
Nel’s Q1 revenue down 44% on lower alkaline electrolyser demand
Norwegian electrolyser manufacturer Nel posted on Wednesday a 44% on-year decline in revenue during the first quarter of 2025, on lower alkaline electrolyser orders.
Revenue from contracts with customers fell to NOK 155 million ($14.9m), compared with NOK 276m in Q1 2024. Order intake in the quarter dropped 22% to NOK 311m, despite a record-high quarterly order intake for the proton exchange membrane (PEM) division.
As a result of lower order intake and order backlog, which declined 31% on-year, Nel’s net income turned red into a NOK 179m net loss. A year earlier, the company had posted a net profit of NOK 39m, Kallanish notes.
The company explains that final investment decisions on large target customer projects were pushed to the coming quarters and existing orders were delayed or became at risk of cancellation. Against this background, it announced cost reduction and capacity adjustment measures, which led to the temporary production halt at its Herøya plant, in Norway. This, in turn, affected the alkaline division performance and overall financial performance.
Yet, chief executive Håkon Volldal highlights that the company continues to make “steady operational progress where it matters the most.” He says costs are coming down, technology development is advancing and Nel’s strategic focus remains “sharp.”
“Despite external factors impacting the overall results, we have built a strong foundation with a real production capacity already in place, a continued strong balance sheet, and limited need for additional growth capex,” adds Volldal. “With a solid cash position, proven production capabilities, and a portfolio of disruptive technologies under development, we are uniquely positioned in the market.”
Revenue from its PEM business increased 64% y-o-y, driven by containerised electrolysers. The segment’s order intake rose to NOK 290m, while order backlog increased to NOK 495m. These include a 5-megawatt electrolyser for a US steel producer, and a 2.5-MW unit for the Aberdeen Hydrogen Hub in Scotland.
Management said in a presentation that PEM product and project margins are in general “higher” than previous quarters due to “more favourable terms and conditions and better execution.”
The company had a cash balance of NOK 2.06 billion at the end of the quarter, and expects a CAPEX of around NOK 350m, which equates to the private placement and collaboration agreement it signed with Samsung E&A.
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