Nel ASA: EU Grant Lands as Hydrogen Orders Surge, But the Balance Sheet Tells a Tougher Story
Published on 08/07/2026 at 11:03 | Redaktion boerse-global.de
The Norwegian hydrogen equipment maker Nel ASA finds itself in an unusual position this summer: its order intake is exploding, Brussels is handing over a nine-figure grant, and yet the share price sits within striking distance of its 52-week low. The disconnect between the company's long-term prospects and its near-term financial reality has rarely been starker.
A Quarter of Contradictions
Nel's second-quarter results, published on July 15, laid bare the tension. Revenue from customer contracts fell 12 percent year-on-year to 153 million Norwegian kroner, while total revenue dropped 15 percent to 182 million kroner. The bottom line showed a net loss of 189 million kroner.
The operating picture was equally strained. EBITDA came in at minus 155 million kroner, with a substantial chunk of that damage — 70 million kroner — stemming from a settlement with Iwatani Corporation of America, a legal matter the company disclosed on June 7. Cash reserves eroded 31 percent over twelve months to 1.328 billion kroner, though that war chest still buys Nel time to navigate the current trough.
Segment performance offered a mixed read. The PEM electrolyzer division saw revenue slip 10 percent year-on-year, but bounced 31 percent sequentially and delivered one of the few positive numbers on the income statement with EBITDA of 3 million kroner. The alkaline electrolyzer unit fared worse, with revenue down 14 percent, though its EBITDA held roughly flat against the prior-year period.
Should investors sell immediately? Or is it worth buying Nel ASA?
The Order Book Tells a Different Story
Where the income statement disappoints, the pipeline compensates. Order intake jumped 224 percent to 230 million kroner, with PEM technology accounting for 96 percent of new bookings. The total order backlog reached 1.213 billion kroner — down 3 percent from a year earlier but up 9 percent sequentially, suggesting demand is stabilizing even as revenue recognition lags.
That momentum extends beyond the quarter. In April, Nel secured two contracts worth $7 million each for containerized PEM electrolyzers — one from the Douglas County Public Utility District in Washington state, the other from an undisclosed customer.
Brussels Backing for the PA-Series Bet
The strategic centerpiece remains the PA-Series, a pressurized alkaline electrolyzer platform launched commercially in May. Nel claims the new generation cuts capital costs by 40 to 60 percent versus existing market solutions and requires up to 80 percent less floor space than older atmospheric systems. For a 25-megawatt installation, the company is targeting a turnkey price below $1,450 per kilowatt.
The European Union's Innovation Fund has pledged 135 million euros to support PA-Series manufacturing at Nel's Herøya facility, covering up to 60 percent of eligible investment and operating costs, tied to milestone achievements. The latest investment decision already unlocks an initial disbursement exceeding 10 million euros. Nel laid the groundwork in late 2025 with a final investment decision on gigawatt-scale production and a full-scale prototype that confirmed the targeted system efficiency.
Management expects first orders for the new platform in the coming months. Production capacity of 500 megawatts is slated for end-2026, expanding to 1 gigawatt in 2027.
Leadership Uncertainty Compounds Market Jitters
The shares have had a volatile week. Thursday saw a 9.02 percent intraday gain evaporate into a 6.03 percent decline, pushing the stock back below its 38-day moving average. On Friday, the stock traded around 0.1972 to 0.1980 euros, up roughly 0.5 to 0.9 percent depending on the session, but remains 45.83 percent below its late-May 52-week high and just 13.92 percent above the February low of 0.1731 euros. The 200-day average sits 7.98 percent above the current price, underscoring a persistent medium-term downtrend. The RSI at 41.5 points to neutral territory — no oversold bounce, no overbought froth.
An automated analysis service upgraded its rating from "Sell" to "Hold/Accumulate" on Wednesday, though the move was purely technical and offers limited directional insight given the recent swings.
Nel ASA at a turning point? This analysis reveals what investors need to know now.
Adding to the overhang is the leadership transition. CEO Håkon Volldal announced his resignation on June 15 to join packaging firm Elopak, remaining in place through a six-month notice period while the board searches for his successor. Until that search concludes, investors must navigate an extended period of uncertainty at the top.
There is at least one insider signal worth noting: board chairman Arvid Moss purchased 100,000 shares on April 24 at an average price of 2.2547 Norwegian kroner, increasing his stake.
What to Watch Next
The market's attention now turns to the third-quarter report, due October 21. The key questions: whether the PA-Series converts its pipeline into meaningful orders, whether the revenue decline stabilizes, and whether the EU grant begins flowing through the income statement. Nel's cash position gives it breathing room, but with the share price hovering near yearly lows and a CEO search underway, patience among investors is wearing thin.
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