Green Hydrogen: Nel ASA Posts Record Order Intake Despite Q4 Losses

When Nel ASA announced its Q4 2025 results, it offered up what felt like a financial rollercoaster. Revenue slipped 20% year-on-year to NOK 330 million, and a net loss of NOK 870 million—thanks largely to NOK 799 million in impairment charges—looked like a bump in the road. Yet demand couldn’t be higher: order intake skyrocketed 364% to NOK 686 million, and the backlog swelled to NOK 1,319 million, a 34% jump from Q3. It’s the perfect snapshot of the tension between short-term headwinds and long-term promise in the green hydrogen and hydrogen production space.

Q4 Performance at a Glance

Here’s the quarter’s quick stat line, laying out the highs and lows:

• Revenue: NOK 330 million, down 20% YoY amid project delays.
• Net loss: NOK 870 million, including NOK 799 million in one-off impairments.
• Order intake: NOK 686 million, up a staggering 364% YoY.
• Order backlog: NOK 1,319 million, marking a 34% increase since Q3.
• EBITDA: NOK –36 million, relatively flat compared to last year.
• Cash balance: NOK 1,617 million, down from NOK 1,876 million at end-2024.

Technical Mix: PEM vs. Alkaline Electrolysers

Zooming in on that backlog, there’s a clear two-to-one split between the cutting-edge PEM Electrolyser and the more established Alkaline Electrolyser systems. Here are the Q4 highlights:

• PEM Electrolyser: Backlog of NOK 878 million; Q4 EBITDA loss of NOK 35 million. This containerized Proton Exchange Membrane platform is front and center in Nel’s next-gen electrolysis plans, promising faster ramp-up and higher efficiencies.
• Alkaline Electrolyser: Revenue slid 33% YoY, though EBITDA improved to NOK 36 million. Backlog at NOK 440 million, but it absorbed a NOK 361 million impairment as Nel shifts gears away from its first-generation assets.

Pivot and Cash Cushion

CEO Håkon Volldal has framed 2025 as a pivotal year. Despite revenue softness and delayed investments, he’s bullish on deeper partnerships, tech upgrades, and the clear path toward cleaner, more cost-effective platforms. Those NOK 799 million in write-downs? They’re a strategic move to double down on higher-margin electrolyser tech. And with about NOK 1.6 billion in the bank, Nel has the cash runway to fine-tune its cost structure, boost R&D, and optimize manufacturing—critical steps on the road to sustainable growth.

Historical Context and Full-Year Review

Nel’s journey stretches back to 1927, when it was known as Norsk Elektro Metall. Today, it’s a global powerhouse in hydrogen electrolysers, trading on the Oslo Stock Exchange (OSE: NEL). Yet, 2025 had its share of turbulence. Full-year revenue fell 31% to NOK 963 million (down from NOK 1,390 million in 2024) as some customers hit pause on projects and tightened spending. Net losses widened to NOK 1,265 million (versus NOK 244 million in 2024), and full-year EBITDA swung to a NOK 275 million loss (from NOK 173 million). Still, with a record order book and strategic impairments out of the way, Nel seems poised for its next chapter in the world of sustainable energy.

Balancing Headwinds and Market Demand

Investor interest in industrial decarbonization and green hydrogen is off the charts, driven by policy support and major capital flows into clean energy projects. That’s created a bit of a supply pinch for electrolysers. Nel did face some delivery unevenness and project setbacks in 2025, but that blockbuster Q4 order intake proves one thing: the market’s thirst for zero-emission hydrogen capacity isn’t going anywhere.

Financial Resilience and Cost Controls

Beyond the headline-grabbing impairments, Nel’s management team has been laser-focused on cost controls and capacity tweaks to slow the cash burn. Sure, cash dipped from NOK 1,876 million to NOK 1,617 million year-over-year, but even after that, Nel’s balance sheet remains among the strongest in the electrolyser space. The company’s goal? Hit break-even on an EBITDA basis once those higher-margin systems kick into full gear and project timelines firm up.

What to Watch Next

All eyes will be on how swiftly the NOK 1.3 billion backlog converts into recognized revenue—especially the premium PEM Electrolyser orders. Execution is everything: getting projects out the door on schedule, keeping costs in check during the transition to advanced platforms, and winning big in upcoming green hydrogen tenders. Nel’s performance through 2026 will be a strong indicator of whether its strategic pivots can deliver real, sustainable profit growth.

At the end of the day, Nel ASA’s Q4 results remind us that the path to zero emissions isn’t a straight line. You’ll see accounting blips and project snags, but when global demand for clean hydrogen keeps climbing, the upside potential is huge. If Nel can manage its cash, nail project execution, and scale up its next-gen electrolysers, it may well emerge as one of the big winners in the green hydrogen revolution.