Nel ASA's Balancing Act: New Electrolyzer Hopes Meet Persistent Cash Drain
Published on 08/09/2026 at 18:52 | Redaktion boerse-global.de
The Norwegian hydrogen equipment maker Nel ASA is navigating one of the most consequential stretches in its recent history, juggling a flagship product launch, a leadership vacuum, and a balance sheet that continues to shrink quarter after quarter. The company's second-quarter 2026 results, published on 15 July, capture the tension at the heart of the business: demand signals are brightening, yet the path to profitability remains long and expensive.
Orders Surge While Revenue Stalls
The headline number from the quarter was an order intake that jumped 224% year-on-year to NOK 230 million, with the total backlog reaching NOK 1.213 billion — roughly flat against the prior year but up sequentially. Notably, nearly all of that intake growth came from the PEM electrolyser division, while the legacy alkaline business ceded ground.
That momentum, however, has yet to translate into top-line strength. Revenue from customer contracts fell 12% to NOK 153 million, compared with NOK 174 million in the same period a year earlier. A second reading of the numbers puts total revenue at NOK 182 million, down 15.6% year-on-year, with segment-level detail showing PEM revenue up 31% quarter-on-quarter to NOK 97 million but still negative on an annual basis, while the alkaline unit shrank 14% year-on-year.
The Cost of Closure
The EBITDA loss widened to minus NOK 155 million, weighed down by a one-off settlement payment of NOK 70 million tied to the June resolution of a legal dispute with Iwatani Corporation of America. The net loss deepened to NOK 189 million, up from NOK 131 million in the year-ago quarter — a reminder that the company remains far from the breakeven thresholds it has outlined for both of its core businesses.
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Management has been explicit about what profitability would require: annual alkaline volumes in the hundreds of megawatts, and PEM systems running at 20–24% utilisation. Those targets remain distant, and the cash position reflects the strain. Nel ended the quarter with NOK 1.328 billion in reserves, down sharply from NOK 1.928 billion a year earlier — a burn rate that keeps capital adequacy front and centre for investors.
A New Platform Takes Shape
The company's central growth bet is the Next Generation Pressurized Alkaline platform, unveiled in May, which Nel says could cut total system investment costs by 40–60% versus current technology. Commercial deliveries are slated to begin in 2027, with prototype tests reportedly encouraging. The EU Innovation Fund is backing the project with EUR 135 million in support, and Nel received its first milestone payment during the second quarter. Production capacity is expected to reach 500 MW by the end of 2026, with the option to scale to one gigawatt in 2027.
Nel has also lined up a strategic partnership with Norwegian firm GreenH AS to build two new hydrogen production plants, adding a tangible commercial anchor to the product roadmap. To bridge an anticipated utilisation gap in 2027, the company is leaning on containerised PEM systems that can be delivered in under twelve months.
Leadership Uncertainty and an Insider Vote of Confidence
The operational transition is unfolding against an open question at the top. CEO Håkon Volldal announced his resignation in June to pursue other opportunities, remaining in post through a six-month notice period while the board searches for a successor. His departure is expected around year-end, adding a layer of uncertainty to a period already defined by heavy capital spending.
There has been at least one signal of internal conviction: in April, board chairman Arvid Moss purchased 100,000 shares at an average price of NOK 2.2547 — his first direct stake in the company.
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Analyst Caution and a Muted Market
JPMorgan, for its part, is keeping its powder dry. On 4 August, the bank reaffirmed its "Hold" rating but slashed its twelve-month price target from NOK 2.90 to NOK 1.80, a cut that suggests the legal overhang and leadership gap are weighing more heavily than the promise of the new electrolyser generation.
The share price tells a similar story of tempered expectations. Nel ASA closed Friday at EUR 0.1994, up 1.63% on the day, but still roughly 45% below its 52-week high and about 6.95% under its 200-day moving average. The stock's recent recovery has done little to repair the longer-term trend.
Investors will get their next read on the company's trajectory when Nel publishes its third-quarter report on 21 October — a data point that should reveal whether the order momentum from Q2 is translating into tangible revenue and margin effects, or whether the cash drain continues to outpace the turnaround.
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