Nel : Quarterly presentation (Q1 presentation 2025)

Published on 04/30/2025 at 02:09

First quarter 2025 results presentation

30 April 2025

Nel in brief
Q1 2025 highlights
Commercial update
Technology update
Partnership update
QCA
©2025 Nel - All rights reserved

NEL IN BRIEF
A fully dedicated electrolyser technology company
Listed on the Oslo Stock Exchange
(NEL.OSE) since 2014
Leading pure-play electrolyser manufacturer with >7 000 stacks delivered to more than 80 countries since 1927
~1 GW of ALK manufacturing capacity
(Norway)
~500 MW of PEM manufacturing capacity (USA)
394
employees

Investing heavily in R&D to develop next-generation alkaline
and PEM technologies
Global sales and office network
Preferred partner with industry leaders
NOK 2.1 billion in
cash reserves

Nel's value proposition
Unrivalled track record
- Decades of experience
- Large installed base
  Technology leadership
- Multiple technology platforms (AWE+PEM)
- Guaranteed and proven performance
- Game-changing next-generation solutions
  Cost and scale leadership
- Front-runner in cost reductions
- Market leading production capabilities

Q1 2025 highlights

Quarterly highlights

Financial results and financing

Revenue from contracts with customers

NOK 155 million

EBITDA

NOK -115 million

Order intake

NOK 311 million

Order backlog

NOK 1 460 million

Key highlights in Q1 2025

Received a purchase order for about USD 7 million from steel producer in the US
Received a purchase order for one 2.5 containerized PEM unit in Scotland
Received a purchase order for about USD 6 million from Collins Aerospace to be used by the U.S. Navy
Awarded additional USD 29 million in tax credits from the 48C program funded by the
Inflation Reduction Act for manufacturing expansion in Michigan, US.

Signed collaboration agreement and conducted a NOK 353 million private placement with Samsung E&A

Cash balance

NOK 2 059 million

Group financials

(NOK million)	Q1 2025	Q1 2024 (restated)	FY 2024
Revenue from contracts with customers	155	276	1 390
EBITDA	-115	32	-173
EBIT	-187	-13	-389
Pre-tax income (loss)	-180	37	-264
Net income (loss)	-179	39	-258
Net cash flow from operating activities	-58	-37	-83
Cash and cash equivalents*	2 059	3 260*	1 876

Alkaline revenues declined by 69% quarter on quarter, PEM revenues increased by 64%
Alkaline segment had few project milestones in this quarter, while the PEM segment increased revenue from containerized electrolysers compared to same quarter last year
Cost reduction and capacity adjustment measures were announced and implemented in Q1'25, including a temporary halt of the Herøya facility. This will reduce the cost base gradually over the first half 2025

Alkaline financials

Revenue

302

Alkaline reported a 69% decrease in revenue compared to first quarter last year, largely impacted by a lower activity level
Quarterly Revenue and EBITDA Development in Alkaline Division
(NOK million)
254
238
262
224
187
196
220
70
EBITDA decreased by NOK 158m compared to first quarter
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
EBITDA 106
4 19
2024
Q1'25 results included NOK 23m in net research and development expenses compared to NOK 21m in Q1 2024
-11 -3 -8 -7 -3
-52
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
9
©2025 Nel - All rights reserved

PEM financials
174
Revenue
- PEM division reported 64% increase in revenue YoY, primarily driven by containerized deliveries
  153
  117
  107
  112
  77
  85
  52
  64
  Quarterly Revenue and EBITDA Development in PEM division
  (NOK million)
- Q1'25 EBITDA of NOK -31m up
  NOK 12m compared to same
  quarter last year
  Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
  EBITDA
- This quarter included NOK 22m in net research and development expenses compared to NOK 30m in Q1 2024
- Product and project margins are

-23

-44

-23

-39 -43 -43

-57

-22

-31

in general higher compared to previous quarters due to more favourable terms and conditions

Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025

and better execution

Order intake and backlog

Order Intake

(NOK million)

