Nel ASA Navigates a Year of Contrasts: Record Losses Amid Unprecedented Orders

Nel's 2025 results show a strategic pivot causing a record net loss of NOK 1.265B, while order intake surged 364% to NOK 686M, signaling strong future demand for its hydrogen tech.

The Norwegian hydrogen technology company Nel ASA presented its 2025 financial results, revealing a year defined by starkly opposing narratives. While the bottom line showed the deepest net loss in the firm's history, its order book simultaneously reached a near-record high, painting a complex picture of transition and future potential.

Strategic Shift Drives Deep Financial Losses

A significant strategic pivot away from older technology came at a substantial cost in 2025. The company reported a net loss of 1.265 billion Norwegian kroner (NOK), a sharp increase from the 244 million NOK loss recorded the previous year. This result was heavily impacted by non-cash impairment charges totaling 799 million NOK in the fourth quarter alone.

These write-downs were not accidental but represented a deliberate move. The charges included 361 million NOK related to atmospheric alkaline production equipment and 439 million NOK for goodwill and intangible technology assets, signaling a clear departure from legacy systems. Accompanying this shift, Nel reduced its workforce from 430 to 346 full-time positions, leading to a 12% reduction in personnel costs.

Revenue for the year declined by 31% to 963 million NOK, down from 1.39 billion NOK in 2024. Company leadership attributed this drop to irregular delivery schedules for large-scale projects, which are highly dependent on customer-side construction progress.

Order Intake Signals Robust Future Demand

In direct contrast to the income statement, the company's commercial pipeline delivered exceptionally strong signals. Order intake skyrocketed by 364% to 686 million NOK, marking the second-highest level in Nel's corporate history. The order backlog consequently climbed to 1.3 billion NOK, with approximately 70% of this value attributable to PEM (Proton Exchange Membrane) technology.

The company secured several key new clients. Samsung Engineering & Construction selected Nel as its preferred global hydrogen partner. Additional new customers included HYDS and Collins Aerospace. Notably, the order from HYDS for a 40-megawatt PEM electrolyzer for two Norwegian sites is described by Nel as its largest PEM contract by capacity to date.

Herøya Facility: The Cornerstone of a Cost-Competitive Future

Central to Nel's strategy for 2026 is the industrialization of its new "Next Generation Pressurized Alkaline" platform at the Herøya plant. This project, in development since 2018, has now completed its prototype phase. The first expansion phase targets a production capacity of one gigawatt and requires a capital investment of roughly 300 million NOK, before accounting for public grants.

The company has secured support of up to 135 million euros from the EU Innovation Fund, covering about 60% of the eligible costs. This new platform is designed to reduce the system footprint by 80% and lower capital costs by 40-60%, a direct response to competitive pressure from lower-cost Chinese manufacturers. Market launch is scheduled for the first half of 2026, with larger-scale deliveries expected from 2027 onward.

Despite the reported losses, Nel ended the year with a solid liquidity reserve of approximately 1.6 billion NOK, providing a buffer to navigate this transitional period.

Investors will be watching for upcoming milestones, including the Annual General Meeting on April 10 and the Q1 2026 report on April 22. The critical test will be whether the record-high order backlog can be converted into revenue more swiftly than in the past, a question that will be answered by the mid-year financial figures.