Nel ASA Clears a Legal Hurdle but Faces a Steeper Climb: Leadership Gap and Order Drought Test the July 15 Report
Published on 07/08/2026 at 09:26 | Redaktion boerse-global.de
Nel ASA has finally drawn a line under a year-long legal dispute, yet the Oslo-based electrolyser maker’s shares remain pinned near lows that suggest investors are looking past the news. The company settled its lawsuit with Iwatani Corporation of America in June, agreeing to pay $7.5 million, with its former subsidiary Cavendish Hydrogen contributing an additional sum. The stock closed Tuesday at €0.21 — a far cry from its spring highs and barely budging on the settlement announcement.
The dispute, which dated back to February 2024 and centred on hydrogen fuelling stations in California, had been a persistent distraction. Nel and Cavendish both stressed that the commercial relationship with Iwatani can continue, and the accord eliminates future legal costs and reduces US litigation exposure. But the market’s muted response underscores a stark reality: the company’s deeper ailments have little to do with the courtroom.
Just last month, Nel rolled out a new generation of pressurised alkaline electrolysers, a technological upgrade management says will simplify project design, lower costs and improve efficiency. For standard projects, the Norwegians target turnkey costs of less than $1,450 per kilowatt. The European Union has backed the effort with a grant of up to €135 million for the industrial expansion of manufacturing capacity at Herøya. Despite the breakthrough, the shares lost roughly a quarter of their value in the 30 days through Tuesday — a signal that technical progress alone is not enough to shift sentiment.
The real drag lies in the order book. Nel’s intake during the first quarter slumped to just 85 million Norwegian kroner, pushing the backlog down to 1.113 billion kroner — a 24% drop from a year earlier. Within the PEM segment, the backlog contracted to 843 million kroner, 35 million less than at the end of the fourth quarter of 2025. Management acknowledged the weakness in the earnings call without sugar-coating it, and the trend makes clear how desperately new contracts are needed to keep factory utilisation healthy.
Should investors sell immediately? Or is it worth buying Nel ASA?
Compounding the operational strain is a leadership vacuum. CEO HĂĄkon Volldal, who has run Nel since mid-2022, is leaving to join packaging group Elopak. The transition must be completed by early January 2027 at the latest, and the board is searching for a successor. That uncertainty weighs on sentiment even after the legal cloud lifted. A new chief executive would benefit from a clean legal slate, but the search process risks dragging on without a clear outcome.
On the balance sheet, Nel still has some ammunition. Cash and equivalents stood at roughly 1.4 billion kroner at the end of the first quarter, providing a buffer while the company hunts for fresh orders. Management has pointed to early signs of a recovery in PEM: a $7 million order came in after the quarter closed, and Volldal said he expects additional bookings before the first half ends. The new alkaline electrolyser launch also aims to open up simpler, more scalable projects.
Technically, the stock is in fragile territory. It trades 43% below its 52-week high and 22% below its 50-day moving average. The 200-day line sits just 3.3% above the current price — a level that has repeatedly acted as support in the past. The relative strength index, at 36.5, is approaching oversold conditions, which could offer a bounce if buying interest returns. But the 30-day annualised volatility of 66% underscores how violently the stock can swing in either direction.
Nel ASA at a turning point? This analysis reveals what investors need to know now.
For a sustained recovery, Nel needs more than a settlement and a product update. It needs orders to accelerate and a CEO succession plan that instils confidence. The next concrete test arrives on July 15, when the company publishes its half-year report for 2026. That release will reveal whether the promised PEM orders materialised and whether the backlog has stabilised. Investors will also be watching for any update on the leadership search — arguably as critical as the financial numbers themselves.
If the cash holds and the order pipeline improves, the stock could stabilise around the 200-day average. But if the order drought continues and the CEO search remains unresolved, the shares are vulnerable to another leg lower. The settlement has removed one distraction; the harder work starts now.
Ad
Nel ASA Stock: New Analysis - 8 July
Fresh Nel ASA information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
