Nel ASA Reports Soaring Annual Loss Amid Record Order Intake

Nel's Q4 2025 results show a NOK 870M net loss due to major write-downs, but order intake surged 364% to NOK 686M, signaling strong future demand.

Norwegian hydrogen technology firm Nel ASA released its fourth quarter and full-year 2025 financial results on February 26, revealing a substantial net loss of NOK 870 million. This result was primarily driven by significant asset write-downs totaling NOK 799 million. Despite the financial setback, the electrolyzer manufacturer announced its second-highest quarterly order intake on record.

Revenue Declines While Order Book Surges

Customer contract revenue for Q4 2025 fell to NOK 330 million, marking a 20% decrease from the NOK 416 million reported in the same period the previous year. Total revenue, which includes other income, also declined from NOK 450 million to NOK 361 million.

A contrasting bright spot was the company's order intake, which skyrocketed by 364% to NOK 686 million for the quarter, up from NOK 148 million a year earlier. Chief Executive Håkon Volldal highlighted this as the company's second-best quarterly order performance in its history. The order backlog stood at NOK 1,319 million at the quarter's close, representing a 34% increase from Q3 but an 18% decrease from the end of 2024.

Profitability and Cash Position

Earnings before interest, taxes, depreciation, and amortization (EBITDA) remained negative at NOK -36 million, consistent with the prior-year quarter. However, the EBITDA margin deteriorated to -10.9% from -8.7%. The operating result plummeted to NOK -920 million, a stark decline from NOK -106 million in the previous year. The pre-tax result was NOK -898 million, compared to NOK -65 million in Q4 2024.

Nel's liquidity position remained robust, with cash and cash equivalents of NOK 1,617 million at the end of the quarter, down from NOK 1,876 million a year ago. Operational cash flow was negative at NOK -10 million, versus a positive NOK 25 million in the prior-year period. CEO Volldal attributed the solid liquidity to the company's cost discipline, noting reductions in production capacity and operating expenses implemented early in 2025.

Segment Performance and Major Contracts

Performance varied across the company's core divisions. The Alkaline segment suffered a 33% drop in revenue but improved its EBITDA to NOK 36 million. The Proton Exchange Membrane (PEM) business maintained revenue near the previous year's level, yet its EBITDA worsened to NOK -35 million from NOK -22 million.

The substantial NOK 799 million in write-downs was allocated between the segments, with NOK 439 million attributed to PEM and NOK 361 million to Alkaline assets.

Notable new orders included a landmark 40 MW PEM contract from HYDS valued at over USD 50 million, described as the largest PEM order ever received by Nel. The company also secured a third order from Switzerland's H2 Energy for a containerized MC500 PEM unit. The PEM segment's order backlog alone reached NOK 878 million.

Strategic Developments and Future Outlook

Nel has made a final investment decision to industrialize its new pressurized alkaline electrolyzer platform, supported by EU grant funding from the Innovation Fund. Prototype testing has indicated potential for both lower capital expenditure and higher energy efficiency. The commercial launch is scheduled for the first half of 2026, with larger-scale deliveries expected to follow in 2027.

This follows the commencement of construction in December 2025 on a new alkaline production facility at Herøya, Norway, designed for a capacity of up to 1 GW.

The company is scheduled to publish its next quarterly figures on April 22, 2026. Market observers will be watching closely to see if the strong recent order intake successfully translates into improved revenue and whether the new alkaline platform delivers on its commercial potential.