NEL ASA (D7G) Q3 2026 Earnings Report

The call presented a mixed picture. Commercial momentum, PEM revenue growth, order intake, backlog expansion, defense-related wins, partnerships, and technology-development milestones were strong positives. However, these were offset by a 63% group revenue decline, a 91% alkaline revenue decline, negative EBITDA and operating cash flow, continued HYDS project delays, and the broader history of cancellations and market headwinds. The overall tone was cautiously constructive about Nel's future technology and market position, but current financial performance remained challenging.

Management said smaller projects can be in the 1 to 40 megawatt range, while larger projects in the 50 to 150 megawatt range are expected to take final investment decision over the next quarters; initial build-out phases often start in the 10- to 50-megawatt range. The pressurized alkaline platform remains in advanced customer discussions, with a few more months at least before the first customers announce that they will test the concept, while the Compass H2-A+ is a 100 megawatt system concept. Full stack testing of the next-generation PEM technology is expected to commence in 2027, with design goals of more than 1,200 kilos per day, moving from a 1.25 megawatt stack to a 3 megawatt stack, a 70% cost reduction, 48 kilowatt hours per kilogram of hydrogen at stack level compared to 52, 53 on the current platform, close to a 10% improvement in efficiency, and a 50% reduction in components used; one HYDS project may not come as a delivery in 2027.