The market delivered a brutal verdict on Nel ASA’s first-quarter results. Despite reporting a narrower loss, shares in the Norwegian hydrogen specialist plummeted nearly 12% to €0.20. Investors focused squarely on a contracting order book, overshadowing the company’s operational progress toward profitability.
Operational metrics showed clear improvement. Revenue for the quarter dipped 5% year-over-year to NOK 148 million. However, the EBITDA loss improved to NOK 100 million, a NOK 15 million gain compared to Q1 2025. The net loss also narrowed significantly, falling from NOK 179 million to NOK 144 million. Management’s cost-cutting drive played a key role, with headcount reductions of 19-26% slashing personnel expenses by one-fifth.
A sharp decline in new business is the core concern. Order intake during the quarter was just NOK 85 million. Consequently, the total order backlog at the end of March stood at NOK 1.113 billion, marking a 24% year-over-year contraction. The performance of Nel’s two core divisions was mixed. The Alkaline division posted a 6% revenue increase, while the PEM segment saw a 14% decline. Shortly after the quarter closed, the PEM business secured a new single order worth $7 million from European firm Mesure Process, though this was not included in the reported backlog figures.
Should investors sell immediately? Or is it worth buying Nel ASA?
All attention now turns to May 6th, when Nel will unveil its new pressurized alkaline electrolyser platform. The company promises this next-generation technology could slash capital investment costs by 40-60% and reduce operating expenses by 10-20%. A final investment decision has already been made for a production line with up to 1 GW of capacity at the Herøya site in Norway, backed by EU funding of up to €135 million.
Financially, Nel remains well-capitalized to fund its ambitions. The company ended the quarter with a robust NOK 1.443 billion in liquid assets. An additional EU grant of €11 million is expected in Q2. Shareholders recently approved a shift in executive compensation, replacing a stock option plan with a Performance-Share-Unit program tied to specific targets and multi-year vesting periods, with annual CEO grants capped at 50% of base salary.
Trading just above its 200-day moving average, the stock remains 18% below its July 2025 52-week high. With a 30-day volatility reading above 60%, investors are bracing for further turbulence. The upcoming technology launch is poised as the next potential catalyst, with the market keenly watching to see if it can reignite order momentum ahead of the half-year report on July 15th.
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