Nel ASA: A $7.5 Million Legal Settlement and Fresh US Tariffs Test a 224% Order Surge
Published on 07/28/2026 at 03:12 | Redaktion boerse-global.de
Nel ASA’s stock edged up 0.9 percent on Monday to €0.1986, a modest gain that belies the twin pressures bearing down on the Norwegian hydrogen company. While the share price remains nearly 46 percent below its May 2026 high of €0.3655, the real story lies in the crosscurrents between surging demand and mounting headwinds.
The company’s second-quarter results revealed a stark contrast. On one side, order intake exploded 224 percent year-over-year to 230 million Norwegian kroner, with the PEM (Proton Exchange Membrane) segment accounting for 96 percent of that inflow. The total order backlog stood at 1.213 billion kroner at the end of June, pointing to a robust project pipeline.
On the other side, the bottom line took a heavy hit. Nel reached a settlement with Iwatani Corporation of America over technical and operational issues at hydrogen refueling stations in California, costing the company 70 million kroner — roughly $7.5 million. That charge pushed the net loss to 189 million kroner, up from 131 million in the same quarter last year, and widened the EBITDA deficit to 155 million kroner from 100 million in the first quarter. Revenue from customer contracts slipped 12 percent to 154 million kroner.
The legal resolution was amicable, but its financial sting is undeniable. Nel is simultaneously pushing ahead with the industrialization of its next-generation electrolyzer lineup, including the commercial launch of the pressurized alkaline PA-Series platform, which management hopes will sharpen long-term competitiveness.
Should investors sell immediately? Or is it worth buying Nel ASA?
Fresh trade policy complications now add another layer of uncertainty. On July 24, 2026, the Office of the US Trade Representative activated new Section 301 tariffs under the Trade Act of 1974, targeting imports from 60 economies — including Norway and the European Union — with additional duties of 10 to 12.5 percent. The measure, officially aimed at combating forced labor in global supply chains, covers nearly 99.4 percent of all US imports.
For Nel, which manufactures its electrolyzers primarily in Norway, the tariffs raise the cost structure for its North American expansion plans at a time when the hydrogen industry is already grappling with high production expenses and slower-than-expected infrastructure buildout. Analysts caution that these trade barriers could compress margins just as the company tries to convert its swelling order book into profitable revenue.
Nel’s balance sheet offers some buffer: the company held approximately 1.328 billion kroner in cash at the end of the second quarter. But investors are watching closely to see how effectively that capital cushion can absorb the combined impact of the Iwatani settlement and the new tariff regime.
Nel ASA at a turning point? This analysis reveals what investors need to know now.
The stock’s relative strength index of 38.3 reflects a cautious, slightly bearish sentiment among traders. The next major checkpoint arrives on October 21, 2026, when Nel reports third-quarter results. That release will provide the first concrete evidence of whether the tariff costs are cutting into margins and whether the dramatic surge in order intake can begin to offset the legal and trade-related drags on earnings.
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