HydrogenPro ASA (“HydrogenPro” or the “Company”) published on May 13^th the Company’s Q1 report for 2026. The following are some key points that we have chosen to highlight in connection with the report:

• Revenues of NOK 15.9m, reflecting continued low project activity
• Strengthening pipeline signals, high-probability FID opportunities expected during 2026
• Cost base was further reduced, with operating expenses down 27% Y-Y and EBITDA improving to NOK -32m, the lowest quarterly burn in recent reporting periods
• New OEM partnership with LONGi providing access to 1 GW manufacturing capacity, alongside mothballing of Tianjin operations and additional annual cost savings exceeding NOK 20m
• Cash position reduced to NOK 56m from NOK 102m, strategic review initiated

Continued Low Activity in a Transition Quarter

HydrogenPro reported total revenues of NOK 15.9m (22.4m) in Q1-26, corresponding to a decrease of 29% compared to the same period last year, and broadly in line with the NOK 16.5m recorded in Q4-25. Revenues in the quarter were primarily attributable to electrode deliveries from the Aarhus facility to the SALCOS project, reflecting the wind-down phase of HydrogenPro’s two major reference projects, ACES and SALCOS. Order intake during the quarter amounted to NOK 3m, while the order backlog decreased to NOK 252m, down from NOK 275m at the end of Q4-25, with the reduction primarily attributable to revenue recognition during the period and foreign currency revaluation of contracts denominated in other currencies, partly offset by new order intake.

Analyst Group notes that the continued low revenue and limited order intake reflect the structural transition phase HydrogenPro is currently navigating, where the legacy large-scale reference projects are approaching completion while new large-scale orders remain dependent on the maturation of the broader pipeline through FID.

A More Granular View of the Green Hydrogen Market

The market commentary in the Q1-26 report describes the green hydrogen market as a ”tale of two stories”, combining selective project maturation in the most bankable segments with continued uncertainty around the timing of certain European projects.

A key reason is the implementation pace of RED III, the European Union’s revised Renewable Energy Directive, which sets the rules for what counts as renewable hydrogen and the conditions producers must meet for their hydrogen to qualify for EU support schemes. While the Directive itself has been adopted at EU level, individual Member States are still in the process of writing these rules into their own national laws, with a deadline of mid-2026. Until that process is complete, there is uncertainty around how projects will be assessed, which can affect their financing, and the Company notes that some European projects are now postponing their final investment decisions while waiting for clearer national rules, even in cases where power supply and customers for the produced hydrogen are already in place.

Despite this near-term uncertainty, Analyst Group considers HydrogenPro to be well positioned for the next phase of the market. The Company has a validated large-scale track record through ACES and SALCOS, a European manufacturing footprint that supports compliance with localization requirements, and an in-house electrode technology that provides a competitive advantage on efficiency and long-term durability. New large-scale opportunities (three-digit MW) are converging towards industry segments that are proving more bankable, such as refining and e-fuels, where HydrogenPro already has relevant exposure, while the mid-size segment (double-digit MW) with partner JHK shows signs of commercial potential.

Outside Europe, India and the MENA region stand out as key locations of progress. India’s National Green Hydrogen Mission is shifting from policy design to execution, with increasing activity around FIDs and renewable build-out, where HydrogenPro’s partnership with Thermax provides a direct route into one of the fastest-growing markets globally. In MENA, more than 117 announced projects are supported by rapid solar and wind expansion, keeping the region a leading hub for large-scale hydrogen investment. Combined, this positions HydrogenPro to participate in the parts of the market where momentum is the strongest, while retaining exposure to the European market once regulatory implementation accelerates.

Materially Stronger Gross Margin Reflecting Product and Service Mix

The gross margin amounted to 62% in Q1-26, compared to -23% in Q4-25 and 30% in Q1-25. The gross profit was positively impacted by the delivery of higher-margin items and revenue from service activities that do not carry corresponding material costs.

Analyst Group assesses that the strong margin during the quarter validates that the negative margin in Q4-25 was a transitory effect of deferred revenue recognition rather than a deterioration in underlying profitability. While quarterly margins remain volatile given the limited revenue base, the mix shift towards electrode deliveries and service activities supports a structurally higher margin profile.

