Nel (NEL) Q2 2025 earnings summary

Executive summary

• Revenue fell 48% year-over-year to NOK 174 million in Q2 2025, mainly due to lower project activity, contract cancellations, and weak demand in the Alkaline segment.

• Net loss widened to NOK -131 million, with negative EBITDA of NOK 86 million, reflecting lower operating income and increased financial costs.

• Order intake dropped 74% year-over-year to NOK 71 million, and order backlog decreased 40% to NOK 1,249 million.

• Cash balance remains strong at NOK 1.9 billion, supporting ongoing technology investments and operational adjustments.

• Statkraft cancelled a 40 MW alkaline electrolyser contract; MOU signed with HydePoint for modular hydrogen systems; Samsung E&A launched a hydrogen plant using company technology.

Financial highlights

• Q2 2025 revenue: NOK 174 million (Q2 2024: 332 million); year-to-date revenue: NOK 329 million (2024: 608 million).

• EBITDA: NOK -86 million (Q2 2024: -79 million); net loss: NOK -131 million (Q2 2024: -118 million).

• Net cash flow from operating activities: NOK -53 million for the quarter.

• Cash burn rate reduced to around -NOK 120 million per quarter, down from nearly NOK 500 million in previous periods.

• Order intake: NOK 71 million (-74% y/y); order backlog: NOK 1,249 million (-40% y/y).

Outlook and guidance

• Market downturn expected to persist due to delayed government incentives, high interest rates, and increased project costs.

• Costs are expected to continue declining in the second half of 2025 due to workforce and expense reductions.

• Several target projects in the 20-200 MW range are expected to reach FID in upcoming quarters, but FIDs for large projects are being delayed.

• New technologies and US 45V hydrogen tax credit are expected to support future demand and competitiveness.

• Profitability expected once market demand and capacity utilization improve.