Nel ASA Stock Consolidates After 70% Rally as Investors Weigh Weak Orders Against New Platform Promise

Nel ASA falls 10% as investors cash in after stock doubled; Q1 shows revenue dip but strong cash reserves and new electrolyser technology offer potential. Q2 report on July 15 is next catalyst.

Nel ASA’s shares took a sharp breather on Monday, shedding nearly 10% to close at 3.48 Norwegian kroner on the Oslo exchange, after the stock had more than doubled from its March lows. The pullback from a 52-week high of 0.36 euros reached on May 25 — equivalent to about 3.80 NOK — reflects a classic case of profit-taking after a blistering run, but beneath the surface lies a more fundamental question: can the company’s technological ambitions outrun its still-fragile order book?

The first-quarter numbers released in late April offer a mixed picture. Revenue from customer contracts came in at 148 million Norwegian kroner, a 5% decline from the 155 million kroner reported a year earlier. Nel’s net loss improved to 144 million kroner from 161 million kroner, and the loss per share narrowed to 0.08 NOK from 0.10 NOK. The EBITDA loss also reduced, landing at negative 100 million kroner versus negative 115 million kroner in the prior-year period. Yet the metric that may matter most for the stock’s near-term trajectory is the order backlog, which stood at 1.113 billion kroner at the end of the quarter — a 24% drop from the same point in 2025.

The company’s trump card remains its cash position. Nel ended March with roughly 1.443 billion kroner in liquid assets, providing ample runway to commercialise its latest technology without immediate financing pressure. That cushion was a key reason investors pushed the stock from a 52-week low of 0.18 euros in March to a peak of 0.36 euros late last month. But since that high, the shares have drifted back to around 0.33 euros on German trading venues like Tradegate, where they edged 0.75% lower on Tuesday.

The catalyst for the initial rally — and the focus of current hopes — is Nel’s new generation of pressurised alkaline electrolysers, unveiled on May 6. The system, developed over eight years, targets large-scale green hydrogen projects and aims to slash upfront capital costs. For a 25 MW installation, Nel is targeting turnkey costs of under $1,450 per kilowatt, a figure designed to address one of the industry’s most stubborn barriers: high initial expenditure. The industrialisation of the platform at the Herøya facility is backed by a grant from the EU Innovation Fund that can reach up to 135 million euros, covering as much as 60% of eligible costs.

Technically, the pullback has reset some overbought conditions. The relative strength index now sits near 49, squarely in neutral territory, and the stock remains more than 57% above its 200-day moving average of 0.21 euros — a sign that the broader uptrend since April remains intact even after Monday’s correction. Still, the lack of fresh operational news since the electrolyser launch leaves the shares vulnerable to further consolidation until the next catalyst arrives.

That catalyst is likely to be the second-quarter report, scheduled for July 15. Investors will be watching closely for signs that the new platform is translating into tangible order intake. With the order backlog already shrinking and new orders during Q1 reaching just 85 million kroner, the market needs evidence that Nel can convert its technological edge into commercial momentum. Without it, even a healthy cash pile can only buy so much time.