Nel (NEL) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NOK 303 million, down 17% year-over-year but up 74% sequentially, reflecting a challenging market and milestone revenue recognition.

• EBITDA improved to NOK -37 million from NOK -90 million in Q3 2024, mainly due to cost control and better execution, with net loss narrowing to NOK -85 million.

• Order intake was NOK 57 million, down 64% year-over-year, with a backlog of NOK 984 million, split between alkaline and PEM segments.

• Cash balance at quarter end was NOK 1,757 million, with robust reserves despite negative operating cash flow and a decline from last year.

• Personnel expenses year-to-date decreased by NOK 60 million, with headcount reduced and cost controls implemented.

Financial highlights

• Revenue from contracts: NOK 303 million, down 17% year-over-year, up 74% quarter-on-quarter.

• EBITDA loss narrowed to NOK -37 million from NOK -90 million last year.

• Net loss for the quarter was NOK -85 million, compared to NOK -115 million in Q3 2024.

• Net cash flow from operating activities was NOK -132 million, impacted by working capital changes.

• Cash and cash equivalents at quarter-end were NOK 1,757 million.

Outlook and guidance

• Pipeline remains large and growing, but final investment decisions for several projects are delayed due to market and regulatory uncertainties.

• Several target projects in the 20-150 MW range are expected to take FID in the coming quarters, with order intake expected to remain volatile.

• New pressurized alkaline system to be commercially launched in 2026, with deliveries at scale expected in 2027.

• Investments expected to decrease by 50% in 2025 compared to 2024; cost base and capacity utilization adjusted.

• Profitability expected once market conditions recover and growth resumes.