Nel ASA's Order Book Swells to NOK 1.314 Billion While Quarterly Revenue Drops 63%
Published on 10/30/2026 at 03:21 | Editorial boerse-global.de
Nel ASA is heading into a leadership handover with two numbers pulling in opposite directions. Orders are pouring in; revenue is collapsing. The hydrogen equipment maker's third-quarter 2026 report, released on 15 October, showed revenue from customer contracts falling 63% year on year to NOK 112 million, a decline management pinned on lower activity in the alkaline segment. Over the same three months, order intake climbed 339% to NOK 253 million.
That divergence frames the central question for anyone weighing the stock: does a fuller order book justify confidence in a turnaround before the top line has shown any sign of one? The backlog stood at NOK 1.314 million at quarter-end, 34% above the year-earlier level. It represents potential business, not booked results — a distinction that separates the optimistic reading from the cautious one.
PEM Gains, Alkaline Drags
The growth is concentrated in one part of the portfolio. PEM revenue rose 65% in the quarter, a bright spot against the weakness in alkaline activity that Nel blamed for the group's revenue plunge. If the PEM momentum holds and the alkaline slump fades, sales wins and revenue could start moving in the same direction again — a convergence that would carry more weight than another isolated jump in orders.
A US contract announced roughly two weeks ago offers a concrete marker for future business. Nel Hydrogen US secured an order worth about USD 12 million from an unnamed American technology company, covering several containerised PEM electrolysers plus associated services, with delivery expected in 2027. The timing matters: the order is a foothold in future revenue, not evidence of a near-term boost.
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Separately, Nel signed a letter of intent with Rheinmetall about two weeks ago to explore cooperation on modular, decentralised production of synthetic fuels, initially for Norway, with Nel contributing its electrolyser technology. The two sides will examine technical and economic feasibility and possible pilot projects. That agreement is non-binding and should not be read as a secured order — any follow-through depends on feasibility studies and mutual agreement.
Losses Keep Optimism in Check
The income statement tempers the sales narrative. EBITDA came in at NOK -93 million and the net loss at NOK -141 million, so the stronger order intake has yet to translate into a positive result. Cash and liquid assets stood at NOK 1.078 million at quarter-end — a buffer for assessing the financial starting position, though no substitute for an improvement in operating profit. A quarterly loss does not, conversely, imply a matching cash outflow.
The bear case is straightforward: if the gap between orders and current business persists, faster PEM growth may not be enough to steady group revenue. Even successful delivery does not settle every earnings question. For a durable recovery, the improved activity would eventually have to show up in the result, and the reported order figures do not yet demonstrate that step.
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A New Hand on the Wheel
The next fixed date on the calendar is 1 November 2026, when finance chief Kjell Christian Bjørnsen takes interim charge of the company, as announced about a week ago. Torbjørn Berg, previously VP Finance, steps up as interim finance chief. Morten Holum has been named to succeed Håkon Volldal as CEO and is due to start no later than 1 May 2027.
The transition is an organisational milestone, not proof of a business turnaround. What investors will be watching is operational: whether the enlarged backlog can be converted into dependable revenue and, ultimately, a better earnings picture. Further order wins could brighten the outlook, but they would not by themselves erase the operating weakness. The yardstick stays the same — orders must become deliveries, and deliveries must become income.
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