Nel ASA: Legal Settlement and US Tariffs Compound a Leadership Crisis

Nel ASA shares near 52-week low as legal settlement, CEO departure, and new US tariffs on electrolysers weigh on hydrogen specialist's outlook.

Nel ASA’s stock continues to drift lower as the Norwegian hydrogen specialist grapples with a trio of headwinds that have left investors searching for clarity. Shares closed at €0.1946 on Tuesday, down 2.01%, bringing the stock nearly 20% below its 50-day moving average of €0.2422 and within striking distance of the 52-week low of €0.1731 set on February 26. The gap from the May high now stands at 46.76%.

The most immediate financial blow came from a legal dispute that has now been settled. Nel reached an agreement with Iwatani Corporation of America in June 2026, ending litigation over hydrogen refueling stations and related services. While the legal chapter is closed, the financial impact is very much open: the settlement hit second-quarter EBITDA with roughly 70 million Norwegian kroner in one-time costs. That pushed the operating loss to minus 155 million kroner, compared with a loss of 100 million kroner in the first quarter.

Revenue did manage a modest uptick, rising from 152 million to 182 million kroner year-on-year, but the bottom line tells a different story. The net loss per share widened to minus 0.10 kroner from minus 0.07 kroner in the same period last year. The board has reiterated that a dividend from ongoing operations remains off the table, and analysts are projecting a full-year loss of around 0.315 kroner per share for 2026.

A Leadership Vacuum at a Critical Juncture

Compounding the financial strain is uncertainty at the top. CEO Håkon Volldal announced his departure on June 15, 2026, to join packaging group Elopak. He remains in a six-month notice period, but the board has yet to name a successor. That leadership gap comes at a particularly awkward moment, with Nel trying to scale up industrial production of its new pressurized alkaline platform, which launched in May.

Market observers view the timing of the CEO exit as especially unfortunate. The company is navigating both legacy legal issues and a shifting trade landscape, all while trying to execute a strategic pivot toward mass manufacturing. Investors are growing restless with the silence from management, and many expect no clarity until the third-quarter results are released on October 21.

US Tariffs Threaten a Promising Order Book

Just as Nel was showing signs of operational momentum, Washington stepped in with a fresh obstacle. On July 24, the US imposed new import tariffs of between 10% and 12.5% on electrolysers, directly targeting one of Nel’s most important growth markets. The PEM (proton-exchange membrane) segment, which had been performing well, now faces cost pressures that could erode recent gains.

The tariff news is particularly frustrating given the order book’s recent trajectory. Second-quarter order intake in the PEM segment surged 224% to 230 million Norwegian kroner. That kind of growth would normally be cause for celebration, but the new trade barriers threaten to partially offset the progress by raising costs across the global supply chain.

Cash Cushion Offers Some Breathing Room

Despite the operational headwinds, Nel’s balance sheet provides a measure of comfort. The company ended June with a cash reserve of approximately 1.328 billion Norwegian kroner, a buffer intended to fund the industrialization of the new pressurized alkaline platform. That liquidity cushion means Nel can absorb the Iwatani settlement and weather the tariff uncertainty without an immediate capital raise.

Technically, the stock remains in fragile territory. The relative strength index sits at 36.2, approaching oversold conditions but without a clear capitulation signal. With annualized 30-day volatility of 28.86%, the shares are highly sensitive to any news flow around the CEO search or North American trade policy. Until either a new chief executive is appointed or the tariff situation becomes clearer, the stock is likely to remain under pressure.

The next major milestone comes on October 21, when Nel reports third-quarter results. That report will reveal whether the Iwatani settlement was truly a one-off or whether deeper structural issues are at play. For now, investors are left watching a stock that is closer to its 52-week floor than its May peak, waiting for a catalyst that could break the current trajectory.