Nel Reports Q2 Revenue Miss and Wider Loss Despite Strong Order Growth

Norwegian hydrogen technology company Nel announced second-quarter financial results that fell short of analyst expectations, reporting a wider loss and a year-over-year decline in revenue. The company's performance was mixed, however, as a significant surge in new orders and a growing backlog signaled strong underlying demand for its technology.

Financial Performance

Nel reported second-quarter revenue of NOK 182 million, missing the consensus analyst estimate of NOK 186.67 million. The company's bottom line was also under pressure, with a net loss of NOK 189 million for the period.

The loss on an EBITDA basis (Earnings Before Interest, Taxes, Depreciation, and Amortization) widened to NOK 155 million. According to the company's report, this figure was impacted by a one-off NOK 70 million settlement charge related to Iwatani.

Order Growth and Business Segments

Despite the weaker-than-expected earnings, Nel demonstrated significant commercial momentum. Key highlights from the report include:

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• Order Intake: New orders jumped 224% year-over-year, reaching NOK 230 million.
• Order Backlog: The total order backlog grew to NOK 1.21 billion, a 9% increase from the first quarter.

The company noted that its Proton Exchange Membrane (PEM) division was the primary driver of this growth, accounting for 96% of the surge in order intake. Revenue in the PEM segment was largely derived from small-scale, kilowatt-type hydrogen electrolysers. Nel also commercially launched its new pressurized alkaline PA-Series platform during the quarter.

Outlook

Looking ahead, Nel did not issue specific financial guidance for the current or upcoming quarters. The strong order growth provides some visibility into future revenue, but the lack of formal guidance leaves investors to weigh the robust demand against the company's current profitability challenges.