Cost Base Continues to Reduce, Yielding a Materially Lower Cash Burn

Personnel expenses in Q1-26 amounted to NOK 30.2m, in line with Q4-25 and NOK 9m lower than Q1-25, reflecting the full effect of the cost savings program executed during 2025. Other operating expenses decreased to NOK 11.2m compared to NOK 17.8m in Q1-25, with the reduction driven by a reversal of provisions from the prior year and continued group-wide cost discipline. Combined, operating expenses decreased by approximately 27% Y-Y, illustrating the structural effect of the cost measures implemented over the past year.

EBITDA for the quarter amounted to NOK -31.6m, compared to NOK -49.5m in Q4-25 and NOK -49.8m in Q1-25, representing the lowest quarterly EBITDA loss across the recent reporting periods. Analyst Group views this as a clear validation that the cost reductions announced and executed during 2025 are now reflected in the underlying operating cost base, without the offsetting effect of one-off severance costs that distorted the comparison in previous quarters. Importantly, this lower burn rate is achieved while the Company has maintained delivery capability and project execution, reinforcing the assessment that the cost structure has been right-sized rather than restricted in a way that constrains commercial activity.

In addition to the cost reductions already reflected in the Q1-26 numbers, HydrogenPro communicated a further set of measures in connection with the report, including downsizing of the Chinese operations in line with the LONGi OEM agreement, a group-wide salary freeze with management salary reductions, temporary lay-offs in Europe, and reductions across office rental, external consultants and travel. The combined initiatives are expected to deliver additional annual cost savings exceeding NOK 20m.

Aarhus Investment Program Approaching Completion

Net cash flow from investing activities amounted to NOK -3m in Q1-26, primarily related to the ongoing expansion of manufacturing capacity in Aarhus. The total investment budget for the plating line remains NOK 60m, of which NOK 50m had been paid at the end of Q1-26, leaving NOK 10m for the remainder of 2026. Analyst Group considers the near-completion of the Aarhus investment program a meaningful milestone, as capex requirements decline going forward while the in-house production of next-generation catalyst coatings continues to support HydrogenPro’s competitive position on both efficiency and durability.

New OEM Agreement with LONGi Reshapes the Manufacturing Setup

In connection with the Q1-26 presentation, HydrogenPro announced a new OEM partnership with LONGi for the production of electrolyzer components and gas separation units, providing access to approximately 1 GW of scaled manufacturing capacity at a state-of-the-art facility in Wuxi, China. The production is based entirely on HydrogenPro’s proprietary technology, while electrode development and production remain in-house at the Aarhus facility in Denmark. In parallel, HydrogenPro will mothball its existing Tianjin operations.

Analyst Group views the agreement as a strategically meaningful evolution of HydrogenPro’s asset-light business model. Access to LONGi’s industrialized production base is expected to deliver cost savings and shorter lead times, while the decision to mothball Tianjin further reduces the fixed cost base. The arrangement strengthens HydrogenPro’s positioning at a time when industrial scale and unit economics are increasingly decisive factors in winning large-scale orders.

Strategic Review Initiated to Strengthen the Financial Position

The cash position at the end of Q1-26 amounted to NOK 55.8m, compared to NOK 102.2m at the end of Q4-25, corresponding to a net change in cash of NOK -46.4m during the quarter. The decline reflects the underlying EBITDA loss of NOK -32m combined with a negative working capital movement of NOK -10m and continued investment activity in Aarhus. The Board of Directors initiated a strategic review during the quarter and engaged Clarksons Securities AS as financial advisor to evaluate alternatives that may support the Company’s liquidity needs, future growth and commercial development. The Company indicates in the report that its available cash runway is limited and that additional external financing is likely to be required in the near term.

Analyst Group views the strategic review as a signal that the financing question has moved to the top of the Board’s agenda and assesses that a near-term capital raise or other strategic transactions are increasingly probable. At the same time, it should be noted that HydrogenPro historically has been well supported by its industrial partners, including Mitsubishi Heavy Industries, ANDRITZ and Longi, all of which are today significant shareholders in the Company. These partners have strengthened HydrogenPro’s balance sheet through directed share issues, including the NOK 70m equity injection from ANDRITZ and Mitsubishi in January 2025 and the subscription from Longi in mid-2025, which Analyst Group considers a relevant precedent given the current situation.

