Nel (NEL) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached NOK 416 million, with full-year revenue at NOK 1,390 million, driven by increased PEM deliveries and licensing income; EBITDA loss improved to NOK -36 million in Q4 and NOK -173 million for the year, with positive Q4 operating cash flow.

• Order intake for Q4 was NOK 148 million, up 13% year-over-year, with a year-end backlog of NOK 1,614 million; notable orders include Samsung C&T, Trillium, and a major US steel producer.

• Organizational downsizing and temporary production halt at Herøya were implemented to align with lower order intake and market demand.

• Secured EUR 135 million EU grant for next-generation pressurized alkaline technology and USD 29 million in US tax credits for manufacturing expansion.

• Completed restructuring to become a pure-play electrolyser business, including the spin-off of Cavendish Hydrogen ASA.

Financial highlights

• Q4 2024 revenue: NOK 416 million (+1% year-over-year); full-year 2024: NOK 1,390 million (+3%).

• Q4 EBITDA loss: NOK -36 million (improved from NOK -78 million YoY); full-year EBITDA loss: NOK -173 million (vs. NOK -272 million in 2023).

• Net loss for Q4 was NOK -64 million (vs. NOK -50 million YoY); full-year net loss was NOK -258 million, improving from NOK -566 million in FY 2023.

• Positive Q4 operating cash flow of NOK 25 million, reversing a NOK -101 million outflow in Q4 2023.

• Cash balance at year-end stood at NOK 1,876 million, down from NOK 3,363 million a year earlier.

Outlook and guidance

• 2025 order intake expected to surpass 2024, with January already exceeding Q4 2024 intake; market recovery and higher project quality anticipated.

• Strategy focuses on delivering reliable, energy-efficient electrolysers to mid- and large-scale projects, mainly in Europe and North America.

• Cost base and investments are being reduced, with 2025 investments expected to be about 50% lower than 2024.

• Temporary shutdown of the Herøya alkaline facility in Q1 2025; duration depends on future order intake.

• Continued investment in next-generation technologies and capacity expansion, subject to market acceptance and successful pilot testing.