Nel ASA's 2025 Results: A Tale of Deepening Losses and Surging Orders

Nel's 2025 financials show a 31% revenue drop and a 1.3B NOK net loss, but Q4 order intake surged 364%, signaling a potential turnaround driven by PEM electrolyser contracts.

Norwegian hydrogen technology company Nel ASA released its fourth quarter and full-year 2025 financial report on February 26, 2026. The figures paint a complex picture of a company at a potential inflection point, grappling with significant ongoing losses while simultaneously securing a dramatic rebound in new business.

A Year of Substantial Financial Setbacks

For the full 2025 fiscal year, Nel's revenue contracted sharply to 963 million NOK, representing a 31% decline from the 1,390 million NOK reported in 2024. The fourth quarter alone saw revenue fall to 330 million NOK, a 20% drop compared to the 416 million NOK generated in the same period the previous year. Total income, which includes other earnings, decreased from 450 million to 361 million NOK for the quarter.

The company's earnings performance remained deeply negative. The quarterly EBITDA was -36 million NOK, unchanged from both the prior quarter and the year-ago period. Annually, the EBITDA loss widened considerably to -275 million NOK from -173 million NOK in 2024.

Impairments Drive Quarterly Net Loss to 870 Million NOK

The most striking figure in the report was a net loss of 870 million NOK for Q4 2025, a severe deterioration from the 64 million NOK loss recorded in Q4 2024. This was primarily driven by substantial non-cash impairment charges totaling 799 million NOK.

A detailed breakdown shows 439 million NOK of this impairment was related to goodwill and intangible technology assets within the Proton Exchange Membrane (PEM) segment. A further 361 million NOK was attributed to production facilities for alkaline electrolysers at the Herøya site. Cumulatively, the net loss for the entire year reached 1,265 million NOK, compared to 258 million NOK in 2024.

A Beacon of Hope: Order Intake Skyrockets

Amid the challenging financial results, one metric shone brightly: new order intake. The company booked orders worth 686 million NOK in the fourth quarter, an extraordinary 364% increase from the 148 million NOK received in the final quarter of 2024. Consequently, the order backlog grew to 1,319 million NOK by quarter-end, a 34% sequential increase from Q3.

The PEM division was the clear driver, accounting for 93% of the new orders. Key wins included contracts for the HyFuel and Kaupanes hydrogen projects, both developed by Hydrogen Solutions AS (HYDS). These projects, with a combined capacity of 40 megawatts, carry a value exceeding 50 million USD. Furthermore, Swiss-based H2 Energy placed an order for an additional containerized MC500 electrolyser unit—marking its third such purchase from Nel.

Segment Performance Breakdown

An analysis of Nel's three reporting segments reveals varied performance trajectories.

• Alkaline Electrolysers: Quarterly revenue here fell 33% to 177 million NOK. However, segment EBITDA improved to 36 million NOK from 19 million NOK a year earlier, aided by completed project deliveries and the realization of compensation claims. Annually, the segment posted an EBITDA of -16 million NOK, a significant reversal from the positive 127 million NOK in 2024. The backlog stood at 440 million NOK.

• PEM Electrolysers: Revenue held steady at 153 million NOK year-over-year. The segment's EBITDA loss deepened to -35 million NOK from -22 million NOK, largely due to a near-doubling of R&D expenditures to 60 million NOK. On a full-year basis, the EBITDA loss narrowed to -138 million NOK from -165 million NOK in 2024. This segment holds the largest backlog at 878 million NOK.

• Corporate: The corporate segment reported an EBITDA loss of 37 million NOK for the quarter, compared to a loss of 33 million NOK previously. The annual loss improved slightly to -121 million NOK from -135 million NOK in 2024.

Operational Advances and Liquidity

On the operational front, Nel reported that prototype testing for its next-generation pressurized alkaline electrolyser has exceeded expectations. The company has also made a final investment decision on a new production line, which will receive support from the EU Innovation Fund.

Liquidity resources amounted to 1,617 million NOK at the quarter's close, down from 1,876 million NOK a year earlier.

The Path Forward

Nel's 2025 report encapsulates the current dichotomy within the hydrogen sector. While operational revenue continues to decline and balance sheet impairments weigh heavily, the explosive growth in new orders signals a potential shift in momentum. The critical challenge for Nel will be the speed and efficiency with which it can convert this robust backlog into recognized revenue. Investors will gain their next insight when the company reports its Q1 2026 figures, scheduled for May 6, 2026.