Nel ASA: Second quarter 2025 financial results

(July 16, 2025 - Oslo, Norway) Nel ASA (Nel, OSE: NEL) reported revenues fromcontracts with customers of NOK 174 million in the second quarter of 2025,downfrom NOK 332 million the same quarter last year. Total revenue and income wasNOK 215 million (Q2 2024: 356) and EBITDA in the quarter came in at NOK -86million (Q2 2024: -79). While the financial result from the PEM division wasstable compared to the same quarter last year, the Alkaline division wasimpacted by lack of project milestones in the quarter. Order intake for thequarter was NOK 71 million, and at the end of the quarter the order backlogstood at NOK 1 249 million. The company reported a healthy cash balance of NOK1928 million.

Quarterly highlights

· Revenue from contracts with customers in the second quarter 2025 was NOK174million, a 48% reduction compared to the second quarter 2024 (Q2 2024: 332). · Total revenue and income in the second quarter 2025 was NOK 215 million(Q22024: 356 · EBITDA in the quarter was NOK -86 million (Q2 2024: -79). · Net loss was NOK -131 million (Q2 2024: -118). The development was mainlyexplained by decreased operating loss of NOK -27 million, offset by NOK 16million increased net financial items. · Order intake in the quarter amounted to NOK 71 million, a 74% decreasefromthe corresponding quarter last year (Q2 2024: 270). · Order backlog was NOK 1 249 million at the end of the quarter, down 40%fromthe second quarter of 2024 and down 14% from the previous quarter. · Cash balance was NOK 1 928 million at quarter end (Q2 2024: 2 228).

"I'm pleased with how the company has responded to a continued challengingmarket. We maintain cash discipline, continue to advance our technology, andstay focused on our strategic priorities," says Håkon Volldal, President andCEOof Nel.

While still investing aggressively in development of next-generationtechnologies, management implemented cost reduction and capacity adjustmentmeasures, including a temporary shut-down of the Herøya facility, earlier thisyear. The measures reduced the cost base in the first half 2025 compared to2024.

"This may appear to have been a quiet quarter, but the activity level hasremained high, and we are now seeing more positive signals." Volldal says."Thefact that we are working on an increasing number of FEED studies with strongindustrial counterparties, coupled with a more favourable policy outlook inboththe EU and the US, suggests that the worst may be behind us, although thetimingof a market uptick remains difficult to predict."

The company is well positioned to maintain a leading role among electrolysermanufacturers. A proven track record of delivering working electrolysersystemsover several decades, a diverse product portfolio covering both alkaline andPEMsolutions, and automated GW-scale production facilities are importantdifferentiating factors. Nel also continues to make significant investments inimproving the performance of current technology platforms and maturing nextgeneration technologies. Nel's industrial and technological development isstrengthened by its strategic collaborations with partners such as GeneralMotors, Reliance, Samsung E&A and Saipem.

Product development for the next-generation pressurized alkaline electrolysercontinues to progress well with full-size electrode testing ongoing at Nel'stest centre in Notodden, Norway, and a full-scale prototype plant underconstruction at Herøya. Development of the next generation PEM stack is alsoadvancing according to plan as Nel has successfully passed a key designreview,initiated procurement of full-scale prototype components, and continues toinvest in test infrastructure.

Nel PEM Electrolyser reported revenues in line with the same quarter lastyear,where revenues are largely driven by sale of containerized electrolysers.EBITDAfor PEM was NOK -38 million, up from NOK -43 million the same quarter lastyear.The PEM segment reported an order backlog of NOK 423 million, up 11% fromQ2'24.

Nel's Alkaline Electrolyser reported a 70% decrease in revenue compared tosecond quarter last year. EBITDA of NOK -26 million was a NOK 23 milliondecrease compared to the second quarter of 2024. Backlog for the division camein at NOK 826 million.

The second quarter 2025 report and presentation are enclosed and available onnewsweb.no (http://www.newsweb.no) (Ticker: NEL) andnelhydrogen.com (http://www.nelhydrogen.com). The presentation will be avirtualevent only, followed by a Q&A session, and can be accessed on the company'swebsite www.nelhydrogen.com/quarterly-presentation/ or by following thislink (https://events.teams.microsoft.com/event/b2636f3a-d692-403a-b954-3b9daea990d0@76311e5d-2c31-404e-a148-a4c38d285e9e). A recording of thepresentation will be made publicly available following the event.

ENDS

For additional information, please contact:Kjell Christian Bjørnsen, CFO, +47 917 02 097Wilhelm Flinder, Head of IR, Communications & Marketing, +47 936 11 350

About Nel ASA | www.nelhydrogen.comNel has a history tracing back to 1927 and is today a leading pure playhydrogentechnology company with a global presence. The company specializes in PEM andAlkaline electrolyser technology for production of renewable hydrogen. Nel'sproduct offerings are key enablers for a green hydrogen economy, making itpossible to decarbonize various industries such as transportation, refining,steel, and ammonia.

This information is subject to a duty of disclosure pursuant to Section 5-12ofthe Norwegian Securities Trading Act. This information was issued as insideinformation pursuant to the EU Market Abuse Regulation, and was published byWilhelm Flinder, Head of Investor Relations, at NEL ASA on the date and timeprovided.

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