Nel ASA's Financial Crossroads: Annual Report to Set the Tone

Nel ASA's 2025 results, out Feb 26, will test revenue recovery and detail liquidity after a major NOK 300M investment in next-gen electrolyzer capacity.

All eyes are on Norwegian hydrogen technology firm Nel ASA as it prepares to release its fourth-quarter and full-year 2025 financial results. The announcement, scheduled for 07:00 CET on February 26, will be followed by a virtual presentation and Q&A session an hour later. This report arrives at a pivotal moment for the electrolyzer manufacturer, coming just months after a major capital expenditure decision. Nel's shares last traded at NOK 2.036 on the Oslo Bourse on February 25.

A Year Marked by Revenue Volatility

The 2025 fiscal period was characterized by significant revenue fluctuations, a common feature of the project-driven electrolyzer industry where large system deliveries depend on the progress of global hydrogen initiatives. The year opened with Nel generating approximately NOK 155 million in Q1 revenues. A sharp decline followed in the second quarter, with revenues dropping to NOK 174 million—a 48% decrease compared to the same period the prior year. A substantial sequential recovery occurred in Q3, where total revenue climbed to NOK 349.1 million and contract revenue reached NOK 303 million. This represented a 74% increase from Q2, though it remained 17% below the level seen in the third quarter of 2024. The forthcoming Q4 figures will reveal whether this positive momentum was sustained through the year's end.

Strategic Investment for Next-Generation Technology

In a significant strategic move on December 12, 2025, Nel's board approved a major investment to establish up to 1 GW of production capacity for its Next Generation Pressurized Alkaline platform at its Herøya facility. The project carries an estimated cost of NOK 300 million before grants.

The European Union's Innovation Fund is supporting the initiative with up to €135 million, covering as much as 60% of relevant costs. The investment decision itself triggered an initial milestone payment exceeding €10 million. Capital expenditures will be spread across 2026 and 2027, with a commercial launch targeted for the first half of 2026 and industrial-scale deliveries commencing in 2027. The company hails this seven-year development, which included successful prototype testing at Herøya, as a breakthrough for green hydrogen economics, promising reduced system costs and improved energy efficiency.

Key Metrics for Investor Scrutiny

Market participants will focus on several critical data points in the upcoming report. Fourth-quarter revenue will indicate the durability of the Q3 recovery, while the full-year 2025 turnover will be measured against the previous year's result of NOK 1.39 billion. The order backlog stood at NOK 984 million at the close of the third quarter.

Given the planned Herøya investment, Nel's liquidity position is of paramount importance. At the end of the last reported quarter, the company held roughly NOK 1.76 billion in cash with a gearing ratio of 5%. Year-to-date, the share price has declined by 8.78%, trading within a 52-week range of NOK 1.947 to NOK 3.613.

Late-Year Contract Wins Provide Momentum

Nel secured several substantial contracts as 2025 drew to a close. In November, the company landed a PEM electrolyzer order valued at over $50 million for the Norwegian HyFuel and Kaupanes projects. Management described this as the second-largest firm order in the company's history and its single largest PEM equipment contract to date.

This was preceded by an October order from Swiss firm H2 Energy for a containerized MC500 PEM electrolyzer unit destined for a waste disposal plant in Buchs.