The Norwegian electrolyser manufacturer Nel ASA has delivered a mixed set of first-quarter results for 2026, with the headline numbers masking a business that is simultaneously contracting in some areas and planting seeds for future growth in others.
Revenue for the period came in at 148 million Norwegian kroner (approximately €13.6 million), a decline of 5% year-on-year. The EBITDA loss narrowed to minus 100 million kroner (roughly minus €9.2 million), an improvement of 15 million kroner compared to the first quarter of 2025. The net loss stood at €13.2 million. The company has also been aggressively cutting costs, having reduced its headcount by 26% from its peak employment level.
The two technology segments are pulling in opposite directions. The alkaline electrolysis division posted a 6% revenue increase and improved its EBITDA by 35 million kroner year-on-year. The PEM segment, by contrast, saw revenues fall by 14%. This divergence underscores the strategic challenge facing management as they navigate a period of transition.
Order Book Takes a Hit
The most alarming figure in the quarterly report was the order intake, which collapsed by 73% to just 85 million kroner (€7.8 million). The order backlog consequently shrank by 24% to 1.113 billion kroner (€102 million). This sharp deterioration raises questions about whether the current quarter represents a one-off anomaly or the beginning of a more sustained demand weakness.
Nel’s cash position provides a buffer. The company holds 1.443 billion kroner (€129 million) in cash, supplemented by an EU grant of €11 million expected in the second quarter. This liquidity should allow Nel to bridge the gap until its next-generation technology reaches commercial maturity.
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Post-Quarter Developments Offer Hope
Since the quarter closed, Nel has signed two purchase orders in the PEM space, each valued at approximately $7 million. One order comes from Mesure Process, a subsidiary of Synqo Energies, for a European project. The other is for a facility in the United States, with the electrolysers to be manufactured at Nel’s plant in Wallingford, Connecticut. Both installations are scheduled to begin operations in the first half of 2027.
The US order is particularly significant as it represents Nel’s first delivery to a public utility. The Douglas County Public Utility District in Washington state has ordered PEM electrolysers to utilise surplus hydropower and stabilise the local electricity grid. CEO Håkon Volldal expressed confidence that additional PEM orders will materialise before the end of the first half of the year.
Betting on Next-Generation Technology
Nel is pinning its long-term hopes on a new PEM electrolyser generation slated for launch in 2028 or 2029, with a target of reducing stack costs by 70%. In the nearer term, the company plans to unveil a new pressurised alkaline electrolysis platform on 6 May. Nel describes the technology as groundbreaking and is already in discussions with potential customers about concrete deliveries.
The company has also expanded its geographic footprint, opening its first hydrogen facility in South Korea. This diversification reflects Nel’s strategy of building a global presence even as its home market faces headwinds.
The stock currently trades at around €0.21, having gained nearly 7% since the start of the year but remaining roughly 16% below its 52-week high of €0.25. The half-year report will provide the first real test of whether the post-quarter order flow and the May product launch can reverse the downward trend in the order book.
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