Nel ASA Shares Surge on Record-Breaking Order Momentum

Nel's Q4 2025 order intake surged 364%, driving a 20% stock jump despite a yearly loss. The company completed a strategic pivot to next-gen electrolyzer tech.

Investors propelled Nel ASA's stock price upwards by more than 20% on the Oslo exchange, a direct response to the company's annual figures. The catalyst was not a strong overall performance for 2025, but rather a final quarter that dramatically exceeded expectations for new orders and marked the completion of a pivotal strategic shift.

Strategic Pivot and Financial Headwinds

The full-year financial picture for 2025 was challenging. Revenue declined by 31% to NOK 963 million, down from NOK 1.39 billion the previous year. The net loss for the year expanded significantly to NOK 1.265 billion, compared to a loss of NOK 244 million in 2024.

A major component of this loss was non-cash impairment charges totaling NOK 799 million. These write-downs, relating to production facilities for atmospheric alkaline electrolysis (NOK 361 million) as well as goodwill and intangible technology values (NOK 439 million), reflect a deliberate strategic move away from a first-generation technology. Concurrently, Nel reduced its personnel expenses by 12% to NOK 569 million and trimmed its workforce from 430 to 346 full-time positions.

A Transformative Quarter for Orders

The fourth quarter delivered a decisive turning point. Order intake skyrocketed by 364% to NOK 686 million, a substantial leap from NOK 148 million in the same period a year earlier. This surge boosted the order backlog to NOK 1.319 billion—a 34% increase from the third quarter of 2025. Approximately 70% of this backlog is attributed to PEM (Proton Exchange Membrane) technology.

This growth was fueled by several major contract wins. Samsung Engineering & Construction appointed Nel as its preferred global hydrogen partner. Additional orders were secured from HYDS and Collins Aerospace. The single largest contract came from HYDS for a 40-megawatt PEM electrolyzer destined for two Norwegian sites, which the company describes as the highest-capacity PEM order in its history.

Capitalizing on Next-Generation Technology

Following a seven-year development program, Nel's board has made the final investment decision to construct a new-generation, pressurized alkaline electrolyzer production facility at Herøya, with a capacity of up to one gigawatt. The first phase of this expansion requires roughly NOK 300 million in equity, partially offset by a committed grant of up to €135 million from the EU Innovation Fund. This grant is expected to cover about 60% of the eligible costs. The long-term ambition for the Herøya site is an annual production capacity of four gigawatts.

Management positions this new technology as competitive against Chinese electrolyzers, particularly outside of China, where significantly lower labor costs are anticipated to balance any price differential. With a cash position of approximately NOK 1.6 billion, the company believes it has sufficient financial runway to manage this transition.

The first concrete indication of how swiftly the order backlog will convert into revenue will come with the release of the Q1 2026 report on April 22.