Nel ASA Faces a Defining Moment in Its Strategic Shift

Nel ASA NO0010081235

The Norwegian hydrogen technology company, Nel ASA, is entering a critical period. As the market anticipates its quarterly results due in late February, the firm is pushing forward with a fundamental strategic pivot. The central question is whether its new technology platform can drive a turnaround or if challenging industry conditions will continue to exert pressure.

At the heart of Nel's new direction is a December 2025 decision to industrialize its next-generation pressurized alkaline electrolyzers. Following a seven-year development program, manufacturing is set to commence at the Herøya facility. This move represents a crucial transition from the prototype phase to commercial-scale production, with the launch scheduled for the first half of 2026.

The project has secured substantial backing from the EU Innovation Fund, which granted funding of up to €135 million. Nel's initial investment is approximately 300 million NOK to establish a production capacity of one gigawatt. The site's design, however, has a future perspective, allowing for potential expansion to as much as four gigawatts.

Recent Performance Highlights Challenges

The need for a new strategic impetus is underscored by the company's performance in the third quarter of 2025. Revenue from customer contracts fell 17% year-over-year to 303 million NOK. A particularly sharp decline was seen in new project commitments, where order intake collapsed by 64% to just 57 million NOK.

Amid these challenges, a positive note was an improvement in operational profitability. The company's EBITDA improved to minus 37 million NOK, compared to minus 90 million NOK in the prior-year period. Furthermore, Nel's balance sheet showed liquidity of about 1.76 billion NOK as of September 30, 2025, providing a degree of financial flexibility for upcoming investments.

Despite persistent sector-wide headwinds characterized by high production costs and slow infrastructure development, Nel managed to secure significant contracts toward the end of 2025. These included an order for PEM electrolyzers valued at over $50 million.

The Upcoming Verdict

All eyes are now on February 26, 2026, when Nel ASA will release its fourth-quarter and full-year report. This disclosure will reveal the financial impact of recent contract wins and offer initial indications of whether the strategic realignment is beginning to yield results. For investors, the report will serve as a key test of the company's resilience and the viability of its new technological pathway.