Order Boom Meets Leadership Vacuum: Nel ASA’s Mixed Q2 Raises Questions on Path to Profitability

Norwegian electrolyser maker posts 224% order surge but shares plunge 47% as CEO departure and profitability concerns weigh on investor sentiment.

Nel ASA is living through a rare disconnect between operational momentum and market sentiment. The Norwegian electrolyser maker posted a 224% year-over-year surge in order intake during the second quarter, yet its shares have been sliding steadily—down 47% from a May high and trading just 11% above their 52-week low. At Friday’s close of €0.1922, the stock had lost 1.94% on the day, 6.24% over the week, and 15.33% over the past month.

The tension lies in the numbers published on July 15. Revenue from customer contracts fell 12% year-on-year to 153 million Norwegian kroner, though total revenue of 182 million kroner improved sequentially. The EBITDA shortfall widened to minus 155 million kroner, burdened by a 70 million kroner settlement payment to partner Iwatani. That left a net loss of 189 million kroner for the quarter. Profitability remains distant, even as the order book tells a far more encouraging story.

Order intake exploded to 230 million kroner in the second quarter, an increase of 171% from the first quarter and 224% from a year earlier. The PEM segment drove much of the gain, pushing the PEM order backlog to 990 million kroner and lifting the total backlog to 1.213 billion kroner. Two containerised PEM orders worth roughly $7 million each underscored the commercial traction. CEO Håkon Volldal described the momentum as encouraging, pointing to the launch of the new PA-Series platform.

That platform—a pressurised alkaline electrolyser system that reached commercial readiness in May—is the centrepiece of Nel’s technological push. The company says it simplifies hydrogen production and cuts capital costs by 40% to 60%. For a 25-megawatt installation, Nel is quoting a turnkey price of less than $1,450 per kilowatt, well below comparable industrial projects. The European Union is backing the industrialisation with a grant of up to €135 million from the Innovation Fund.

Yet this technological advance has been overshadowed by events in the boardroom. In mid-June, Volldal announced he would leave the company, with a six-month transition period. The search for a successor is under way, but the timing could hardly be less convenient for a sector already wrestling with the slow pace of hydrogen adoption. Leadership uncertainty has added a layer of risk that the market is pricing harshly.

Analyst sentiment reflects the broader caution. The average price target stands at 2.12 Norwegian kroner, but that comes with zero buy ratings and seven sell recommendations. The stock’s technical picture is equally downbeat: the relative strength index sits at 30, a level that traditionally signals oversold conditions, but has not yet triggered a reversal. From its 52-week high of €0.3655 on May 25, the share price has halved. The market capitalisation has shrunk to €368.76 million.

For Nel, the central question is whether a growing order backlog can eventually translate into profitable revenue, especially while the top job remains unfilled. The company’s next quarterly results will need to show that orders are converting into cash—and that the CEO succession does not stall the commercial momentum that has finally started to build.