Furthermore, materialization of one or more of the high-probability FID opportunities that management points to during 2026 would meaningfully improve both the revenue trajectory and the financing conditions available to the Company and would likely reduce the size of any required external capital injection. The outcome and structure of the strategic review, as well as the pace of FID conversion, will therefore be important factors for investors to monitor going forward.

Strong Sector Momentum Reflects Multiple Structural Drivers

The share price of HydrogenPro has developed positively following the close of Q1-26, and a comparable pattern has been observed across the broader green hydrogen peer group, including Nel, ITM Power, ThyssenKrupp Nucera and Plug Power, indicating that the share movement is sector-wide. Analyst Group assesses that the movement reflects a combination of factors marking a meaningful shift in sentiment toward the sector, consistent with the more selective but firmer FID activity that HydrogenPro itself describes in its Q1-26 outlook. The European FID pipeline is maturing, among other things illustrated by ThyssenKrupp Nucera’s recent 300 MW order for the Moeve hydrogen project in Spain. Moreover, the European Commission recently awarded EUR 1.09bn in funding to nine hydrogen production projects under the third European Hydrogen Bank auction, which continues to be a key mechanism for narrowing the cost gap between renewable hydrogen and fossil alternatives. Analyst Group considers these developments to provide tangible evidence that the European market is moving from announcements to execution.

Additional contributing factors include the renewed focus on energy security following the recent escalation in the Middle East, which has reinforced the strategic rationale for accelerating the build-out of domestically produced clean energy in Europe, as well as the continued progress in India and the MENA region, both of which HydrogenPro highlights as key markets of opportunity through its partnership with Thermax and ongoing positioning in the Middle East.

In conclusion, Analyst Group views HydrogenPro’s Q1-26 report as a quarter that combines visible operational improvements, in the form of a materially lower cost base, a stronger gross margin and the near-completion of the Aarhus electrode investments, with increased focus on the financial position through the initiation of a strategic review. The Company’s commercial positioning has been strengthened through its EPC partnerships, validated electrode technology and exposure to the industry segments and geographies showing the strongest momentum, and management points to high-probability FID opportunities expected during 2026. The path forward runs through the parallel work streams of converting the pipeline into revenue and resolving the financing question, where HydrogenPro’s strong industrial ownership base provides a relevant supportive factor.

We will return with an updated equity research report of HydrogenPro.

HydrogenPro ASA (“HydrogenPro” or the “Company”) published on February 27^th the Company’s Q4-report for 2025. The following are some key points that we have chosen to highlight in connection with the report:

• Projects are moving towards FIDs (Final investment decisions)
• Strong project pipeline with NOK ~1bn potential for projects in final contract stage
• Continued execution of the cost saving program

Continued Low Activity but Strengthening Market Signals

HydrogenPro reported total revenues amounting to NOK 16.5m (70.1) in Q4-25, corresponding to a decrease of 76% compared to the same period last year. Revenues in the quarter were mainly attributable to the 220 MW ACES project in Utah, which is now nearing completion. All 40 electrolyser units have been commissioned and have operated at full load, with HydrogenPro’s scope effectively delivered and fully operational. As one of the world’s largest renewable hydrogen projects, ACES represents a key reference project for HydrogenPro, demonstrating large-scale execution capability and strengthening the company’s track record in a market where proven delivery capacity is increasingly decisive for securing new contracts.

The decreasing revenue during the quarter, and the full year 2025 where total revenue decreased by 56% to NOK 86.7 (195.7), highlight the recent years challenging market conditions, which have caused delays in final investment decisions (FID), hence a lack of order intake for HydrogenPro. The order backlog increased to NOK 275m compared to NOK 252m at the end of Q3-25, where the increase primarily was attributable to deferred revenue recognition related to the ACES project, as revenues that would normally have been recognized remained unbooked, thereby inflating the backlog rather than reflecting new order intake.

However, after a prolonged slowdown in 2024–2025, the green hydrogen market showed renewed momentum in Q4, particularly in Europe, where clearer regulatory frameworks (RED III, RFNBO), EU Hydrogen Bank auctions and national funding schemes are helping mature projects move toward FID. While policy uncertainty in the U.S. and aggressive price competition from China remain challenges, activity is strengthening in India and the Middle East, supported by low-cost renewables and growing export ambitions. Against this backdrop, HydrogenPro is positioned to benefit through its validated large-scale reference projects like the ACES and SALCOS project, localized European manufacturing footprint, strategic EPC partnerships, and efficiency gains from next-generation electrode technology, which enhance project bankability and competitiveness as the market shifts from announcements to execution in 2026 and beyond.

