Nel ASA's PEM Unit Outpaces a Shrinking Group as Rheinmetall Talks Stay Exploratory
Published on 11/02/2026 at 22:20 | Editorial boerse-global.de
Nel ASA's third-quarter 2026 report, released roughly three weeks ago, lays out a company pulling in two directions at once. Customer contract revenue fell 63% year on year to NOK 112 million, yet orders kept flooding in — a gap that now defines the investment case more than any single headline number.
The clearest bright spot sits inside the PEM business, where revenue climbed 65% to NOK 89 million. That means a substantial share of the group's total contract revenue now comes from this segment alone. Read alongside the group-wide decline, it points to a growing operation inside an otherwise weak quarter — not to a company-wide turnaround.
Order Intake Triples, but Orders Are Not Revenue
Group order intake jumped 339% to NOK 253 million, lifting the order backlog to NOK 1,314 million. PEM drove much of that momentum: intake for the segment surged 473% to NOK 245 million.
Those figures sketch a path toward a later recovery, though intake and revenue measure different stages of the cycle. Only execution can demonstrate how far the stronger demand actually carries the operating business.
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Concrete evidence of that demand arrived in the form of a roughly USD 12 million order booked by subsidiary Nel Hydrogen US from an unnamed US-based global technology company. The contract covers several containerised PEM electrolysers plus services, with delivery slated for 2027. That timeline caps what the deal says about current trading: it underpins the PEM unit's outlook without translating into revenue already on the books.
Rheinmetall: A Letter of Intent, Not an Order
A second initiative announced around the same time carries far less certainty. Under the Giga PtX banner, Nel and Rheinmetall are examining decentralised plants for synthetic fuels derived from renewable hydrogen. Possible applications under review span defence and critical infrastructure, along with scalable, modular solutions for the Norwegian market.
The two announcements should not be weighed equally. One is a confirmed purchase; the other is an intent declaration that remains explicitly open-ended. Treating them as equally secured future business would blur a meaningful difference in binding force. Should the Rheinmetall cooperation bear fruit, it could generate additional business — but while it stays exploratory, it substitutes for no firm order.
Losses Keep the Cautious Tone Intact
Earnings figures reinforce the restraint. Nel reported third-quarter 2026 EBITDA of minus NOK 93 million and a net loss of NOK 141 million. A fuller order pipeline on its own therefore falls short as proof of financial stabilisation. What matters is whether bookings convert into revenue while the bottom line improves at the same time.
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Into this operating picture steps an announced leadership change. Morten Holum has been appointed to succeed Håkon Volldal as group chief executive and is due to take office no later than 1 May 2027. Until then, finance chief Kjell Christian Bjørnsen is set to lead the company on an interim basis, with Torbjørn Berg stepping in temporarily to head the finance function.
The handover does not alter the status of any project. For shareholders, the firmer yardsticks remain the execution of confirmed orders and the trajectory of earnings. Rising bookings strengthen the outlook, but a durable all-clear demands more than a fuller order book — it requires progress on both revenue and results.
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