Norwegian hydrogen technology company Nel ASA finds itself navigating turbulent waters following the release of its third-quarter 2025 results. The company’s financial performance reveals a concerning contraction in order activity, casting a shadow over its near-term growth trajectory despite some operational improvements.
Financial Performance Highlights
Nel’s revenue for the third quarter of 2025 declined significantly, falling 17 percent to 303 million Norwegian kroner. While the top-line figure showed weakness, the company demonstrated progress on operational efficiency metrics. The EBITDA loss narrowed substantially to 37 million kroner, a marked improvement from the 90 million kroner loss recorded in the same period last year. Similarly, the net loss contracted from 115 million kroner to 85 million kroner.
The company maintains a solid liquidity position with 1.757 billion kroner in cash reserves, providing a financial buffer during this challenging market phase.
Order Book Concerns Deepen
The most alarming aspect of Nel’s quarterly report comes from its order activity. New order intake plummeted by 64 percent to just 57 million kroner, while the total order backlog shrank by 47 percent year-over-year to 984 million kroner. Even compared to the previous quarter, the order situation deteriorated by 21 percent.
This decline in orders presents a puzzling contrast to the company’s continued involvement in over 500 megawatts of FEED studies. The critical question facing management is why these preliminary studies are failing to convert into firm contracts.
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Diverging Segment Performance
An examination of Nel’s business segments reveals a mixed operational picture:
- PEM Electrolyzers: Revenue declined 15 percent, though the segment’s EBITDA loss improved to 34 million kroner from 57 million kroner in the prior year period
- Alkaline Electrolyzers: Revenue decreased 17 percent, but the segment achieved positive EBITDA of 26 million kroner, indicating operational enhancements
Strategic Partnerships and Future Outlook
Nel’s strategic alliances with industry giants General Motors, Reliance, and Samsung E&A remain intact, providing some stability amid the current challenges. However, the broader hydrogen sector continues to face headwinds including project delays and tempered demand, with Nel squarely positioned within this difficult environment.
The company’s recovery hopes appear pinned on its next-generation technology platform. CEO Håkon Volldal emphasized the dual focus on commercializing new technologies while preserving cash. The planned launch of the pressurized alkaline platform in the first half of 2026 promises substantially reduced capital investment requirements and improved energy efficiency.
Whether this forthcoming PEM solution can deliver the necessary performance improvements to revitalize order growth remains the decisive factor for the hydrogen pioneer’s future trajectory.
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