The Company maintains a strong project pipeline with solid potential to increase order intake in 2026 as projects progress toward final investment decisions (FIDs), including approximately NOK 1bn in projects currently in the final contract negotiation stage, representing prospective new orders. HydrogenPro is expected to continue to leverage strong partnerships which enable HydrogenPro to deliver on a global scale with a limited cost base, creating a scalable business model. The five key partners Mitsubishi, Andritz, LONGi, Thermax and J.H.K., validate the technology, expand global reach, and enable bidding on projects of various scales.

Temporary Effects on the Gross Margin

The gross margin amounted to -24% (41.3), affected by deferred revenue recognition related to the ACES project, resulting in costs being recognized ahead of associated revenues. As these revenues are recognized in subsequent quarters, margins are expected to normalize.

Lower Cost Base than Expected

The EBITDA result amounted to NOK -49m (-44), where the decline is attributable to lower sales and gross margin. In terms of operational expenses, these decreased to NOK 51.1m (78.5), corresponding to a decrease of 37% Y-Y and 29% Q-Q. HydrogenPro continues to execute the Company’s cost savings program, where NOK 50m in annual savings was reached by the end of Q4-25, more than the initial target of NOK 40m. Among other things, the number of FTEs decreased to 86 compared to 147 at the end of Q2-25, where personnel expenses decreased to NOK 30m (41.8). Moreover, the lower cost base, in addition to the downsizing, is also attributable to reduced project delivery costs, reflecting the wind-down of deliveries to the ACES and SALCOS projects, while limited order intake has constrained the commencement of new deliveries.

Stable Cash Positions

The operating cash flow amounted to NOK -12.9, positively affected by change in working capital by NOK 31.1m. Investments amounted to NOK -5m, primarily attributable to the expansion of electrode manufacturing capacity in Aarhus. The total investment for this is estimated at NOK 60m, with NOK 47m being paid, leaving NOK 13m in expected investments for 2026. HydrogenPro’s new electrode technology achieves a substantial improvement in efficiency, increasing energy conversion by up to >12-14%, which saves customers large investments, as electricity accounts for 70-90% of total project costs, and is one of the key factors in determining economic viability. We therefore view electrode technology as an important competitive advantage and see it as rationale to invest in production capacity for the anticipated increasing demand.

The cash position at the end of 2025 amounted to NOK 102.2m compared to NOK 121.4 at the end of Q3-25. The cost-savings program has lowered the overall cost base and cash burn, and Analyst Group assesses the financial position as stable. Nevertheless, we continue to emphasize that increased order intake and revenues are important to improve profitability and cash flow in the coming years to avoid a strained liquidity position going forward, especially as new projects are expected to take some time to scale up and generate revenues. However, it should be mentioned that HydrogenPro’s partners and major shareholders have a history of supporting the Company financially through directed issues.

In conclusion, HydrogenPro’s Q4-25 reflects continued low revenues as major projects near completion and delayed FIDs have limited new order intake; however, the ACES project strengthens the Company’s position as a proven large-scale supplier in a maturing hydrogen market. At the same time, the Company has significantly reduced its cost base beyond initial targets, supporting a more sustainable cash burn, and with a cash position of NOK 102m, HydrogenPro is assessed as financially stable in the near term, though increased order intake remains crucial to drive profitability. Importantly, market signals improved during the quarter, particularly in Europe, and with approximately NOK 1bn in projects in final contract negotiations, order intake is expected to strengthen in 2026.

We will return with an updated equity research report of HydrogenPro.

