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IES: Grid Storage Projects And Testing Will Support Long-Term Upside Potential

Vanadium Flow Batteries Will Accelerate Global Grid Decarbonization

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IES
AnalystHighTarget
Not Invested
Published 30 Aug 2025

Update shared on 14 Dec 2025

Fair value Decreased 21%
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Analysts have lowered their price target on Invinity Energy Systems from £1.05 to £0.83 per share, citing higher perceived risk, moderating long term profit margin expectations, and a still elevated but somewhat less demanding future earnings multiple, even as they factor in stronger projected revenue growth.

What's in the News

  • The U.S. Department of Energy's Pacific Northwest National Laboratory has begun year-long real-world testing of an Invinity vanadium flow battery at its new Grid Storage Launchpad to assess how grid-scale batteries can support the U.S. grid (Key Developments).
  • Construction has commenced at Invinity's LoDES project site in Uckfield, East Sussex, backed by a £10 million DESNZ grant to deliver 20.7 MWh of vanadium flow batteries co-located with a 3 MWp solar array. The project is targeting operation in the second half of 2026 as Europe's largest operating vanadium flow battery (Key Developments).
  • Invinity plans to own and operate the entire LoDES site in order to enhance financial returns, maximise monetisation options, and use the project as a showcase for its technology while gaining experience to cut deployment costs and inform product development (Key Developments).
  • The company has completed a £25 million follow-on equity offering via a subsequent direct listing, issuing 128,205,128 new ordinary shares at £0.195 per share to strengthen its capital base (Key Developments).

Valuation Changes

  • Fair Value: reduced from £1.05 to £0.83 per share, representing a significant downgrade in the intrinsic value estimate.
  • Discount Rate: increased slightly from 8.86 percent to 9.44 percent, reflecting a modestly higher perceived risk profile.
  • Revenue Growth: raised materially from approximately 199 percent to 314 percent, indicating meaningfully stronger top line expectations.
  • Net Profit Margin: lowered notably from about 1.47 percent to 0.81 percent, implying more conservative long term profitability assumptions.
  • Future P/E: decreased from roughly 302 times to 229 times, suggesting a less demanding but still elevated valuation multiple on projected earnings.

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