HydrogenPro (HYPRO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was NOK 70 million, mainly from SALCOS project deliveries, with a 41% gross margin and stable delivery performance.

• Completed a NOK 140 million capital raise at a 22% premium, bringing in ANDRITZ, Mitsubishi, and pending LONGi investment, with industrial partners now holding 42% ownership.

• Advanced electrode manufacturing line in Denmark completed on time and below budget, with full production expected in Q1 2025 and order book fully booked through Q3 2025.

• Delivering two of the ten largest global electrolyzer projects (excluding China) set to come online in 2025, enhancing global reach and project delivery capabilities.

• Maintained a strong safety record with zero lost time incidents over the past 12 months.

Financial highlights

• Q4 2024 revenue was NOK 70 million; gross profit NOK 29 million (41% margin), EBITDA loss NOK 44 million, and net loss NOK 38 million.

• Cash balance at year-end was NOK 191 million, up from NOK 188 million in Q3 2024, with investments focused on Denmark capacity expansion.

• Order backlog at year-end was NOK 305 million, mainly for SALCOS and ACES service contracts.

• Personnel expenses rose to NOK 42 million; other operating expenses increased by NOK 13 million, mainly due to capital raise-related costs.

• Net financial items showed a gain of NOK 12 million in Q4 2024, mainly from foreign exchange translation gains.

Outlook and guidance

• Market remains slower than expected with increased competition and project delays, but optimism for 2025 is higher due to a maturing project pipeline and robust partnerships.

• Global electrolyzer deliveries expected to reach 20 GW over 2024–2025, translating to over NOK 50 billion, with majority demand in China and Europe.

• European Hydrogen Bank requirements will be met with minor supply chain adjustments, despite regulatory changes increasing costs.

• Factory in Denmark fully booked for advanced electrode production through Q3 2025.

• Long-term outlook for green hydrogen remains positive, with several delayed projects moving toward final investment decisions.