Q4 2025 Nel ASA Earnings Call Transcript
Key Points
- NEL ASA (NLLSF) reported a solid order intake of NOK686 million, marking the second-best in the company's history.
- The order backlog increased to NOK1.3 billion, with approximately 70% related to PEM technology.
- The company ended the year with a strong cash balance of NOK1.6 billion, despite a slight decrease from the previous year.
- NEL ASA (NLLSF) has made significant progress in developing a new generation of pressurized alkaline electrolyzers, which promises to reduce system footprint by up to 80% and total system cost by 40% to 60%.
- The company has formed strategic partnerships, including becoming Samsung E&A's preferred global partner for hydrogen, and received significant orders from major clients like HYDS and Collins Aerospace.
- NEL ASA (NLLSF) reported a negative EBITDA of minus NOK275 million for the year, driven by reduced revenue.
- The company faced a significant impairment loss of NOK800 million due to the impact of next-generation technology on current platforms.
- Revenue for the fourth quarter declined by 20% year-on-year, primarily due to issues in the alkaline segment, including canceled contracts and customer bankruptcy.
- The company has a high inventory level due to project cancellations and bankruptcies, which has not been converted to cash.
- There is uncertainty in the market, with uneven order intake throughout the year and challenges in predicting short-term trends.
Good morning, and welcome to Nel's fourth-quarter and full year 2025 results presentation. My name is Hakon Volldal, I am the CEO. With me today, I have our CFO, Kjell Christian Bjornsen; and our Head of Investor Relations, Marketing and Communications, Wilhelm Flinder.
Today, we have the following agenda. We will skip the Nel in brief section and go straight to the fourth quarter and fiscal financial year 2025 highlights. We will have a commercial update. We will talk about our new technology that we are about to launch, and we will, as usual, end with a Q&A session.
Quarterly highlights. Revenue from contracts with customers came in at NOK330 million in the quarter. We had an EBITDA of minus NOK36 million. Solid order intake. I think it's the second best order intake in Nel's history of NOK686 million. Order backlog increased to NOK1.3 billion, and we ended the year with a cash balance of NOK1.6 billion.
In the quarter, we had several highlights. Among them, the PEM purchase orders from HyFuel and Kaupanes from hydrogen
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