Nel ASA's Court Settlement Overshadows a Record-Breaking Quarter
Published on 08/05/2026 at 10:20 | Redaktion boerse-global.de
The Norwegian electrolyser maker Nel ASA finds itself in an unusual position: its order book is expanding at its fastest pace in years, yet its latest earnings report is weighed down by a legal bill rather than operational weakness.
New orders reached 230 million Norwegian kroner in the second quarter — more than triple the year-earlier figure — with the PEM division accounting for roughly 96 percent of that intake. That surge lifted the company's total backlog to 1.213 billion NOK, providing production visibility well into 2027.
A One-Off Hit Distorts the Bottom Line
The headline numbers tell a harsher story. Nel reported an EBITDA loss of 155 million NOK for the quarter, dragged down by a 70 million NOK settlement payment to Iwatani Corporation of America that resolves a long-running legal dispute. Strip out that exceptional charge, and the underlying business performed broadly in line with recent quarters.
The settlement underscores a recurring theme for Nel: its technology is finding buyers, but profitability remains elusive as the company scales up manufacturing.
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Modular Machines Replace Megaprojects
Nel's commercial strategy has shifted decisively since the June 2024 spin-off of its refuelling division, Cavendish Hydrogen. The company now positions itself purely as an electrolyser manufacturer, with the PA-Series — a pressurised alkaline platform launched in May 2026 — at the centre of its pitch.
The economics are straightforward: Nel targets turnkey system costs below $1,450 per kilowatt for 25-megawatt installations, a fraction of the $3,000-plus per kilowatt that comparable large-scale projects typically command. The modular design aims to cut complexity and accelerate project timelines, bringing green hydrogen closer to price parity with fossil fuels — the threshold that has historically given industrial customers pause.
Brussels Decision Looms as a Catalyst
The company is also watching Brussels closely. In early August 2026, the European Commission is set to announce results from the "HORIZON-JU-CLEANH2-2026" funding programme, for which 170 projects have applied for support covering green hydrogen production and storage. A successful bid involving Nel technology or a partner could provide a meaningful boost to the order pipeline.
That would build on existing support: the EU Innovation Fund has already committed up to €135 million to Nel for industrialising its new pressurised alkaline platform at the Herøya facility in Norway.
Leadership Vacancy Adds Uncertainty
The operational momentum comes with a governance question mark. CEO Håkon Volldal announced his resignation in mid-June 2026 and is currently serving a six-month transition period while the board searches for a successor. For institutional investors, the leadership vacuum adds an unwelcome layer of uncertainty — particularly as the company's strategic pivot to pure-play electrolysis could be revisited under new management.
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Market Sentiment Remains Cautious
The share price reflects the mixed picture. The stock closed at €0.1982 on Tuesday, up 1.23 percent on the day, and has gained 4.98 percent since the start of the year. Yet it still trades nearly 46 percent below its May high of €0.3655, and the 14-day relative strength index of 42 points to neutral momentum rather than conviction.
Liquidity, at least, is not a concern. Nel ended the quarter with approximately 1.328 billion NOK in cash — enough to fund the technology roadmap and the production ramp-up at Herøya through the end of 2026, and to support deliveries into 2027.
The broader sector backdrop remains challenging: global oil majors are deprioritising green hydrogen projects, leaving Nel to generate its own growth signals through the PA-Series and the upcoming EU decision. Whoever takes the helm will inherit a full order book — and the task of converting it into sustainable profits.
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