HydrogenPro ASA (“HydrogenPro” or the “Company”) published on November 14^th the Company’s Q3-report for 2025. The following are some key points that we have chosen to highlight in connection with the report:

• Projects are moving towards FIDs (Final investment decisions)
• Strong partnerships enable HydrogenPro to capitalize on improved market conditions in a scalable way
• Cost saving program finalized – NOK 40m in savings annually

Further Project Delays Hampers Order Intake but Signs of a Stronger 2026

Revenues amounted to NOK 34.4m (71.6), corresponding to a decrease of 52% Y-Y, however, compared to Q2-25, revenues grew 178%. The reported sales during the quarter were attributable to deliveries to the ACES project, which is now up and running. HydrogenPro’s revenues are recognized as deliveries are made to customer sites, making reported revenues volatile on a quarterly basis, in the comparison quarter, HydrogenPro made large deliveries to the Green Steel SALCOS project (100 MW) with the partner Andritz.

The order backlog amounted to NOK 252m (341), corresponding to a decrease of 26%, highlighting the lack of order intake while continuing to deliver on ongoing projects like the ACES and SALCOS project. The order backlog is now assumed to consist mainly of the service agreement for the Aces project and deliveries of the 3^rd generation electrodes to the SALCOS project, with all stacks scheduled for delivery by Q1-26.

Hydrogen projects have faced challenging market conditions during the last years, which has caused delays in final investment decisions (FID). However, the slowdown in large scale projects have shown signs of reversal, especially in the EU where more active support for projects that have long been awaiting approvals and commitments have been observed and delayed projects are moving towards FID’s, signaling renewed confidence.

Analyst Group assesses the HydrogenPro are well positioned to capitalize on the green hydrogen projects as FIDs are made, because of the strong partnerships which enable HydrogenPro to deliver on a global scale with a limited cost base, creating a scalable business model. HydrogenPro partners with industry leaders and lower operational costs. The five key partners Mitsubishi, Andritz, Longi, Thermax and J.H.K., validate the technology, expand global reach, and enable bidding on projects of various scales.

The most recent partnership was signed with Thermax in August, which states that Thermax will hold exclusive rights in India to sell, install, commission, and provide after-sales service for alkaline electrolyser systems based on HydrogenPro’s technology. Since the partnership was signed, the Company and Thermax have worked to build a pipeline of projects, with potential to increase order intake in 2026. Analyst Group views positively on the partnership, as it opens the door to one of the fastest-growing hydrogen markets globally. We view Thermax as a strong partner in the Indian market, being a leading conglomerate in the energy and environment sector and a trusted player in the energy transition, thereby constituting yet another strategic partnership for HydrogenPro.

Improved Gross Margin

The gross margin amounted to 54.3%, adjusted for other operating income, a significant improvement in comparison with 22% during Q2-25. In the last quarter, the gross margin was negatively affected by cost provisions on the SALCOS project, and we view the gross margin recognized during Q3-25 as a more normalized level going forward.

Cost Savings Program Completed – Lower Cost Base Expected Going Forward

The EBITDA result amounted to NOK -45.3m (-38.4), a decrease compared to last year, explained by the lower sales but offset by the stronger gross margin. Personnel expenses and other operating expenses increased by 12% Y-Y, amounting to NOK 64.5m (57.4), excluding depreciation and amortization. The increase was due to severance payments related to reduced activity in HydrogenPro’s production facility in China, leading to reduced personnel, in line with the Company’s cost reduction program. We do not expect this effect to be recurring and as the cost savings program has reduced FTEs from 147 by the end of June 2025 to 89 at the end of September 2025, we expect lower personnel expenses in the coming quarters, improving the operating result. HydrogenPro has now finalized the Company’s cost savings program of NOK 40m, excluding all project related expenses, expected to improve efficiency and profitability once order intake and thus revenues are expected to improve.

Stable Cash Positions but Important That Order Intake Picks up

The operating cash flow amounted to NOK -48m, with investments in tangible assets amounting to NOK -5.9m, resulting in free cash flow amounting to NOK -53.9m. The investments are mainly attributable to the expansion of electrode manufacturing capacity in Aarhus, where the total investment budget is NOK 60m, whereof NOK 42m has been invested as of Q3-25.

HydrogenPro’s new electrode technology achieves a substantial improvement in efficiency, increasing energy conversion by up to >12-14%, which saves customers large investments, as electricity accounts for 70-90% of total project costs, and is one of the key factors in determining economic viability. We therefore view electrode technology as an important competitive advantage and see it as rationale to invest in production capacity for the anticipated increasing demand.

