Nel ASA: A 70 Million Kronen Legal Bill and a CEO Vacancy Test Investor Patience
Published on 07/24/2026 at 13:02 | Redaktion boerse-global.de
The numbers coming out of Nel ASA’s second quarter tell two sharply different stories, and the market is struggling to decide which one matters more. On one hand, the Norwegian hydrogen equipment maker posted a net loss of 189 million Norwegian kroner for the period ended June 30, 2026, ballooning from 131 million kroner a year earlier. On the other, new orders surged 224 percent year-over-year to 230 million kroner, driven almost entirely by its PEM electrolyser technology. The tension between these competing narratives has left the stock trading 46 percent below its 52-week high of €0.3655, reached in late May.
A single extraordinary item explains much of the earnings deterioration. In June, Nel reached a settlement with Iwatani Corporation of America in a long-running California dispute over hydrogen refueling stations. The agreement cost the company approximately $7.5 million, or 70 million kroner at the EBITDA line. Strip that out, and the underlying operating loss still widened — the adjusted EBITDA came in at minus 85 million kroner versus minus 86 million in the year-ago quarter — but the trend is less alarming than the headline figure suggests.
Revenue from customer contracts fell 12 percent year-over-year to 153 million kroner, though total revenue climbed sequentially from 152 million to 182 million kroner. The company’s cash position remains comfortable at 1.328 billion kroner, providing a buffer as management navigates a delicate transition period.
That transition is the second major cloud hanging over the stock. In June, CEO Håkon Volldal announced his departure to pursue another opportunity, though he remains in place while the board searches for a successor. The board has stressed continuity in strategy and priorities, but the absence of a named replacement — and the lack of a firm timeline for one — injects uncertainty into a situation that already demands steady leadership. Nel is simultaneously rolling out a new pressurized alkaline electrolyser platform, trying to convert its order pipeline into production volume, and burning cash while doing so.
Should investors sell immediately? Or is it worth buying Nel ASA?
The order pipeline itself offers the most tangible reason for optimism. New bookings of 230 million kroner in the quarter represented a 171 percent increase from the prior quarter and a 224 percent jump from a year ago. PEM technology accounted for 96 percent of those orders, including two contracts for containerized PEM solutions worth roughly $7 million each. Volldal described the commercial momentum as “encouraging,” pointing to the commercial launch of the PA-series pressurized alkaline platform as a key development.
The total order backlog reached 1.213 billion kroner at quarter-end, up 9 percent from the previous quarter. That backlog, however, will need to translate into much larger production volumes before Nel can approach profitability. Management has been explicit about the thresholds: PEM systems require utilization rates of 20 to 24 percent, while alkaline electrolysers need even higher rates. The company would need annual volumes in the hundreds of megawatts for alkaline technology and tens of megawatts for PEM to turn the income statement positive. A tripling of order intake from a low base is a step in the right direction, but it remains a long way from the scale required.
Competitive pressure adds another layer of difficulty. Management has acknowledged that Chinese supply chains may hold a cost advantage, forcing Nel to compete on efficiency and reliability rather than price. That dynamic makes the successful scaling of its next-generation platforms all the more critical.
Nel ASA at a turning point? This analysis reveals what investors need to know now.
On the charts, the stock’s technical posture reflects the fundamental uncertainty. The shares trade at €0.1966, well below their 200-day moving average of €0.2147, a gap of roughly 8 percent. The relative strength index sits at 36.4, approaching oversold territory but not yet signaling a clear reversal. The 30-day annualized volatility of 42 percent underscores a market that has not reached a consensus on how to value the name.
Nel’s next scheduled catalyst comes on October 21, when it reports third-quarter results. By then, investors will be looking for evidence that the PEM order momentum is translating into revenue and that the CEO search is nearing resolution. Until both conditions are met, the stock appears caught between a promising technology story and a set of operational and leadership risks that give the market ample reason to wait on the sidelines.
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Nel ASA Stock: New Analysis - 24 July
Fresh Nel ASA information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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