Order Backlog

(NOK million)

500

450

400

350

300

250

200

150

100

398

338

311

270

229

131

161

148

2023 2024

2025

443

3 000

2 500

2 000

1 500

1 000

500

2 443 2 375 2 329

2 093

2 115

2 071

1 872

1 610

1 460

2023 2024

2025

Order intake Q1 2025:

NOK

311 million

-22%

y/y

Order backlog Q1 2025:

NOK

1 460 million

-31%

y/y

- Alkaline

NOK

21 million

-92%

y/y

- Alkaline

NOK

965 million

-42%

y/y

- PEM

NOK

290 million

+127%

y/y

- PEM

NOK

495 million

+11%

y/y

Order intake expected to vary between quarters as order sizes have increased

The order backlog is subject to risks such as delays and/or cancellations

PEM

Alkaline

PEM

Alkaline

Cash burn

Quarterly Cash-burn* Development

(NOK million)

100

-52

-95

-110

-94

-138

-118

-190

-173

-202

-200

-210

-209

-207

-251

-257

-294

-331

-411

- 100

- 200

- 300

- 400

-477

2020

2021

2022

2023

2024

2025

- 500 -464

Historical Cash-burn*

*Includes purchases of property, plant and equipment, payments for capitalised technology and net cash flow from operating activities. Excludes financing activities and other investing activity comprising change in investments in equity instruments, associates, joint ventures, loans, disposal of fixed assets and change in restricted cash.

Burn-rate reduced through downsizing and harvesting of past investments

CAPEX

(NOK million)

Employees

(FTEs)

700

Wallingford factory

Herøya factory

Wallingford factory

Next generation technology development

Other

Next generation technology development

Other

418

423

429 430

396

409 394

334

350

365

306

274 288

600

500

400

300

200

100

A 2024 FC 2025

Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25

*PE (Pressurized Alkaline) 2025 includes NOK 21m related to testing facilities,

13 and is gross of any potential grants from EU Innovation Fund for industrialization of the platform

Total (ex fueling) Runrate H2'25 and onwards

Commercial update

MARKET

Policy-driven markets set to lead early clean hydrogen uptake

EU, US, Japan, and Korea projected to represent ~30% of global hydrogen demand by 2030 driven by supportive policy frameworks
- EU Renewable Energy Directive (REDIII)
- Japan's Contracts for Difference (CfD)
- South Korea's Clean Hydrogen Portfolio Standard (CHPS)
- US Inflation Reduction Act (IRA)
Applications such as refining, ammonia, and methanol production are expected to make up ~75% of demand
Emerging applications, such as power generation, heavy transport, aviation, and maritime, could contribute ~25% of demand by 2030, but progress will depend on further regulatory support

Annual H2 demand where existing policy initiatives enable a positive

business case by 2030

8 Mt

Source: Hydrogen Council and McKinsey, Hydrogen: Closing the Cost Gap, 2025
©2025 Nel - All rights reserved
MARKET
Futher volumes can be unlcoked with modest cost reductions

<0.5 $/kg gap ~0.5-5 $/kg gap
8 Mt 13 Mt 13 Mt
Source: Hydrogen Council and McKinsey, Hydrogen: Closing the Cost Gap, 2025
©2025 Nel - All rights reserved
MARKET
Market perspective
- Healthy demand for the containerized PEM solutions, where Nel delivers more of the total scope compared to its alkaline solutions.
- For large-scale systems more clarity around EU and US regulations in combination with national hydrogen auctions will help demand
- Several of Nel's target projects are expected to take FID in the next quarters, projects are generally in the 20-200 MW range
- Order intake is expected to be higher in 2025 than in 2024. The quality of the projects is also generally higher given more rigid and demanding qualification processes and FID requirements
  17
  ©2025 Nel - All rights reserved
  