The cash position at the end of Q3-25 amounted to NOK 121.4m, positively affected by the equity injection from Longi of approximately NOK 70m. We do expect the underlying cost base, excluding project-based costs, to decrease going forward, which also will decrease the burn rate and still assess the financial position to be strong. Nevertheless, we continue to emphasize that increased order intake and revenues are important to improve profitability and cash flow in the coming years to avoid a strained liquidity position going forward.

In conclusion, Analyst Group views HydrogenPro’s Q3-25 report as a demonstration of resilience in a still-challenging market, with clear signs pointing toward stronger activity in 2026. While order intake remained limited due to project delays, several large-scale hydrogen projects are now progressing toward final investment decisions, providing a foundation for renewed growth. The Company’s strong global partnerships, including the newly signed partnership with Thermax in India, position HydrogenPro to capture future demand through a scalable, low-cost business model. With a stable cash position and ongoing investments in high-efficiency electrode production, Analyst Group considers HydrogenPro well prepared to capitalize on the expected market recovery.

We will return with an updated equity research report of HydrogenPro.

HydrogenPro ASA (“HydrogenPro” or the “Company”) published on August 15^th the Company’s Q2-report for 2025. The following are some key points that we have chosen to highlight in connection with the report:

• Signs of improved market conditions
• Entered into partnership with Thermax
• Cash position and partnership structure strengthened through equity injection from Longi Hydrogen
• Continued Strong Results from the Testing of Next Generation Electrodes
• Successful execution of cost savings program

Continued Challenging Market Conditions Hampers Growth but Clear Signs of Improvement

During the second quarter, HydrogenPro’s revenues amounted to NOK 12.8m (49.9), corresponding to a decrease of 75% Y-Y and 45% Q-Q, where revenues primarily are attributable to deliveries to the Green Steel SALCOS project (100 MW) with the partner Andritz. The decrease Y-Y is attributable to that in Q2-24, HydrogenPro made larger deliveries to the SALCOS project, where the Company now have delivered the main components, however, deliveries of electrodes are currently ongoing. The order backlog amounted to NOK 287m (416) at the end of Q2-25, corresponding to a decrease of -31% Y-Y.

The decreasing order backlog highlights the lack of order intake during Q2-25, reflecting the continued challenging market environment with green hydrogen project delays and cancellations that have been frequent during the past year. This is primarily expected to be attributable to factors such as insufficient funding, rising costs, and infrastructure constraints.

However, the slowdown in large scale projects have shown signs of reversal during Q2-25, especially in the EU where more active support for projects that have long been awaiting approvals and commitments have been observed. Moreover, increasing momentum for smaller, scalable projects have been observed. In Q1-25, HydrogenPro received an order of USD 2.5m.. A flexible strategy with exposure towards large-scale projects while also addressing small-scale projects through the partnership with J.H.K. is particularly relevant when navigating through a challenging market environment as small-scale projects often are characterized by shorter delivery times, potentially reducing revenue volatility over time.

Nevertheless, we have earlier anticipated a higher order intake by this time of the year, and we are likely to reduce our revenue forecasts for 2025 in our upcoming equity research update. However, the signs of reversal for the market for large scale projects as well as an increased focus on smaller projects leading to increased optimism for higher order intake during H2-25.

Furthermore, HydrogenPro recently signed an agreement with Thermax, a leading energy and environment solutions provider and a trusted partner in the energy transition in India. Under the agreement, Thermax will hold exclusive rights in India to sell, install, commission, and provide after-sales service for alkaline electrolyser systems based on HydrogenPro’s technology. Analyst Group views positively on the partnership, as it opens the door to one of the fastest-growing hydrogen markets globally and potential for increased order intake. We view Thermax as a strong partner in the Indian market, thereby constituting yet another strategic partnership. HydrogenPro mentioned that Middle East is a potential large market with increased focus going forward.

Improved EBITDA-result and Cost Savings in Place

The EBITDA-result amounted to NOK -48.4m (-65.5), an improvement of NOK 17.1m Y-Y and NOK 2m Q-Q despite the decrease of revenue, a sign that the implemented cost savings are yielding results, where operating expenses were down 10% both Y-Y and Q-Q. HydrogenPro has executed on the NOK 40m annual cost savings plan targeted to be fully implemented by the end of 2025. HydrogenPro’s partner model, where partners purchase HydrogenPro’s electrolyzers and integrate them into hydrogen production facilities designed for the Company’s end users, not only validates HydrogenPro’s technology in negotiations for large-scale projects but also provides access to an established global sales network that would be difficult to build independently, hence a business model that enables HydrogenPro to scale efficiently while maintaining a relatively low cost base compared to competitors. As a result, Analyst Group expects HydrogenPro to demonstrate solid profitability as order intake, and consequently revenues, is projected to strengthen over the coming years.

