs are engineered for heavy-duty, high throughput applications, they don't wear out, cannot catch fire and are designed to be operated for 30 years or more. Our products address the challenges of our global energy system, unlocking the power of renewable generation by delivering energy storage without limits.

To find out more, visit invinity.com, sign up to our monthly Investor Newsletter here or contact Investor Relations on +44 (0)20 4551 0361 or [email protected].

2026 Interim Report

H1 2026 and the year to date have been characterised by a significant step forward in Invinity's transition from a technology leader to a commercially scaling energy storage business at a time when the rapid growth of AI, electrification and renewable energy is increasing demand for flexible, high-throughput energy storage solutions. The Company is growing rapidly from a solid foundation, built on three core elements:

1. A proven and highly differentiated technology platform. Invinity's vanadium flow battery technology provides operational flexibility that customers increasingly value as energy systems continue to evolve in what is being termed "The Age of Electricity".

2. A large and growing base of operating data, validated by customers and third-parties in real-world use. 11 GWh of energy has now been dispatched by our global battery fleet, demonstrating our growing operational track record.

3. Rapidly improving commercial competitiveness through product cost reduction. The Company successfully reduced product costs by 60% over the VS3 product lifecycle prior to the launch of Endurium in 2024 and Invinity remains on track to achieve a further 66% reduction in Endurium product cost for deliveries in Q1 2027. The progress achieved to date validates a clear pathway towards further reductions through 2030 as manufacturing volumes increase, supply chains mature and additional technology improvements are incorporated into future generations of the Endurium platform.

Evidence of improving commercial competitiveness was most notable during the Period, which saw a significant acceleration in commercial activity. Customer orders increased nearly threefold year-on-year to 34.2 MWh and have subsequently increased to 77.2 MWh following the 43 MWh order received from Dairyland Power Cooperative in August, the largest individual sale secured by Invinity to date.

In addition to the above, in May Invinity was selected by FlexBase to design what is expected to be the world's largest vanadium flow battery system for the Laufenburg Technology Centre in Switzerland, which plans to feature an AI data centre and technology campus integrated with a 1.5 GWh Invinity Vanadium Flow Battery (expected to expand to 2.1 GWh during a subsequent phase of the project's development). Furthermore, in June, Frontier Power's Legacy project was selected to progress under Window 1 of the UK LDES Cap and Floor Scheme, which is currently expected to incorporate up to 260 MWh of Invinity's VFB technology and which would represent the Company's largest UK project to date. These milestones represent a commercial inflection point for Invinity's business demonstrated by the substantial increase in both the volume and scale of opportunities, speaking to ever-growing customer confidence in the Company's technology, team and ability to deliver.

Importantly, this commercial momentum is increasingly being driven by improvements in product competitiveness resulting from the Company's ongoing cost reduction programme. Reducing product cost has been one of management's highest priorities over the past two years and the programme is now delivering tangible commercial and financial benefits ahead of management's original expectations. This strategy of aggressively reducing product cost while maintaining the highest standards of technical performance has significantly improved the competitiveness of our commercial proposals and is now contributing directly to stronger financial performance. To this end, Gross Loss reduced by more than 60% during the Period, reflecting materially lower product costs, reduced warranty expenses and improved product margins. The cost reduction programme remains a key corporate workstream and is on track to achieve a minimum 66% cost reduction for product delivered in 2027 vs. previous generations.

Invinity's growing operational track record is another factor underpinning commercial success. In May, the Company completed delivery of the 20.7 MWh Copwood VFB Energy Hub in East Sussex, a landmark project expected to become Europe's largest vanadium flow battery once operational. Furthermore, in August, Invinity's installed fleet surpassed 10 GWh of energy dispatched in service to customers and subsequently passed the 11 GWh milestone in September. This growing body of operating data from projects across multiple geographies and applications, reinforces one of Invinity's key competitive advantages: flexible, proven technology capable of delivering safe, durable, high-throughput energy storage over 30+ year operating lifetimes.

Recognition of these strengths is increasingly reflected in our engagement with government, industry and strategic stakeholders. In the year to date, the Company welcomed numerous visits from government representatives and industry leaders to its facilities and project sites across the world and the Company is increasingly becoming recognised as a technology leader not only in the UK and Canada, but also in the United States, where Invinity's planned domestic manufacturing capability will strengthen the Company's ability to serve a rapidly growing customer base in one of the world's most important energy storage markets.

