Nel ASA Pins Turnaround Hopes on Next-Gen Electrolyser as Losses Mount and CEO Prepares Exit

Nel ASA launches PA-Series alkaline electrolysers targeting 60% cost reduction, but Q2 losses widen on legal charge and operational deficit; orders surge 224% as CEO resigns.

The Norwegian hydrogen equipment manufacturer has unveiled a new generation of alkaline electrolysers designed to slash project costs by as much as 60%, even as its quarterly results are dragged down by a one-off legal charge and a deepening operational deficit. The PA-Series, launched on 6 May, targets total installed costs below $1,450 per kilowatt for a 25-megawatt plant, while cutting floor-space requirements by up to 80%. First prototype tests have been encouraging, according to the company.

The product rollout comes at a pivotal moment. Nel reported second-quarter revenue from customer contracts of 153 million Norwegian kroner, a 12% decline from a year earlier, while total revenue including other income reached 182 million kroner. Operating losses before interest, taxes, depreciation and amortisation widened to minus 155 million kroner, compared with a loss of 86 million kroner in the same period last year. The bottom line swung to a net loss of 189 million kroner, up from 131 million kroner.

Roughly 70 million kroner of the EBITDA deterioration is attributable to a settlement with Japan’s Iwatani Corporation, which ended a long-running legal dispute. Excluding that charge, the underlying operating loss still increased, reflecting the ongoing challenge of scaling up production while margins remain under pressure.

Despite the red ink on the income statement, order intake exploded. Nel booked 230 million kroner in new orders during the quarter, a 224% surge year-on-year and a 171% jump sequentially. The overwhelming majority — 96% — came from its proton-exchange membrane (PEM) electrolyser division, which boosted its order backlog by 147 million kroner to 990 million kroner. The group’s total order backlog rose 9% quarter-on-quarter to 1.213 billion kroner. Cash and cash equivalents stood at 1.328 billion kroner, providing a cushion as the company burns through capital.

Amid these mixed signals, CEO Håkon Volldal announced his resignation. He will remain in the role until the end of 2026 to oversee the transition, but a successor has yet to be named. Volldal pointed to the two large PEM orders won during the quarter and the successful launch of the new alkaline platform as evidence of growing commercial momentum. The company intends to rely on its existing liquidity, ongoing cost reductions and capacity adjustments to fund operations and technology development until the broader hydrogen market recovers.

The stock has not benefited from the order surge. Shares closed the most recent session at €0.1926 in Oslo trading, nearly 47% below their 52-week high of €0.3655. The 14-day relative strength index at 30.1 signals an oversold condition, and the stock is trading well below both its 50-day moving average of €0.2548 and its 200-day average of €0.2153. The market appears to be pricing in the risk that Nel will struggle to convert its swelling backlog into profitable revenue, especially with a leadership vacuum looming.

Analysts are watching two key inflection points. The first is whether the company can reduce its EBITDA loss — even temporarily — in the third quarter by proving that the bulk of the recent deterioration was due to the Iwatani settlement. The second is the speed and quality of the CEO search; a swift appointment of an executive with industrial-scale experience could restore some confidence. Should the losses persist and the stock fail to find a floor, Nel’s 52-week low of €0.1731 could come into play. The company has described the second half of 2026 as a transition period, and the next few months will test whether its technological promise can translate into financial reality.