Nel ASA: A Hydrogen Order Boom Collides With a Balance Sheet Under Pressure
Published on 08/07/2026 at 11:11 | Redaktion boerse-global.de
The Norwegian electrolyser maker Nel ASA is living a split-screen reality right now. On one side, the order pipeline is swelling at a pace that would make most industrial companies envious. On the other, the income statement is bleeding red ink, the cash pile is shrinking, and the CEO is heading for the exit. Investors are left to weigh a 224% surge in new orders against a net loss that underscores just how far the company is from profitability.
That tension was on full display in the second-quarter numbers released on 15 July. Revenue from customer contracts fell 12% year-on-year to NOK 153 million, down from NOK 174 million in the same period a year earlier. The bottom line showed a net loss of NOK 189 million, a figure that includes a one-off charge of NOK 70 million tied to a legal settlement with Iwatani Corporation of America — an agreement announced on 7 June to resolve the dispute. EBITDA swung to minus NOK 155 million, weighed down by that same extraordinary item.
Yet the order intake tells a very different story. New orders jumped 224% year-on-year to NOK 230 million, with PEM electrolyser equipment accounting for 96% of the total. The overall backlog climbed to NOK 1.213 billion at the end of the second quarter, up 9% from the prior three months. The gap between these two trajectories — booming bookings and sagging revenue — is the central question hanging over the stock.
JPMorgan analyst Patrick Jones is among those urging caution. On Wednesday, he cut his price target on Nel to NOK 1.80 from NOK 2.90, keeping a "Hold" rating. The rationale: persistent pressure on near-term business fundamentals, even as the order dynamic improves. An automated analysis service did lift its rating from "Sell" to "Hold/Accumulate" on the same day, but that purely technical signal offers limited comfort given the stock's recent swings.
Should investors sell immediately? Or is it worth buying Nel ASA?
The market's mood was captured in a volatile stretch this week. On Thursday, the shares swung from a 9.02% intraday gain to a 6.03% decline, falling back below the 38-day moving average in the process. In German trading, the stock closed Thursday at EUR 0.1970, now roughly 46% below its 52-week high reached in late May. On a monthly basis, the shares are down 5.06%. Friday's pre-market trading showed a modest 0.92% uptick to EUR 0.1980.
The leadership transition adds another layer of uncertainty. Håkon Volldal announced his resignation on 15 June to join packaging group Elopak, remaining in his role as President and CEO through a six-month notice period while the board searches for his successor. Until that appointment is made, the market must navigate an extended period of interim management.
The balance sheet offers some breathing room but also a warning. Nel held NOK 1.328 billion in cash at the end of the second quarter — down from NOK 1.928 billion a year earlier. That cushion buys time, but the burn rate is evident. The broader sector backdrop isn't helping either: BP said on Monday it would scale back its hydrogen ambitions, a move widely read as headwind for the entire value chain, including equipment suppliers like Nel. The stock dropped 6.03% that day to NOK 2.18, unwinding the prior session's 9.02% gain.
Nel ASA at a turning point? This analysis reveals what investors need to know now.
On the technology front, Nel is betting on its next-generation pressurised alkaline platform, the PA-Series, unveiled in early May. The company claims the new design requires up to 80% less footprint and cuts system investment costs by 40–60% compared with older atmospheric systems. It also aims to reach 500 megawatts of production capacity by the end of 2026. In April, Nel secured two orders worth USD 7 million each for containerised PEM electrolysers — one from Douglas County Public Utility District in Washington state, the other from an undisclosed customer.
There is at least one signal of internal conviction: board chairman Arvid Moss purchased 100,000 shares on 24 April at an average price of NOK 2.2547, increasing his stake. Whether such insider buying persuades a sceptical market remains to be seen. The next test comes on 21 October, when Nel releases its third-quarter interim report — the moment when investors will find out whether the order boom is finally translating into revenue.
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