Nel ASA, a prominent player in the hydrogen sector, is confronting a severe downturn driven by disappointing operational results and a deteriorating technical outlook for its shares. The company’s latest quarterly figures have significantly unsettled the market, painting a concerning picture for investors.
The stock’s performance has been deeply negative, registering a loss exceeding 56% over the past twelve months. This pronounced underperformance is directly linked to specific weaknesses within the company’s core operations, which were starkly highlighted in its Q2 2025 report.
Order Book and Revenue Show Significant Contraction
A central issue for the Norwegian company is a devastating collapse in new business. The quarter saw order intake plummet by a substantial 74% compared to the prior year, falling to a meager 71 million Norwegian kroner. Consequently, the total order backlog has also contracted at an alarming rate, shrinking by 40% to just 1.249 billion kroner.
Should investors sell immediately? Or is it worth buying Nel ASA?
The revenue and earnings situation is deteriorating rapidly. Income from customer contracts nosedived, recording a 48% decline to 174 million kroner. The company’s operational result, measured by EBITDA, sank further into negative territory, landing at a loss of 86 million kroner.
Key Data Points Highlight the Downturn
The current challenges can be distilled into a few critical data points:
- Substantial Share Price Decline: A loss of more than 56% on a year-over-year basis.
- Collapsing New Orders: A 74% quarterly decrease points to profound business difficulties.
- Shrinking Order Backlog: The total order book has diminished by 40% year-over-year.
- Bearish Technical Signal: The share price is trading below its 200-day moving average, a key indicator watched by traders.
Technical Analysis Reinforces Bearish Outlook
Chart analysis corroborates the precarious fundamental position. Nel ASA’s share price is currently trading beneath its 200-day moving average, a widely monitored technical level that represents the average closing price over the last 200 trading sessions. A sustained break below this line is typically interpreted by market technicians as a strong confirmation of a sustained long-term downtrend. From a charting perspective, this configuration suggests the potential for further price depreciation.
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