The Norwegian electrolyser maker Nel ASA is living a contradiction. Its order intake just exploded by 224 percent, yet its income statement keeps bleeding red, its cash pile is shrinking, and the search for a new chief executive remains unresolved. For investors, the second quarter of 2026 offered a split screen: momentum on the demand side, erosion on the balance sheet.
A Legal Settlement and a Shrinking Top Line
When Nel reported second-quarter results on 15 July, the headline numbers were grim. Revenue from customer contracts fell 12 percent year on year to 153 million Norwegian kroner, while total income slipped to 182 million kroner from 215 million a year earlier. The net loss widened to 189 million kroner from 131 million kroner, driven by an operating loss of 205 million kroner.
Part of that damage traces back to a one-off item: a 70 million kroner settlement payment tied to a legal dispute with Iwatani Corporation of America, resolved in early June. Strip that out, and adjusted EBITDA held steady against the prior-year period — a detail that offers at least some comfort beneath the surface-level deterioration.
Orders Surge, But Revenue Lags
The brighter story sits in the order book. New orders climbed to 230 million kroner in the second quarter, a 224 percent jump from the same period last year, with PEM electrolyser equipment accounting for 96 percent of the intake. The backlog swelled 9 percent quarter on quarter to 1.213 billion kroner.
Yet there is an uncomfortable gap between bookings and billing. JPMorgan analyst Patrick Jones captured that tension on Wednesday when he cut his price target on Nel to 1.80 kroner from 2.90 kroner, keeping a “Hold” rating. His rationale: near-term business pressure persists even as order dynamics improve. The market seemed to agree — the stock traded at 0.1970 euro in German markets on Thursday, roughly 46 percent below its 52-week high, with a monthly decline of just over 5 percent.
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Cash Is Burning Faster Than Orders Convert
The liquidity position adds another layer of caution. Nel ended the quarter with 1.328 billion kroner in cash, down sharply from 1.928 billion kroner a year earlier. That buffer still provides runway during the transition, but the trajectory is unmistakable — and it raises the stakes on how quickly the order surge translates into actual revenue.
The broader sector is not helping. BP said on Monday it would scale back its hydrogen ambitions, a move widely read as headwind for the entire value chain, including equipment suppliers like Nel. The stock fell 6.03 percent that day to 2.18 kroner, erasing a 9.02 percent gain from the prior session, after slipping below its 38-day moving average. One automated analysis service did upgrade the stock from “Sell” to “Hold/Accumulate,” though such technical signals carry limited weight against the fundamental picture.
A CEO Exit and a New Technology Bet
Leadership uncertainty compounds the financial strain. Håkon Volldal announced on 15 June that he would step down as President and CEO to join packaging group Elopak, remaining in his role through a six-month notice period until a successor is found. The board has launched a recruitment process and insists the strategic direction will not change — but until a name is announced, the vacancy remains a live risk factor for shareholders.
On the technology front, Nel is betting on its next-generation pressurized alkaline platform, commercially launched on 6 May. Early test results are reportedly encouraging, and the company claims the new design cuts system footprint by 80 percent and investment costs by 40 to 60 percent. Management expects initial orders in the coming months and aims for 500 megawatts of production capacity by the end of 2026. The partnership with Reliance Industries in India — where Reliance is building an electrolyser gigafactory in Jamnagar under a Nel technology license — extends the company’s reach without requiring Nel to operate the plant itself.
The Next Checkpoint
The stock closed at 0.1962 euro, down 46.32 percent from its May peak of 0.3655 euro, with a 5.45 percent decline over the past 30 days. Nel has scheduled its third-quarter report for 21 October — the moment when investors will learn whether the order boom has finally started to flow through to the revenue line. Until then, the leadership question and the cash burn rate will remain the two issues most likely to move the shares.
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