  MARKET
  Order intake
  (NOK million)
  Record high PEM order intake in the quarter
- Order intake for the quarter reached record levels
- Nel continues to see good momentum for containerized PEM solutions, the MC-series, and expect additional near-term contract wins
- The MC series offers an unrivalled track record for the segment, with proved field experience and market leading reliability
- Modular system, easy transportation and installation makes it easy for the client

300

229

161

398

338

131

443

270

148

2023 2024

2025

250

200

150

100

290

PEM

The third purchase order from a major US steel producer signed

Client: Undisclosed Size: 5 MW
Value: USD ~7 million
The undisclosed customer, one of the largest US steel producers, already uses Nel's PEM electrolysers to generate hydrogen at two other sites in the US
Nel continues to see an increasing demand for containerized PEM electrolysers for smaller installations as this reliable turn-key concept offers easy outdoor installation and operation

2.5 MW containerized PEM unit for the Aberdeen Hydrogen Hub project in Scotland

Source: Hydrasun
©2025 Nel - All rights reserved
- Client: Hydrasun, delivering H2 through a JV between bp and Aberdeen City Council
- Size: 2.5 MW
- Nel will deliver its standardized containerized PEM unit, the MC 500, for this storage and distribution facility powered by renewable energy
Purchase order from Collins Aerospace for U.S. Navy stacks
- Client: Collins Aerospace Value: USD ~6 million
- The stacks will be used by the U.S. Navy to produce oxygen for critical life support onboard submarines
- This order is the most recent in a series of deliveries to the client, where Nel has a long track record of developing and delivering equipment for this application where quality and durability is key
- The stacks will be delivered over several years, with initial deliveries in late 2025
Source: Collins Aerospace

Technology update

TECHNOLOGY UPDATE

Flexible portfolio with exposure to all market segments

2.5MW AWE @ 1 bar 10-80 MW

Nel provides stack+BoS+BoSyS EPC partners provide BoP

X*100 MW

Nel provides stack+BoS,

EPC partners provide BoP + system PFGs

1.25MW PEM @ 30 bar 1-30 MW

Nel provides full BoP solution with MC-units

30-100 MW

Nel provides 10 MW stack skids, EPC partners provide BoP + system PFGs

Source: HydePoint

TECHNOLOGY UPDATE

Signed MoU with HydePoint for offshore and nearshore projects

The project aims to enable scalable green hydrogen production in offshore, nearshore, and other harsh environments
The collaboration will focus on the integration of Nel's PEM electrolyser stacks into HydePoint's modular hydrogen production systems
By focusing on system efficiency, modularity, and operational resilience in offshore and nearshore environments, the collaboration will look at solutions to significantly improve the Levelized Cost of Hydrogen (LCOH)
1. Source: HydePoint
  ©2025 Nel - All rights reserved
  
  TECHNOLOGY UPDATE
  LOW CAPEX
  MEDIUM OPEX
  10  X*100 MW
  
  Next generation platforms under development
  Next iteration of 2.5 MW AWE
  Nel provides stack+BoS, OEM/EPC partners provide BoP
  MEDIUM CAPEX LOW OPEX
  
  6.25 MW AWE 25  X*100 MW
  Nel provides stack+BoS, OEM/EPC partners provide BoP
  LOW CAPEX LOW OPEX
  
  3 MW PEM 3  24 MW
  Nel provides full BoP solution with MC-
2. units
24  X*100 MW

Nel provides 24 MW stack skids, EPC partners provide BoP + system PFGs
TECHNOLOGY UPDATE
Pressurized alkaline (PE) development underway
Development of the prototype is according to plan with promising results
- Broken ground at Herøya test site
- Gas skid at final construction phase
- Stacks being assembled
Started to prepare for industrial manufacturing at Herøya
- Production concept verified - significantly lower
  CAPEX and footprint per MW vs atm. AWE
- FID for equipment related to key process steps taken
€135m grant contract for industrialisation of the
PE platform signed with EU Innovation Fund

