Nel ASA Pins Its Turnaround on a Cheaper Electrolyzer as Cash Reserves Erode
Published on 08/15/2026 at 17:33 | Redaktion boerse-global.de
The Norwegian hydrogen equipment maker Nel ASA is betting that a new generation of alkaline electrolyzers can do what its existing product line has so far failed to achieve: convert a surging order pipeline into sustainable profitability. The company's PA-Series platform, unveiled in May after more than eight years of development and prototype testing at its Herøya facility, is designed to slash the turnkey cost of 25-megawatt installations to under $1,450 per kilowatt — a reduction of 40 to 60 percent versus conventional systems.
That cost curve is central to Nel's broader strategy. Management has reaffirmed plans to expand Herøya's manufacturing capacity to 500 megawatts by the end of 2026, with a further doubling targeted for 2027. The logic is straightforward: pair a cheaper product with larger production volumes, and the margin pressure that has dogged the company should begin to ease.
Orders Are Booming — But So Are Losses
The second quarter offered a glimpse of the demand side of that equation. Order intake jumped 224 percent year-on-year to 230 million Norwegian kroner, with PEM systems accounting for 96 percent of new bookings. The order backlog rose 9 percent quarter-on-quarter to 1,213 million kroner, though it remained 3 percent below the year-ago level.
A concrete sign of that momentum came in April, when Nel Hydrogen US landed an order worth roughly $7 million from an American utility for PEM electrolyzer equipment destined for hydrogen production. Individual contracts like that suggest the PEM division is gaining traction even as the wider group's top line contracts.
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The income statement, however, tells a less encouraging story. Revenue from customer contracts fell 12 percent in the second quarter to 153 million kroner, while EBITDA sank to minus 155 million kroner — a figure that includes a 70 million kroner charge tied to the settlement of a dispute with partner Iwatani. Cash reserves have dwindled from 1,928 million to 1,328 million kroner over the past twelve months.
A Stock That's Cheap for a Reason
The market's verdict on all this is visible in the share price. Nel's stock closed Friday at €0.2025, roughly 5.5 percent below its 200-day moving average of €0.2142 and about 45 percent beneath the 52-week high of €0.3655 reached in late May. A recent upgrade from "Sell" to "Buy Candidate" by an automated analysis service has done little to shift the picture — a technical signal that carries limited weight given the fundamental uncertainties.
The leadership transition underway at the top of the company has so far been a sideshow. Håkon Volldal remains in post until year-end while the board searches for his successor, and the stock has actually gained 1.2 percent since the change was announced — evidence that investors are focusing on operational progress rather than the personnel question.
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A Seat at the Table
Nel's positioning in the broader hydrogen and ammonia ecosystem was underscored by a recent industry report on electrochemical ammonia synthesis, which named the company alongside Yara, Fortescue, and Technip Energies as key global players. The report projects that market segment will reach $14.7 billion by 2035. That's not an immediate revenue source for Nel, but the mention reinforces its strategic relevance in a sector that remains long on promise and short on profits.
The real test comes on October 21, when Nel publishes its third-quarter interim report. Investors will be watching whether the cost reductions from the new PA-Series platform are already showing up in margins — and whether the second-quarter order surge can translate into revenue growth that outpaces the steady erosion of the company's cash buffer. For now, the gap between a 224 percent jump in orders and a 12 percent decline in sales remains the defining tension in Nel's recovery story.
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