Revenue and Project Grant Income recognised during the Period remained modest at £1.7 million and reflects the timing of project deliveries and the Company's long-established pattern of second-half weighted revenue recognition. Importantly, the quality of corporate revenue outlook continues to improve. Increasingly, future revenue is supported by contracted business rather than anticipated pipeline conversion, another important indicator of the Company's continued progression towards scale. Signed customer contracts now provide coverage over the substantial majority of expected FY 2026 revenue and more than half of FY 2027 revenue expectations, with further framework agreements and development-stage opportunities substantially covering the remainder of 2027 and extending into 2028 and beyond. The Company currently has over 77 MWh of contracted orders to deliver across FY 2026-2028 within a total commercial pipeline exceeding 12.5 GWh, which is concentrated in growth markets, particularly the rapidly expanding datacentre sector across North America and Europe.

These opportunities position Invinity strongly to continue gaining market share over the coming years and accordingly, the Company has continued to invest in the capabilities required to deliver at scale. Alongside progress towards U.S. manufacturing and the expansion of our supply chain and project delivery functions, the Company strengthened its Board through the appointment of Volker Beckers CBE as a Non-Executive Director. His extensive experience leading major international energy businesses adds further depth to Invinity's Board as the Company executes against an increasingly significant global growth opportunity.

The progress achieved in the Period and the year to date provides growing evidence that the Company's strategy is delivering. Product costs continue to fall, customer demand is increasing, revenue visibility is improving and Invinity's market position continues to strengthen. While significant opportunities and challenges remain ahead, the business is entering a new phase characterised by commercial scale-up and execution against a substantial global market opportunity.

Financial Performance

1 Project Grant Income includes government grant income recognised in relation to eligible project activities as Other items of operating income and expense or grant income against capital assets. For the 2026 reporting period, £0.6m of grant income was received and recorded as a credit to capital assets.

2 Product margin represents revenue less direct product costs, excluding overhead, warranty costs, and movements in non-cash provisions for sales contracts.

1 Other Adjusting Items, net, includes gain and loss on disposal of non-current assets and legal settlements, and redomiciliation costs.

Revenue and Project Grant Income for the six months ended 30 June 2026 increased to £1.7 million (H1 2025 £0.9 million), driven by increased customer project delivery activity. Revenue includes the delivery of one battery system and the commissioning of four projects, in addition to integration hardware and shipping, while the Project Grant Income of £0.6 million concludes the completion of the Copwood VFB Energy Hub ("Copwood"). Revenue recognition for the full year remains significantly weighted towards the second half, reflecting the timing of contracted project milestones and anticipated deliveries.

Product margins reflecting direct costs improved to 1.8% reflecting completion of the first commercial Endurium delivery. Gross Loss reduced to £0.7 million (H1 2025 £1.9 million) reflecting increased manufacturing activity principally for Copwood with greater absorption of facility overhead, together with a substantial reduction in warranty costs to £0.2 million from £0.9 million in the comparative period. The reduction in warranty costs reflects improved component performance and lower component costs.

The increase in administrative expenses to £11.3 million (H1 2025 £9.6 million) included a £0.8 million increase in staff costs reflecting R&D investment to deliver product cost reduction, and a £0.6 million net reduction in R&D grant income year-on-year given the completion of the Gamesa Electric Joint Development Agreement.

During H1 2026, £0.6 million of DESNZ funding relating to Copwood was received and recognised against qualifying capital expenditure. In addition, £1.8 million of grant funding deferred at 31 December 2025 was applied against the carrying amount of the related project asset as the associated manufacturing and delivery milestones were completed. This treatment is consistent with the Group's accounting policy for grants related to capital assets.

Property, plant and equipment plus intangible assets increased to £37.1 million, from £34.3 million at 31 December 2025. The increase primarily reflects continued investment in the Copwood VFB Energy Hub, partially offset by the application of related DESNZ grant funding, together with the capitalisation of qualifying product development expenditure.

Total inventory and prepaid inventory increased to £14.2 million, from £4.0 million at 31 December 2025, as the Company manufactured product to support customer deliveries in H2 2026.

Net cash at 30 June 2026 was £10.5 million, compared with £28.8 million at 31 December 2025. The reduction principally reflects £12.9 million of net cash used in operating activities and £5.0 million of net investment in the Copwood project, product development and wider operational capability. Cash inflows are expected during H2 2026 from the conversion of project-related working capital and the receipt of advance and milestone payments under signed customer contracts. The Group continues to manage its operating costs and discretionary expenditure closely while prioritising the delivery of contracted customer projects and its strategic product development programme.

