Nel (NEL) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached NOK 416 million, with full-year revenue at NOK 1,390 million, driven by increased PEM deliveries and licensing agreements in the alkaline segment.

• EBITDA loss improved to NOK -36 million in Q4 and NOK -173 million for the year, a significant reduction from previous years.

• Order intake for Q4 was NOK 148 million, up 13% year-over-year, with a year-end backlog of NOK 1,614 million; notable orders include Samsung C&T, Trillium, and a major US steel producer.

• Strategic workforce reduction and temporary production halt at Herøya were implemented to align capacity with market demand.

• Secured EUR 135 million in EU grants for next-gen alkaline technology and USD 29 million in US tax credits for Michigan expansion.

Financial highlights

• Q4 2024 revenue: NOK 416 million (+1% YoY); full-year: NOK 1,390 million (+3%); nearly double 2022 levels.

• Q4 EBITDA: NOK -36 million (improved from NOK -78 million); FY 2024: NOK -173 million (vs. NOK -272 million in 2023).

• Net loss for Q4: NOK -64 million (vs. NOK -50 million YoY); FY 2024 net loss: NOK -258 million (improved from NOK -566 million in FY 2023).

• Positive Q4 operating cash flow of NOK 25 million, reversing a NOK -101 million outflow in Q4 2023.

• Cash balance at year-end stood at NOK 1,876 million.

Outlook and guidance

• Order intake in 2025 expected to surpass 2024, with January already exceeding Q4 2024 intake.

• Market recovery is underway, with projects maturing toward FID and increased regulatory clarity in the EU and US.

• Cost base and investments are being reduced, with 2025 investments expected to be about 50% lower than 2024.

• Temporary shutdown of the Herøya alkaline facility in Q1 2025; duration depends on future order intake.

• 2025 anticipated to be financially challenging due to low prior order intake, but 2026 and beyond expected to improve with new orders and technology launches.