Nel ASA's Order Book Surges, Yet the Market Remains Unconvinced
Published on 08/19/2026 at 04:05 | Redaktion boerse-global.de
The gap between Nel ASA's pipeline and its profit-and-loss statement has rarely been wider. Norway's hydrogen equipment maker booked incoming orders worth 230 million Norwegian kroner in the second quarter of 2026 — a 224 percent jump from the 71 million kroner recorded a year earlier. The backlog swelled to 1,213 million kroner by quarter's end, while cash on hand stood at 1,328 million kroner.
Those headline numbers, however, mask a business still struggling to convert momentum into money. Revenue from customer contracts slipped 12 percent year-on-year to 153 million kroner, and total income from sales and other sources fell to 182 million kroner from 215 million kroner in the prior-year period.
The EBITDA loss of 155 million kroner was aggravated by a one-off settlement with Japanese partner Iwatani worth 70 million kroner. Within the portfolio, the PEM electrolyzer division managed to improve sequentially, but the alkaline business saw revenue drop 14 percent against the previous year. The contrast between a swelling order book and contracting revenue defines the central tension for investors: Nel is filling its pipeline, yet the earnings from existing projects are lagging behind.
A Cheaper Platform Takes Center Stage
Management's answer to the margin squeeze arrived this spring with the launch of the PA-Series, a pressurized alkaline system that the company claims cuts space requirements by 80 percent and lowers capital expenditure by 40 to 60 percent compared with conventional installations. The product bet is backed by a manufacturing roadmap: capacity at the Herøya site in Norway is slated to reach 500 megawatts by the end of 2026, doubling to 1 gigawatt the following year. European Union funding of 135 million euros, announced roughly three weeks ago, is earmarked to support that expansion.
Demand signals have also come from the PEM side, where Nel secured two orders for containerized solutions worth approximately 7 million US dollars each — evidence that select customers remain willing to commit capital despite the broader headwinds facing hydrogen project financing.
While Nel bets on a cheaper platform to protect its margins, UK employers face their own cost pressures — especially when a workplace incident exposes gaps in safety documentation. A free toolkit with 41 ready-to-use templates and checklists helps you document hazards properly and stay compliant. Download the free Risk Assessment Toolkit
Leadership Vacancy Adds to Investor Caution
The operational developments are unfolding against an unsettled corporate backdrop. About a month ago, Nel disclosed that CEO Håkon Volldal would step down to pursue another opportunity, remaining in place during a six-month notice period until a successor is named. Since that announcement, the stock has shed roughly 2.8 percent. A further 1.9 percent decline followed news, surfacing about two weeks ago, that several energy majors had postponed hydrogen projects.
The share price has yet to reflect the order intake strength. Nel last traded at 0.1944 euros after a daily loss of 2.5 percent, leaving the stock roughly 47 percent below its 52-week high of 0.3655 euros. The secondary source puts the current price at 0.1958 euros, down 4.5 percent on the week and 5.7 percent beneath the 50-day moving average of 0.2077 euros — a gap that underscores how far the equity has drifted from its short-term trend.
Analyst sentiment has followed suit. In early August, JP Morgan trimmed its price target for Nel from 2.90 to 1.80 Norwegian kroner while maintaining a Neutral rating — the most recent documented Wall Street response to the quarterly figures.
What to Watch Next
The next milestone on the calendar is the third-quarter report due October 21, 2026. By then, investors will have a clearer read on whether the Q2 order surge was an outlier or the start of a sustained uptrend. The financial buffer — roughly 1.3 billion kroner in liquid assets against a backlog of 1.2 billion kroner — should cover the Herøya expansion without forcing a near-term capital raise, but it also buys only so much time.
The decisive question remains whether the PA-Series can translate into fatter margins, or whether settlement costs and the weak alkaline division will continue to overshadow progress in PEM. A new chief executive, once appointed, could also reset strategic priorities. For now, the market is taking a wait-and-see posture, weighing the promise of a fuller order book against the reality of a loss-making present.
