Nel ASA, the Norwegian hydrogen technology company, finds itself navigating turbulent market conditions as its latest quarterly results reveal a complex financial landscape. The third-quarter figures present a tale of two narratives: substantial improvements in profitability stand in stark contrast to significant declines in both revenue and new order intake.
Financial Performance: A Mixed Picture
The company reported revenues of 303 million Norwegian kroner, representing a 17 percent year-over-year decrease. However, a sequential comparison reveals a more encouraging trend, with sales climbing 74 percent from the previous quarter. On the profitability front, Nel demonstrated marked improvement, with EBITDA reaching negative 37 million NOK compared to negative 90 million NOK during the same period last year. The net loss also narrowed considerably, shrinking from 115 million to 85 million NOK year-over-year.
Order Book Contraction Raises Concerns
Perhaps the most concerning aspect of the report was the dramatic contraction in new business. Order intake plummeted to just 57 million NOK, representing a 64 percent decline compared to the previous year. The company’s order backlog similarly diminished, contracting 47 percent over twelve months to stand at 984 million NOK. These figures reflect the cautious investment sentiment currently prevailing within the green hydrogen sector.
Despite these operational headwinds, Nel maintains a solid financial foundation. The company possesses liquid assets of approximately 1.8 billion NOK, providing a buffer against current market challenges. Nevertheless, investors on the Oslo Stock Exchange responded negatively to the mixed report, sending shares lower.
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Regulatory Landscape Impedes Growth
Company leadership pointed to a “challenging macroeconomic environment” and an electrolyzer market developing more slowly than anticipated. Particularly stringent regulatory barriers across European markets are currently hampering the advancement of hydrogen production initiatives.
In response to these market dynamics, Nel is intensifying its focus on technological innovation. The company is developing a new pressurized alkaline solution scheduled for market release in the first half of 2026, which aims to substantially reduce hydrogen project costs. Simultaneously, Nel is expanding its collaborative efforts with industrial partners including General Motors, Reliance, and Samsung E&A.
Future Prospects and Market Sentiment
Management maintains an optimistic outlook despite the sluggish order intake. They note that Front-End Engineering and Design (FEED) activities continue at relatively robust levels, suggesting potential future orders should market conditions improve.
Market analysts continue monitoring Nel’s progress, with Kepler Cheuvreux recently raising its price target for the company’s shares. The investment community now awaits signals of market recovery and the successful implementation of new technologies in 2026. The company’s next quarterly report is scheduled for release on March 4, 2026.
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