This article first appeared on GuruFocus .
-
Revenue:NOK330 million for the quarter, a 9% increase quarter-on-quarter and a 20% decline year-on-year.
-
EBITDA:Minus NOK36 million for the quarter, flat versus last year and quarter-on-quarter.
-
Order Intake:NOK686 million, the second best in Nel's history.
-
Order Backlog:Increased to NOK1.3 billion.
-
Cash Balance:Ended the year at NOK1.6 billion, down from NOK1.9 billion at the end of 2024.
-
EBIT:Negative NOK920 million for the quarter, impacted by NOK800 million in impairment losses.
-
Annual Revenue:NOK562 million for 2025, down from NOK1 billion in 2024.
-
Annual EBITDA:Negative NOK275 million for 2025, compared to a positive NOK127 million in 2024.
-
Personnel Expenses:Reduced from NOK646 million in 2024 to NOK569 million in 2025, a 12% decline.
-
Full-Time Employees:Reduced from 430 to 346 by the end of 2025.
-
Impairment Losses:NOK361 million related to atmospheric alkaline production assets and NOK439 million related to goodwill and intangible technology assets.
Release Date: February 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
NEL ASA ( NLLSF ) reported a solid order intake of NOK686 million, marking the second-best in the company's history.
-
The order backlog increased to NOK1.3 billion, with approximately 70% related to PEM technology.
-
The company ended the year with a strong cash balance of NOK1.6 billion, despite a slight decrease from the previous year.
-
NEL ASA ( NLLSF ) has made significant progress in developing a new generation of pressurized alkaline electrolyzers, which promises to reduce system footprint by up to 80% and total system cost by 40% to 60%.
-
The company has formed strategic partnerships, including becoming Samsung E&A's preferred global partner for hydrogen, and received significant orders from major clients like HYDS and Collins Aerospace.
Negative Points
-
NEL ASA ( NLLSF ) reported a negative EBITDA of minus NOK275 million for the year, driven by reduced revenue.
-
The company faced a significant impairment loss of NOK800 million due to the impact of next-generation technology on current platforms.
-
Revenue for the fourth quarter declined by 20% year-on-year, primarily due to issues in the alkaline segment, including canceled contracts and customer bankruptcy.
-
The company has a high inventory level due to project cancellations and bankruptcies, which has not been converted to cash.
-
There is uncertainty in the market, with uneven order intake throughout the year and challenges in predicting short-term trends.
Q & A Highlights
Q: You mentioned a new pressurized alkaline system with energy reduction. Can you provide more details on current energy consumption for alkaline systems? A: Current PEM and atmospheric alkaline systems typically consume 55 to 60 kilowatt hours per kilogram. Pressurized alkaline systems can exceed 60 kilowatt hours due to shunt currents. Our new technology aims to reduce this significantly, improving efficiency and minimizing degradation over time. - Hakon Volldal, CEO
Q: Will you continue selling old alkaline stacks once the new technology is available? A: We will still sell some atmospheric electrolyzers as there are specific use cases for them. However, we expect the majority of the market to prefer our new pressurized alkaline technology due to its cost-effectiveness and lower levelized cost of hydrogen. - Hakon Volldal, CEO
Q: Do you foresee consolidation in the electrolyzer industry, and how will Nel ASA fare? A: Consolidation has already begun, with some companies exiting the market. Nel aims to remain a key player, leveraging our new technologies to capture significant market share. We are prepared to adapt and lead in the evolving industry landscape. - Hakon Volldal, CEO
Q: Will the new pressurized alkaline technology compete with Chinese electrolyzers on price? A: Yes, especially outside China. Our technology reduces labor costs significantly, which is a major component of total project costs. While Chinese hardware may be cheaper, our solution offers competitive CapEx and superior OpEx, making it globally competitive. - Hakon Volldal, CEO
Q: What is the status of the Michigan plant project given the current US political climate? A: We will not proceed with building an empty factory. The current market conditions do not support the project, so we are waiting for a more favorable market environment before moving forward. - Kjell Bjornsen, CFO
Q: Can you comment on efforts to reduce large inventories? A: The large inventory is due to project cancellations and bankruptcies. We are working to convert this inventory to cash by securing new project wins and managing commitments carefully to avoid adding to the problem. - Wilhelm Flinder, Head of Investor Relations
Q: Are there large EPC tenders where Samsung and Nel are jointly bidding? A: Yes, we are currently involved in joint bids with Samsung on large EPC tenders. - Hakon Volldal, CEO
Q: Will you need PEM technology in the future with the new pressurized alkaline solution? A: Both PEM and alkaline technologies have distinct use cases. We aim to offer the best solution for each project. The new pressurized alkaline may outcompete existing technologies, but we continue to invest in R&D to ensure we provide the best options available. - Hakon Volldal, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