Stable Cash Position – Further Strengthened Through Equity Injection After the Period

HydrogenPro’s operating cash flow amounted to NOK -54.4m during Q2-25, relatively closely in line with the EBITDA-result of NOK -48m in the quarter, where most of the difference is attributable to higher inventory levels. The cash position at the end of Q2-25 amounted to NOK 107m, which has been strengthened further in July through the equity injection of NOK 70m from Longi Hydrogen. While securing financing for strategic investments, the capital raise also strengthens the partnerships further, ensuring a shared interest in securing orders moving forward.

By Q2-25, the expanded Aarhus manufacturing facility had entered the test production phase, with full operations anticipated in Q3-25. The total investment is estimated at NOK 60m, of which NOK 35m had been paid by the end of Q2-25, leaving NOK 25m scheduled for payment in H2-25 through capex-investments. All in all, Analyst Group reiterates that the financial position remains strong but emphasizes that increased order intake and revenues is important to improve profitability and cash flow in the coming years.

Continued Strong Results from the Testing of Next Generation Electrodes

During Q2-25, the joint full-scale validation program has been completed together with Andritz in HydrogenPro’s test facility in Herøya, which confirmed the strong performance regarding electrode efficiency and stack design. In the SALCOS project, half of the electrodes will be HydrogenPro’s 3^rd generation, which we see as a validation of the new technology. The tests conducted during 2025 has confirmed that the next generation electrodes deliver improved efficiency, which is one of the most important bases for evaluation from customers, as it reduces the operational costs for plant operators. The strong performance from the validation program therefore secures a continued highly competitive offering, positioning the Company to be considered for all large-scale projects moving forward.

In summary, Analyst Group views HydrogenPro’s Q2-25 report as a demonstration of both resilience and strategic progress despite a still challenging market environment. Although order intake has been weaker than earlier expected, clear signs of recovery in large-scale projects, alongside growing momentum in smaller, faster-to-market projects, support a more optimistic outlook for H2-25. Strategic partnerships, most recently with Thermax in India, are expected to expand HydrogenPro’s global reach and order potential. Furthermore, the successful implementation of cost-saving measures, a strengthened cash position, and promising validation results for the next generation of electrodes collectively reinforce the Company’s competitive positioning and potential for improved profitability in the coming years.

We will return with an updated equity research report of HydrogenPro.

On August 12^th, Hydrogen Pro ASA (“HydrogenPro” or the “Company”) announced that the Company has partnered with Thermax Limited (“Thermax”), a leading energy and environment solutions provider and a trusted partner in energy transition. Under the agreement, Thermax will have exclusive rights in India to sell, install, commission, and provide after-sales service for alkaline electrolyser systems based on HydrogenPro’s technology. HydrogenPro will supply the stacks, along with any future upgrades and technical support. These rights take effect immediately and can be applied to ongoing green hydrogen projects in India.

Analyst Group’s View of the Partnership

HydrogenPro has experienced a challenging market environment during the last couple of years. The primary reasons for this market backdrop can be summarized in rising costs, insufficient investments in the market and infrastructure constraints, as well as reconsidered priorities in the U.S. with regards to green investments. However, Analyst Group reiterate our view that other regions such as EU, Middle East, China and India still present strong growth opportunities with support through directed subsidies. Through the partnership with Thermax, HydrogenPro’s takes a significant step towards the Indian market.

India is currently seen as one of the fastest growing hydrogen markets globally and has an ambitious policy regarding green hydrogen with a target of 5 million tons of annual green hydrogen production by 2030. To reach this production target, the government aims for 15 GW by 2030 of electrolysis capacity. In 2025, USD 66.6m is expected to be awarded in support for green hydrogen projects.

