Nel ASA Posts 63% Revenue Slide and Wider Q3 Loss as Order Intake Triples

Nel ASA's third-quarter 2026 report landed with a stark split verdict: demand is roaring back, but the bottom line is heading the other way. Shares fell 6.3% as investors weighed a NOK 253 million order intake — up 339% year on year — against a NOK 112 million revenue haul from customer contracts, down 63% from the same period a year earlier.

The Norwegian hydrogen equipment maker's numbers lay bare a timing gap that has become the central question for shareholders. Orders describe future business; revenue and earnings describe what has already been booked. Right now, those two tracks are moving in opposite directions.

PEM Fires on Both Cylinders, Alkaline Drags

The quarter's bright spot was unmistakably the PEM segment. Revenue there climbed 65% to NOK 89 million, and PEM accounted for 97% of group order intake. That performance, however, was not enough to offset weakness elsewhere.

Alkaline revenue collapsed 91% to NOK 23 million, with the segment posting negative EBITDA of NOK 41 million. Lower activity in that business was the primary weight on group revenue. Nel is testing a new pressurized alkaline technology and has plans for a production line at Herøya, though those initiatives remain separate from the currently reported figures — testing and expansion plans do not yet constitute a commercial recovery.

At the group level, EBITDA came in at NOK -93 million, a sharp deterioration from NOK -37 million in the prior-year quarter. Net loss reached NOK 140.68 million, compared with NOK 84.7 million a year earlier. Total revenue and income stood at NOK 138.12 million.

Cash Position Tightens

The company's cash balance fell to NOK 1,078 million from NOK 1,757 million a year earlier. While the lower figure alone does not fully explain how funds were deployed, it underscores the pressure on the group to improve operations. The order recovery has yet to translate into any relief at the earnings line.

On the demand side, the picture is considerably brighter. The order backlog rose 34% to NOK 1,314 million, giving Nel a broader base for future revenue. Yet a backlog is not booked revenue, and certainly not profit — a distinction that matters when assessing the quarter.

US Contract Points to 2027 Delivery

Illustrating just how far orders can sit from revenue recognition, subsidiary Nel Hydrogen US secured a contract worth roughly USD 12 million from an unnamed US-based global technology company. The order covers multiple containerized PEM electrolysers plus associated services, with delivery expected in 2027.

That contract supports the PEM segment's outlook but does not counter the current earnings weakness. What matters for any operational turnaround is converting the stronger pipeline into revenue while reining in losses. Until then, the gap between order momentum and financial performance will remain the defining feature of Nel's investment case.