Nel revenues drops 31% as losses more than treble in ‘demanding’ 2025

The company’s operating loss grew from NOK 389m ($40.7m) to NOK 1.365bn ($142.9m), with its revenues falling to NOK 963m ($100.8m). EBITDA also widened from NOK –173m (–$18.1m) to NOK –275m (–$28.8m).

Despite the mounting losses, the company’s cash balance remained relatively stable, dropping to NOK 1.6bn ($167m) from NOK 1.87bn ($195.7m).

Additionally, its order intake grew to a level comparable with its 2023 results, increasing from NOK 977m ($102m) in 2024 to NOK 1.13bn ($118m). This left its order backlog standing at NOK 1.32bn ($138m) compared to NOK 1.6bn ($167m) in 2024.

However, Nel said delays in government incentives, high interest rates, and high construction costs led to “lower than expected” order intake.

This saw the OEM halt production of its alkaline electrolyser stacks at its flagship plant in Norway, along with other “steady, disciplined work” to reduce operating costs. The company’s workforce shrank by 15% to 346.

“As a result of lower activity, Nel adjusted its organisational and production capacity to meet expected market growth,” the full-year report said.

Its alkaline segment logged revenues of NOK 562m ($58.8m), down 44% on 2024, with order backlog shrinking 83% to NOK 99m ($10.4m). This came after Nel mothballed production of the technology at its flagship 1GW electrolyser plant in Herøya.

PEM fared better. The technology saw sales increase 5% to NOK 401m ($41.9m), with order intake increasing 157% to NOK 1.03bn ($107.8m). Backlog also grew 171% to NOK 878m ($91.9m).

More than NOK 1bn ($104.9m) was written off through depreciation, amortisation and impairments.

Of this, NOK 361m ($37.8m) is related to the new 1GW production line at Herøya for next-generation pressurised alkaline electrolysers. A further NOK 439m ($46m) stemmed from goodwill and intangible assets tied to the acquisition of its PEM division.

Commenting on the tough results, CEO Häkon Volldal said 2025 was “far from a lost year.”

“In many respects, it became a turning point,” he said. “Our financial performance in 2025 reflected the market we operate in…2025 was a year with steady, disciplined work. Much of it invisible. Much of it not fun. But all necessary for long-term success.”