Net assets at 30 June 2026 were £54.8 million, compared with £66.4 million at 31 December 2025, principally reflecting the use of the Group's resources to fund operations and the resulting loss incurred during the Period.

Jonathan Marren

Chief Executive Officer

21 September 2026

Unaudited Financial Results for the Period Ended 30 June 2026

Unaudited Consolidated Statement of Profit and Loss

For the six months ended 30 June 2026

The above unaudited consolidated statement of profit and loss should be read in conjunction with the accompanying notes.

Unaudited Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2026

The above unaudited consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Unaudited Consolidated Statement of Financial Position

As at 30 June 2026

See note 26 for details of the restatement.

The above unaudited consolidated statement of financial position should be read in conjunction with the accompanying notes.

Unaudited Consolidated Statement of Changes in Equity

As at 30 June 2026

As at 30 June 2025 (Restated)

See note 26 for details of the restatement.

The above unaudited consolidated statements of changes in equity should be read in conjunction with the accompanying note.

Unaudited Consolidated Statement of Changes in Equity

For the year ended 31 December 2025

The above unaudited consolidated statements of changes in equity should be read in conjunction with the accompanying note.

Unaudited Consolidated Statement of Cash Flows

For the six months ended 30 June 2026

The above unaudited consolidated statement of cash flows should be read in conjunction with the accompanying note. Certain comparative information has been re-presented to ensure consistency with the presentation adopted in the current period.

Notes

(forming part of the unaudited consolidated historical financial information)

1 General Information

Invinity Energy Systems plc (the "Company") is a public company limited by shares incorporated and domiciled in the UK. The registered office address is Room 3.03, 24 Chiswell Street, London, EC1Y 4TY.

The Company is quoted on the AIM Market of the London Stock Exchange with the ticker symbol IES.L.

The principal activities of the Company and its subsidiaries (together the "Group") relate to the manufacture and sale of vanadium flow battery systems and associated installation, warranty and other services.

2 Accounting Policies

The accounting policies applied in this condensed consolidated financial information are consistent with those applied in preparing the financial statements for the year ended 31 December 2025.

Basis of Preparation

This unaudited condensed consolidated interim financial information for the six months ended 30 June 2026 (the 'interim financial information') has been prepared in accordance with IAS 34, 'Interim financial reporting' as adopted for use in the United Kingdom. The financial information should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2025 that were prepared in accordance with International Financial Reporting Standards as adopted for use in the United Kingdom.

The annual report and financial statements for the year ended 31 December 2025 are available on the Company's website (www.invinity.com).

This interim financial information has been prepared using the historical cost basis of accounting. The accounting policies applied across all the Group's subsidiaries when preparing the financial information are consistent with those adopted and disclosed in the annual financial statements for the year ended 31 December 2025. The accounting policies have been consistently applied across all Group entities for the purpose of producing this interim financial information.

The financial information included in this document does not constitute the Company's statutory accounts within the meaning of section 434 of the Companies Act 2006. The comparative figures for the financial year ended 31 December 2025 represent the Company's statutory accounts for that year, which were prepared under the Companies Act 2006, reported on by the Company's auditors, and delivered to the Registrar of Companies in England and Wales.

The Group's business activities, together with factors likely to affect its future development, performance and position, are set out in the operations and financial review sections of this report.

The financial position of the Group, its cash flows and liquidity position are described in the financial review section.

Going Concern

The Directors have made an assessment of going concern covering the period from the date of the financial statements to 30 June 2027 and in making this statement, have prepared a cash flow forecast covering this period.

The forecast indicates that the Group can remain cash positive during the going concern period, without the requirement for further fundraising. This forecast includes judgements and estimates regarding income from pipeline projects, expected costs of delivering the contracts, and is predicated on cost mitigation measures including the deferral of capital expenditure and reduction in opex.

In order to fund the business beyond the going concern period and for future expansion, the Directors anticipate that additional funding would be required. The Directors have considered the availability of potential funding sources and the Group's track record in accessing capital markets in forming this assessment.

Invinity has prepared a downside cash forecast for the purposes of the going concern evaluation, which excludes all pipeline contracts that are not yet signed. In this scenario, the forecast assumes a reduction or deferral of costs in order to preserve cash without additional funding. If required, the Directors consider that the Group has the ability to reduce or defer costs without adversely affecting the short-term delivery of contracted income in downside forecast. The outcome of this scenario is that the Company has sufficient cash through the going concern period. 

