Norwegian hydrogen technology company Nel ASA has released financial figures that underscore the contrasting forces shaping the clean energy sector. The fourth quarter of 2025 presented a familiar yet stark picture: declining revenue, a significantly widened net loss driven by substantial impairment charges, but countered by a notable surge in order intake. The core question for investors remains the sustainability of this new business momentum in a market where large-scale projects continue to face delays.
Order Intake Provides a Silver Lining
A bright spot in the report was the full-year 2025 order intake, which showed marked improvement. This positive shift stands in sharp contrast to the preceding quarter. In Q3 (results released October 29, 2025), Nel reported revenue of 303 million Norwegian kroner (down 17% year-over-year), while order intake had plummeted 64% to just 57 million NOK.
The company’s assessment of Q4 indicates that while the market for large-scale green hydrogen expansion projects remains hesitant, demand is growing for standardized, containerized PEM electrolyzer packages. Recent contract awards have bolstered the order backlog. In November, Nel secured a contract worth over $50 million for the HyFuel and Kaupanes projects, marking its largest PEM business order to date. Furthermore, on November 10, the company was selected as the technology provider for GreenH projects in Kristiansund and Slagentangen.
Financial Performance Under Pressure
Revenue for the fourth quarter came in at 330 million NOK, representing a decrease of approximately 21% from the 416 million NOK reported in the same period last year. The company’s EBITDA remained unchanged at a loss of 36 million NOK.
However, the bottom line deteriorated considerably. The net loss expanded to 870 million NOK, a substantial increase from the 64 million NOK loss recorded a year earlier. This was primarily driven by non-cash impairment charges totaling 799 million NOK. These write-downs were largely related to production assets for alkaline electrolyzers at the Herøya facility, as well as goodwill and intangible technology values within the PEM segment.
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The company’s liquidity position also eased, with cash and cash equivalents standing at 1.617 billion NOK at quarter-end, compared to 1.876 billion NOK at the close of Q4 2024.
Market Reaction and Strategic Developments
Investors appeared to look beyond the headline loss, with shares showing resilience. In late trading, the stock actually moved into positive territory, gaining 2.2% to €0.184 in Stuttgart by 18:18 CET.
The quarterly report follows a pivotal strategic decision made in December. On December 12, 2025, Nel’s board approved the industrialization of its “Next Generation Pressurized Alkaline” platform at Herøya. The plan involves constructing a factory with a capacity of up to 1 gigawatt. The project is set to receive support from the EU Innovation Fund in the form of a grant up to 135 million euros, which the company states would cover roughly 60% of the eligible costs.
For the initial 1-GW phase, Nel anticipates investments of approximately 300 million NOK before grants, allocated across 2026 and 2027. Commercial operations are scheduled to begin in the first half of 2026, with larger-scale deliveries commencing from 2027.
Looking Ahead
Market attention will now turn to upcoming corporate events. The annual general meeting is scheduled for April 10, followed by the Q1 2026 report on April 22. These events are expected to provide further clarity on the timeline for ramping up the Herøya facility and the evolution of the company’s liquidity in light of its planned capital expenditures.
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