26
TECHNOLOGY UPDATE
Norwegian Hydrogen takes FID
31/3-2025, Norwegian Hydrogen announced it had taken FID for its Rjukan project, where Nel has been selected to deliver a 25 MW Pressurized Alkaline (PE) pilot
From Rjukan, Norwegian Hydrogen will supply green hydrogen to both existing and new customers in southern Norway and parts of Sweden, offering predictable and competitive terms
The facility is projected to be completed at the end of 2027
The company is also considering starting production

ahead of full completion

27 Source: Norwegian Hydrogen

Partnership update

PARTNERSHIP UPDATE

Signed collaboration agreement and conducted a private placement with SAMSUNG EsA

Signed an EPC collaboration agreement allowing SAMSUNG E&A to offer complete hydrogen plants using Nel's electrolysers

With this agreement, Nel continues to widen its global delivery capabilities and strengthen its overall competitiveness

In a separate transaction, Nel raised NOK 353m in a direct private placement as SAMSUNG E&A became Nels largest shareholder with a post-transaction ownership of 9.1%

PARTNERSHIP UPDATE

Nel has become a preferred partner for global industry leaders

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NEL ASA published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 06:04 UTC.

Market Closed - Oslo Bors Other stock markets 10:45:00 2025-06-13 am EDT			5-day change	1st Jan Change
2.324 ^NOK	-5.37%		-2.60%	-14.05%

May. 26	Nel ASA Appoints Gyuyeon Kang to the Board of Directors	CI
May. 14	NEL : Lack of orders a crucial overhang, financial runway available, but FIDs needed

Nel ASA Appoints Gyuyeon Kang to the Board of Directors	May. 26	CI
NEL : Lack of orders a crucial overhang, financial runway available, but FIDs needed	May. 14
Wind Energy Stocks Gain on Better-Than-Feared U.S. Clean Energy Tax Plan	May. 13	DJ
Norwegian utility Statkraft halts new green hydrogen developments	May. 08	RE
Kepler Cheuvreux lowers its target price for Nel to NOK 1.60 (2), reiterates its downgrade	May. 02	FW
Nel Unit's Deal with Norwegian Renewable Energy Producer Statkraft Falls Through	Apr. 30	MT
Nel ASA Says Statkraft Has Cancelled The 40 MW Alkaline Electrolyser Contract	Apr. 30	RE
Nel ASA, Q1 2025 Earnings Call, Apr 30, 2025	Apr. 30
Nel Q1 EBITDA Loss NOK 115 Mln	Apr. 30	RE
Nel's operating profit declined more than expected	Apr. 30	FW
Nel ASA Reports Earnings Results for the First Quarter Ended March 31, 2025	Apr. 30	CI
NEL ASA : RBC is Neutral	Apr. 28	ZD
Morgan Stanley lowers target price for Nel to NOK 2 (3.50), reiterates Underweight - BN	Apr. 23	FW
Nel's US Arm Books $6 Million Order for PEM Electrolyzer Stacks from Collins Aerospace	Mar. 28	MT
NEL ASA Receives Purchase Order From Collins Aerospace For U.S. Navy Stacks	Mar. 27	RE
NEL ASA Receives Purchase Order From Collins Aerospace For U.S. Navy Stacks	Mar. 27	RE
Nel ASA Says Receives Purchase Order From Collins Aerospace For U.S. Navy Stacks	Mar. 27	RE
Norway's Nel ASA Unit to Supply Electrolyzer for BP Hydrogen Hub	Mar. 20	MT
Nel Receives Order For One PEM Electrolyser in US	Mar. 20	RE
NEL ASA : Bernstein remains Neutral	Mar. 12	ZD
Nel, Samsung E&A to Develop Complete Hydrogen Plants	Mar. 12	MT
Nel Signs Collaboration Agreement, Conducts Private Placement With Samsung E&A	Mar. 12	RE
Nel partners with Samsung company - which also becomes new major shareholder	Mar. 11	FW
Nel ASA Signs Collaboration Agreement	Mar. 11	CI
Nel ASA announced that it expects to receive NOK 353.06747 million in funding from Samsung E&A Co., Ltd.	Mar. 10	CI

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