Oslo-based hydrogen solutions provider NEL ASA reported a decline in revenue for the second quarter of fiscal year 2025, according to its latest earnings call transcript. The company’s management revealed that the revenue downturn is largely attributed to delayed project development timelines and weakened market dynamics in the hydrogen sector.
During the earnings call, NEL stated that the revenue shortfall was in line with internal expectations, but still underscores significant pressures facing the industry. Among the contributing factors cited were delays in large-scale hydrogen infrastructure projects, prolonged contract negotiations, and a sluggish investment environment.
The company emphasized ongoing efforts to mitigate these challenges, including strengthening its project pipeline and investing in strategic partnerships to facilitate commercialization efforts. While sales activity remained robust in terms of inquiries and future interest, conversion into actual orders remained slow.
NEL’s leadership acknowledged the difficulty of operating in a rapidly evolving market landscape but reaffirmed confidence in the long-term growth potential of hydrogen technology. Plans are underway to streamline operations and improve cost efficiency, including a closer integration of its electrolyser and fueling solutions business segments.
Looking ahead, NEL aims to maintain a cautious but optimistic outlook for the remainder of the fiscal year. Management will continue focusing on securing key projects and refining execution strategies to adapt to changing market conditions.
Investors and stakeholders are advised to monitor upcoming developments closely, particularly in regulatory support and global hydrogen infrastructure investments, which could significantly impact NEL’s prospects for recovery and expansion in future quarters.
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