Nel ASA: A $7.5 Million Legal Settlement Clouds a 224% Order Surge
Published on 07/24/2026 at 07:42 | Redaktion boerse-global.de
The Norwegian electrolyser specialist Nel ASA finds itself caught between two vastly different narratives this quarter. On one side, a legal settlement with Iwatani Corporation of America has carved a deep hole in the company’s earnings. On the other, orders for its PEM technology have more than tripled, offering a glimpse of the demand that could eventually drive a turnaround.
The numbers tell a story of contradiction. Nel reported second-quarter revenue of 182 million Norwegian kroner, down from 215 million kroner in the same period last year. The net loss widened from 131 million kroner to 189 million kroner, largely due to a one-time charge. The culprit: a June 2026 settlement with Iwatani over hydrogen refueling stations in California, which cost Nel roughly $7.5 million — equivalent to 70 million kroner at the EBITDA line. Strip out that legal hit, and the operating picture would have looked markedly healthier.
Yet the order book tells a far more optimistic tale. New orders surged 224% year-over-year to 230 million kroner, with PEM technology — proton exchange membrane systems for hydrogen production — accounting for 96% of the total. A standout contract: a $7 million deal for containerized PEM units destined for a US project. The backlog swelled to 1.213 billion kroner, up 9% from the prior quarter. Management points to these wins as evidence that demand for hydrogen infrastructure remains robust, even if the path to profitability remains elusive.
Should investors sell immediately? Or is it worth buying Nel ASA?
The market, however, is not buying the optimism. Nel’s shares trade at 0.2010 euro, roughly 45% below the 52-week high of 0.3655 euro set in May. The relative strength index sits at 38.9, flirting with oversold territory, but no clear reversal signal has emerged. The stock also languishes about 6% below its 200-day moving average of 0.2148 euro — a level that has repeatedly acted as resistance in recent weeks. Over the past month, the shares have shed 5.19%, and the 12-month decline stands at 12.23%.
Adding to the uncertainty, CEO Håkon Volldal has announced he will step down later in 2026. The leadership transition compounds investor unease, particularly as the company tries to navigate a period of rising orders but falling revenue and mounting legal costs. Nel’s cash position of 1.328 billion kroner provides some cushion, but the combination of a shrinking top line, a costly settlement, and a departing chief executive has kept many market participants on the sidelines.
The consensus among analysts remains firmly bearish — no analyst currently recommends buying the stock, and the average rating sits at sell. The company’s next catalyst comes on October 21, when it reports third-quarter results. By then, the market will be watching to see whether the PEM order momentum can translate into actual revenue growth, or whether the legal and leadership headwinds will continue to weigh on the stock.
Nel is also pinning hopes on its new pressurized alkaline platform, which management says will significantly reduce footprint and capital costs. First orders for that technology are expected in the coming months. The company aims to reach 500 megawatts of manufacturing capacity by the end of 2026, doubling to one gigawatt in 2027, backed by EU funding in the hundreds of millions of euros. For now, though, those ambitions remain just that — ambitions — while the market waits for proof that orders can become profits.
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