Hydrogen hopeful Nel came into this Q3 2026 report with a premium story and a stretched valuation, trading at roughly 5.1x sales against lower industry and peer P/S multiples. The latest quarter put that optimism to the test. Revenue landed at NOK 111.7m while the business still reported a sizeable net loss of NOK 140.7m, and the stock closed at NOK 2.07 on 16 October after the market had time to process the update. The real flashpoint this time is the margin and profit strain sitting behind that growth narrative.
Love Nel's hydrogen story but concerned about the revenue scale and ongoing losses? Check out our screener of list of solid balance sheet and fundamentals stocks (203 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):NOK 111.7m vs. NOK 303.4m (revenue declined 63%)
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Net Loss (Q3 2026 vs. Q3 2025):loss of NOK 140.7m vs. loss of NOK 84.7m (loss widened 66%)
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Basic EPS (Q3 2026 vs. Q3 2025):loss of NOK 0.0765 per share vs. loss of NOK 0.0461 per share (per share loss increased 66%)
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EBITDA (Q3 2026 vs. Q3 2025):EBITDA loss of NOK 93m vs. EBITDA loss roughly NOK 37m (EBITDA loss increased by about NOK 56m)
If you prefer clear charts over extensive earnings tables and footnotes, view Nel's full financial picture, including a clear presentation of its ongoing losses and cash position, in our company report for Nel.
Nel's Hydrogen Tech Ambitions Face Earnings Reality Check
The bullish pitch is that Nel's technology roadmap and partnerships will turn today's pain into tomorrow's operating leverage.
"Accelerating advancements in Nel's electrolyzer technology, including a next-generation pressurized alkaline system and a new PEM stack developed with General Motors, are expected to deliver substantial reductions in both system CapEx and OpEx, which should improve gross margins and enable revenue growth as hydrogen adoption scales globally."
Q3 shows some early proof points, not payoffs. PEM revenue grew as alkaline slumped, containerized orders and MC-series wins with a US tech group and defense customers support the product story. However, EBITDA loss widened to NOK 93m and operating cash outflow reached NOK 200m. Margin relief is not visible yet.
Nel Bear Case On Demand, Funding And Competition
The darker narrative argues that weak decarbonization timing, cash burn and rivals will keep Nel stuck in loss mode.
"Despite improvements in technology and cost base reductions, the company still reports deeply negative net income (minus NOK 131 million) and continues to rely on high cash reserves for survival; if tight capital markets and higher interest rates limit future funding, Nel will remain exposed to ongoing net margin pressure and an inability to self-fund growth."
Q3 results lean toward that concern. Revenue fell sharply, EBITDA loss deepened and operating cash flow was strongly negative, even though cash stood at about NOK 1.08b. Order intake of NOK 253m and a NOK 1.314b backlog help earnings visibility. Even so, management still avoided giving guidance and flagged at risk projects.
The price and this Narrative do not agree. → Uncover what this Narrative says Nel is actually worth .
Hunt For Mispriced Earnings Stories
Nel's Q3 report shows a tension between a compelling narrative and persistent losses. The real opportunity could lie in stocks where underlying performance and valuation appear meaningfully out of sync.
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Company 1 - 20% below our estimate - targets a move from export oriented refining to integrated retail marketing, supported by capacity upgrades and energy efficiency initiatives.
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Company 2 - 41% below our estimate - replaces legacy tolling hardware with 4G GNSS units as networks retire 2G, while autonomy and defense orders influence sonar and electronics demand.
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Company 3 - 44% below our estimate - accelerates higher grade ore feed and advances new underground projects to extend mine lives and increase output from existing processing infrastructure.
Three companies from the same screener. Open the full list of 191 companies trading below our fair value estimates →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NEL.OL .
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