HydrogenPro (HYPRO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was NOK 22 million, mainly from deliveries to the SALCOS project with ANDRITZ in Germany, and included a USD 2.5 million purchase order; major projects ACES (USA) and SALCOS (Germany) are progressing, with installations and commissioning scheduled for 2025/2026.

• Strategic partnerships with Andritz, Mitsubishi, and pending with Longi, support capital and technology development, with equity injections from Andritz and Mitsubishi completed and NOK 70 million from Longi expected in Q2 2025.

• New advanced electrode manufacturing line in Denmark started on time and below budget, producing Generation 3 electrodes and supporting EU Net-Zero goals.

• Successful full-scale validation test of Generation 3 electrodes showed 12-14% performance improvement over previous generation.

• Cost reduction measures underway, targeting annual savings of over NOK 40 million through downsizing and lower external costs.

Financial highlights

• Q1 2025 revenue was NOK 22 million, down from NOK 70 million in Q4 2024 but up from NOK 4 million in Q1 2024, mainly from Salcos project deliveries.

• Gross margin was 32%, negatively impacted by NOK 8.2 million on ACES; adjusted gross margin would be 69%.

• EBITDA was minus NOK 50 million; EBIT was minus NOK 55 million; net loss was NOK 65 million, compared to NOK 38 million loss in Q4 2024.

• Cash balance decreased from NOK 191 million to NOK 165 million during the quarter.

• Backlog increased from NOK 305 million to NOK 318 million, including a $2.5 million purchase order.

Outlook and guidance

• ACES project entering hot commissioning in coming months; Salcos assembly started, with deliveries from Denmark in H2 2025.

• Cost savings program targeting over NOK 40 million in annual reductions through downsizing and lower external costs, with increasing impact through 2025.

• Market for large-scale hydrogen projects remains slow, with delays in project FIDs, but Europe is gaining momentum due to policy incentives and decarbonization needs.

• No specific guidance on future investment levels, but R&D and test center investments will be prudent and supported by grants where possible.

• Company expects continued challenges from funding, rising costs, and regulatory uncertainty, but sees opportunities in smaller, scalable projects.