Nel ASA's Record Quarter Hides a Simpler Story Beneath the Surface
Published on 07/31/2026 at 16:12 | Redaktion boerse-global.de
On the surface, Nel ASA's second-quarter numbers look like a paradox. The Norwegian hydrogen company booked a net loss of NOK 189 million, its EBITDA swung to negative NOK 155 million, and revenue slipped 12 percent to NOK 153 million. Yet the stock barely blinked, closing Thursday at NOK 0.1960 — a gain of 1.77 percent on the Oslo exchange.
The market's muted reaction makes sense once the accounting noise is stripped away. A one-time settlement payment of NOK 70 million tied to an agreement with Iwatani Corporation of America distorted both the EBITDA and net figures. Remove that charge, and the underlying operating performance held roughly steady with prior quarters, edging closer to breakeven than the headline numbers suggest.
PEM Orders Drive a 224 Percent Surge
The real story of the quarter sits in the order book. Nel booked NOK 230 million in new orders during the period, a 224 percent jump year over year. Nearly all of that growth — 96 percent — came from the company's PEM electrolysis division, a clear signal that industrial customers are gravitating toward modular, scalable proton exchange membrane systems over traditional alkaline designs.
That shift is visible in the backlog. PEM orders climbed to NOK 990 million, up NOK 147 million from the first quarter, while the alkaline segment saw a quieter period for new bookings. Total backlog held firm at NOK 1.213 billion, a record level that gives management visibility into manufacturing schedules for the quarters ahead.
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The PA-Series Bet on Cost Disruption
Nel is betting its next growth chapter on a new technology platform. The PA-Series, a pressurized alkaline electrolysis system launched in May 2026, is designed to fundamentally reset the cost structure of green hydrogen production. The company says the platform cuts capital expenditures by 40 to 60 percent and shrinks the physical footprint of installations by up to 80 percent.
For large-scale projects of 25 megawatts, Nel targets turnkey costs below USD 1,450 per kilowatt — a figure that would undercut the industry standard of USD 3,000 or more by a wide margin. The European Union is backing the industrialization effort with EUR 135 million in grant funding, and production capacity at the Herøya facility in Norway is being expanded to 500 megawatts by the end of 2026, with a goal of one gigawatt by 2027.
Management expects the first commercial orders for the PA-Series in the coming months. Investors have been told that large-scale orders in the triple-digit megawatt range will be the decisive test of whether the platform can translate into sustainable profitability.
A CEO Transition Adds Another Layer
The financial picture is complicated by a leadership change in progress. CEO Håkon Volldal announced his resignation in June 2026 and will step down in January 2027 to join packaging group Elopak. He remains in place until the board names a successor, leaving the incoming chief executive to inherit a company with a full order book but a track record of uneven revenue conversion.
The balance sheet offers some cushion for the transition period. Cash reserves stood at NOK 1.328 billion at quarter-end, giving Nel room to maneuver while it searches for new leadership and scales up the PA-Series manufacturing line.
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Chart Levels in Focus
The stock has been in a recovery phase after a turbulent year. At the current price, shares trade roughly 13 to 15 percent above the 52-week low of NOK 0.1731 set in February, but remain about 45 percent below the year's high of NOK 0.3655. The 200-day moving average at NOK 0.2142 represents the next technical hurdle — a level the shares have yet to reclaim.
For now, the market appears willing to give Nel the benefit of the doubt, focusing on the order momentum and the cost-reduction potential of the PA-Series rather than the one-off charges that muddied the quarter's reported numbers.
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