On the basis of this assessment, the Directors are satisfied that the Group has sufficient resources to continue in operation for the going concern period. Accordingly, the financial statements have been prepared on a going concern basis.

3 Critical Accounting Judgements and Key Sources of Estimation Uncertainty

The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and of items of income and expense. Actual results may differ from these estimates.

In preparing this interim financial information, the significant judgements made by management in applying the Group's accounting policies were the same as those that applied to the consolidated financial statements for the year ended 31 December 2025. Similarly, the key sources of estimation uncertainty related to the financial information were the same as those encountered when applying the Group's accounting policies in relation to the preparation of the consolidated financial statements for the year ended 31 December 2025.

In preparing the condensed consolidated financial information, management is required to consider the principal risks and uncertainties facing the Group. In management's opinion the principal risks and uncertainties facing the Group are unchanged since the preparation of the consolidated financial statements for the year ended 31 December 2025. Those risks and uncertainties, together with management's response to them are described in the risk review section of the annual report and financial statements for the year ended 31 December 2025.

4 Revenue from Contracts with Customers and Income from Government Grants

Segment Information

The Group derives revenue from a single business segment, being the manufacture and sale of vanadium flow battery systems and related hardware together with the provision of services directly related to battery systems sold to customers.

The Group is organised internally to report on its financial and operational performance to its chief operating decision maker, which has been identified as the Executive Directors as a group.

All revenues were derived from continuing operations.

Revenue from Contracts with Customers

Grant Income other than Revenue

The Group receives grant income to help fund certain projects that are eligible for support, typically in the form of innovation grants. The total grant income in the period was as follows:

5 Cost of Sales

6 Administrative Expenses

7 Staff Costs

8 Other Items of Operating Income and Expense

9 Loss per Share

The weighted average number of shares used to calculate basic and diluted loss per share as presented in the consolidated statement of comprehensive loss was as follows:

Additional potential shares used in the calculation of diluted earnings per share primarily relate to potential shares outstanding at 30 June 2026 that may be issued in satisfaction of 'in-the-money' employee share options. Potentially dilutive shares related to 'in-the-money' outstanding warrants to subscribe for ordinary shares in the Company are also included in calculating diluted earnings per share.

Where additional potential shares have an anti-dilutive impact on the calculation of loss per share calculation, such potential shares are excluded from the weighted average number of shares used in the calculation.

Additional potential shares are anti-dilutive where their inclusion in the calculation of loss per share results in a lower loss per share.

10 Cash Flows from Operating Activities

11 Subsidiary Incorporations

During the period, the Group incorporated two wholly owned subsidiaries as part of its international expansion strategy. Invinity India Limited was incorporated on 23 March 2026 to support participation in energy storage opportunities in India, while Invinity New Energy (Xiamen) Co., Ltd. was incorporated on 29 April 2026 as a wholly owned subsidiary of Invinity Asia Limited to support the Group's planned activities in China. As both entities were newly incorporated and had limited operations during the period, their incorporation did not have a material impact on the Group's consolidated financial statements.

12 Taxation

No income tax expense has been recognised for the six months ended 30 June 2026 (2025: £nil), and no deferred tax asset has been recognised.

13 Goodwill and Intangible Assets

Goodwill

All goodwill is tested annually for impairment. At 31 December 2025, goodwill was tested for impairment using the fair value less cost of disposal method. The closing share price on 30 June 2026 was 28.60 pence giving a market capitalisation of £162.7 million which is more than £107.9 million higher than the Net Assets value of the Company on this date. The share price would need to have dropped below 9.64 pence for the market value to be below the Net Asset value of the Company at that date. Based on the above, no impairment loss was identified in relation to goodwill.

Patents and Certifications

There have been no events or circumstances that would indicate that the carrying value of patents and certifications may be impaired at 30 June 2026.

14 Property, Plant and Equipment

The Group has no assets pledged as security. No amounts of interest have been capitalised within property, plant and equipment at 30 June 2026 (2025: £nil).

15 Other Non-Current Assets

The Group entered into a sublease agreement in respect of a property in the United States that is held under an existing lease arrangement. The sublease commenced during the prior year and covers the remaining lease term, ending on 31 July 2029.

16 Inventory

17 Other Current Assets