Nel ASA Shares Face Persistent Headwinds Amid Sector Challenges

The stock of Norwegian hydrogen technology company Nel ASA continues to struggle within a weak sector environment. Trading near its annual low, the equity is being weighed down by declining order intake and mixed financial results. Concurrently, the firm is advancing significant investments in its next-generation technology platform.

The company's most recent quarterly update for Q3 2025 presented contrasting signals. On the revenue front, Nel reported 303 million Norwegian Kroner (NOK), marking a 17% decrease from the 366 million NOK recorded in the same period the previous year.

However, the bottom-line figures showed some improvement, indicating tighter cost management:

• EBITDA for Q3 2025: -37 million NOK (Q3 2024: -90 million NOK)
• Net Result for Q3 2025: -85 million NOK (Q3 2024: -115 million NOK)

A primary concern for investors remains the substantial contraction in the order backlog. By the quarter's end, the order intake stood at 984 million NOK, approximately 47% lower than the year-earlier figure. This reduced visibility on future revenue streams is a key focus for the market.

Share Price Reflects Sector Skepticism

In current trading, Nel's share price hovers around €0.19, equivalent to 2.24 NOK. This places it just above its 52-week low of roughly €0.17 and within a narrow trading range. The stock has undergone a significant correction from its annual high of approximately €0.33, reflecting the persistent skepticism surrounding the hydrogen sector and the company's specific operational hurdles.

Should investors sell immediately? Or is it worth buying Nel ASA?

Key trading metrics include:

• Current Share Price: ~€0.191 / 2.24 NOK
• Daily Change: Approximately -0.2%
• 52-Week Range: €0.166 – €0.334
• Expected Q4 2025 Report Date: 26 February 2026

Strategic Investment in Next-Gen Technology

On the operational front, Nel is pushing forward with the expansion of its technology platform. In December 2025, the company's board made the Final Investment Decision (FID) to expand its Herøya facility in Norway. This strategic move aims to industrialize its next-generation pressurized alkaline electrolyzer technology and scale production capacity toward 1 GW.

The objective of this capital expenditure is to reduce the Levelized Cost of Hydrogen (LCOH) and enhance competitiveness. The commercial launch of the new platform is scheduled for the first half of 2026, with high-volume deliveries expected to follow in 2027. This ties the current phase of earnings improvement to a clear technological roadmap for the coming years.

Market Outlook and Technical Levels

Investor attention is now shifting toward the fourth-quarter results, anticipated for release on 26 February 2026. The market will likely scrutinize whether the order backlog can stabilize and if the trajectory toward EBITDA breakeven continues.

In the near term, the share price remains sensitive to broader sentiment in the hydrogen sector and updates on the Herøya expansion progress. From a technical analysis perspective, the area around the 52-week low represents a crucial support level. A sustained hold above this mark could allow the stock to await more stable fundamental improvements. Conversely, a decisive break below it would confirm the existing downtrend and likely invite further selling pressure.