Nel ASA's Financial Crossroads: A Surge in Orders Amidst Steep Losses

Nel's Q4 2025 shows surging orders but a deep net loss on impairments. Revenue fell 31% for the year, while a key EU-funded expansion advances.

Nel ASA's 2025 financial results present a stark dichotomy. While the company's order book swelled to multi-quarter highs, its revenue contracted sharply, and significant non-cash impairments drove a deep quarterly loss. This divergence frames the critical challenge facing the hydrogen technology firm: the speed at which it can convert its burgeoning backlog into tangible sales.

Order Intake Skyrockets, Led by PEM Technology

Contrasting sharply with the weak revenue performance, Nel's order intake surged dramatically in the final quarter. New orders booked in Q4 2025 totaled NOK 686 million. This represents a staggering 364% increase compared to the NOK 148 million recorded in the same period of 2024 and stands as the company's second-best quarterly result historically.

The total order backlog consequently climbed to NOK 1.3 billion. Approximately 70% of this backlog is attributed to Proton Exchange Membrane (PEM) technology. Key contributions included contracts for the HyFuel and Kaupanes hydrogen projects from Hydrogen Solutions AS (HYDS). These projects collectively account for 40 MW of capacity and carry a value exceeding USD 50 million.

Revenue Decline and Persistent EBITDA Loss

For the full year 2025, Nel's revenue fell to NOK 963 million, marking a 31% decrease from the NOK 1,390 million reported in 2024. The weakness persisted into the fourth quarter, where revenue from customer contracts amounted to NOK 330 million, down 20% year-over-year.

The line item for total revenue and other income in Q4 was NOK 361 million, compared to NOK 450 million in Q4 2024. The company's EBITDA remained negative at NOK -36 million, unchanged from both the preceding quarter and the year-earlier period.

Impairments Drive Deep Net Loss

The most striking figure in the report was the net loss for the fourth quarter, which widened to NOK -870 million from NOK -64 million in the prior year. This was primarily driven by non-cash impairment charges totaling NOK 799 million.

Of these impairments, NOK 439 million related to goodwill and intangible technology values within the PEM segment. A further NOK 361 million concerned production assets for alkaline electrolyzers at the Herøya facility. Cumulatively, the net loss for the full year 2025 reached NOK -1,265 million, a significant increase from the NOK -258 million loss in 2024.

Herøya Expansion Advances with EU Support

A crucial development for the future is the final investment decision for the Herøya site. On December 12, 2025, Nel's board approved the industrialization of its "Next Generation Pressurized Alkaline" platform at the location. This technology, in development since 2018, has reportedly completed full-scale prototype testing.

The project is set to receive support of up to EUR 135 million from the EU Innovation Fund, covering approximately 60% of the eligible costs. For the initial 1 GW phase, Nel estimates investments of around NOK 300 million before funding, allocated across 2026 and 2027. Market launch is planned for the first half of 2026, with larger-scale deliveries commencing in 2027.

The company closed the quarter with a solid cash position of approximately NOK 1.6 billion.

Investor attention now turns to the upcoming reporting dates: Q1 2026 figures are scheduled for release on April 22, followed by the half-year report on July 15. The central question remains whether the robust order intake will translate into recognized revenue on the income statement more rapidly than it has to date.