Nel ASA Reports Record Loss Amid Unprecedented Order Surge

Nel's 2025 revenue fell 31% with a 1.27B NOK net loss, but new orders jumped 364% in Q4 as the firm pivots to next-gen electrolyzer tech.

Norwegian hydrogen technology firm Nel ASA has unveiled financial results for 2025 that present a stark dichotomy, highlighting the challenging dynamics within the green hydrogen sector. The company’s annual report, published on February 26, 2026, reveals a historic net loss coinciding with a dramatic influx of new orders.

Financial Performance Under Pressure

Revenue for the full year 2025 contracted significantly, falling 31 percent to 963 million Norwegian kroner (NOK) from 1.39 billion NOK in the prior year. The fourth quarter alone saw a 20 percent decline in revenue to 330 million NOK.

The bottom line, however, showed far greater strain. Nel’s net loss ballooned to 1.265 billion NOK for the year, a sharp increase from the 244 million NOK loss recorded in 2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also turned negative, landing at minus 275 million NOK. A major factor behind this deterioration was a substantial 799 million NOK in impairment charges. These write-downs included 361 million NOK related to first-generation atmospheric alkaline electrolyzer production assets and a further 439 million NOK against goodwill and technology values, effectively drawing a line under the company's initial technological platform.

Order Books Defy Operational Weakness

In a contrasting trend, the company’s future pipeline strengthened considerably. New order intake in the final quarter of 2025 skyrocketed by 364 percent to 686 million NOK, up from just 148 million NOK in the same period a year earlier. Consequently, the total order backlog expanded to 1.319 billion NOK by year-end, marking a 34 percent sequential increase from the third quarter.

Key client wins underpinned this growth. Samsung Engineering & Construction (Samsung E&A) designated Nel as its preferred global hydrogen partner. Additional significant orders were secured from HYDS and Collins Aerospace. The division focused on Proton Exchange Membrane (PEM) electrolysis technology was noted for its particular resilience.

Strategic Pivot to Next-Generation Technology

Looking ahead, management is pinning its hopes on a new technological platform. In December 2025, Nel’s board approved the industrialization of its "Next Generation Pressurized Alkaline" platform at the Herøya manufacturing site. This technology, under development since 2018, has successfully completed its prototype phase.

The initial development phase targets a production capacity of one gigawatt and will require a capital investment of approximately 300 million NOK before accounting for public grants. The project has secured support of up to 135 million euros from the EU Innovation Fund, covering an estimated 60 percent of eligible costs. The long-term ambition for the Herøya facility is an annual output capacity of up to four gigawatts.

Market launch for the new platform is scheduled for the first half of 2026, with larger-scale deliveries anticipated from 2027 onward.

Solid Balance Sheet Provides Foundation

Despite the annual loss, Nel’s financial position remains robust. The company closed the fourth quarter with strong liquidity, holding cash and cash equivalents of roughly 1.6 billion NOK. Its market capitalization stood at approximately 4 billion NOK as of the end of January 2026, with about 1.84 billion shares outstanding.

Trading on the Oslo Stock Exchange, Nel shares were priced near 2.10 NOK on February 20, 2026. Over the preceding 52-week period, the stock fluctuated between a low of 1.95 NOK and a high of 3.61 NOK.

Investors will monitor upcoming milestones closely. The annual general meeting is set for April 10, followed by the release of first-quarter 2026 results on April 22. The half-year report for 2026 is due on July 15. The central question for Nel’s share price trajectory will be its ability to successfully convert its substantial order backlog into sustained revenue growth.