HydrogenPro already has ongoing collaborations with strong, industry-leading partners, reducing the need for an in-house sales team and lowering operational costs. The four previous key partners Mitsubishi, Andritz, Longi, and J.H.K., validate the technology, expand global reach, and enable bidding on projects of all sizes. By adding Thermax to the list of partners, HydrogenPro continues to form partnerships with industry leaders, and the fact that Thermax has chosen HydrogenPro as a partner is, in Analyst Group’s view, a further validation of the Company’s technology.

The partnership will be similar to HydrogenPro’s other partnerships in terms of that Thermax will offer end-to-end integrated green hydrogen solutions on an EPC basis, meaning they are responsible for the engineering, procurement, and construction in projects. Thermax will purchase HydrogenPro’s electrolyzers stacks and integrate them into hydrogen production facilities designed for the Company’s end users. Additionally, Thermax and HydrogenPro will work together to develop advanced solutions tailored to the changing demands of the market. As an important initial initiative, a cutting-edge short stack test station will be set up at Thermax’s Pune facility.

In conclusion, Analyst Group views positively on the partnership, as it opens the door to one of the fastest-growing hydrogen markets globally. We view Thermax as a strong partner in the Indian market, being a leading conglomerate in the energy and environment sector and a trusted player in the energy transition, thereby constituting yet another strategic partnership. While we assess that the market climate for HydrogenPro remain challenging, expansion into a new market such as India, with strong green hydrogen incentives in place, could generate improved momentum in terms of order intake.

About Thermax

Thermax is a leading conglomerate in the energy and environment space and a trusted partner in energy transition. Thermax’s extensive portfolio includes clean air, clean energy, clean water and chemical solutions. Backed by its longstanding industry partnerships across multiple sectors, Thermax has cultivated strong expertise in audit, consulting, execution, and maintenance, coupled with digital solutions, ensuring unified energy and environment management experience. Leveraging its distinctive engineering capabilities, Thermax converts costs to profits while protecting the environment – a win-win for the industry and society at large. Thermax operates 16 manufacturing facilities across India, Europe, and Southeast Asia and has 49 Indian and international subsidiaries.

HydrogenPro published the Company’s interim report for the first quarter of 2025 on May 15, 2025.

Below are some highlights of the report:

• Revenues amounted to NOK 22m (NOK 70m Q4 24 and NOK 4m in Q1 24) – primarily related to deliveries for the SALCOS project (110 MW) with Andritz in Germany
• Gross profit amounted to NOK 7m, representing a 32% gross margin (41% Q4 24) but was impacted by NOK 8.2m in ACES project costs, compared to NOK 17.1m in Q4 2024. When adjusted for these ACES-related expenses, the gross margins for Q1 2025 and Q4 2024 reached 69% and 66%, respectively.
• OPEX of NOK 57m, a decrease of NOK 16m compared to Q4 24, reflecting the cost reduction measures taking effect.
• EBITDA of NOK -50m (NOK -44m Q4 24 and NOK -56m in Q1 2024), corresponding to a margin of -127% (-62% Q4 24).
• Cash balance of NOK 165m compared to NOK 191m at end of Q4 2024 with a capital injection of NOK 68m included from the strategic capital raise of NOK 70m secured from key partners Mitsubishi and Andritz – an additional NOK 70m is expected to be raised from Longi in Q2, although pending approval regarding Chinese regulations on foreign investments.
• HydrogenPro received one confirmed purchase order of USD 2.5m (NOK 26m).
• Backlog amounts to NOK 318m (NOK 305m in Q4 2024).

Successful Delivery and Project Execution

During the first quarter, Hydrogenpro continued delivering to the Green Steel SALCOS project with partner Andritz, demonstrating strong project execution regarding components being delivered on time and meeting complex requirements associated with a large-scale green hydrogen project. Most of the electrolyzer components for the Andritz order have now been delivered, with the remaining parts primarily constituting of the 3^rd generation electrodes.

The strong project execution is particularly important, considering the future potential this partnership presents, as highlighted by a new 100 MW order from Andritz expected to be confirmed in 2025. Andritz announced the receipt of an order for the authority engineering of a 100 MW green hydrogen plant in Rostock, Germany. Subject to the investment decision of the final customer, ANDRITZ expects to receive the notice to proceed with the supply of the plant. Upon receipt of the notice to proceed, ANDRITZ will supply the green hydrogen plant on an EPC (Engineering, Procurement, Construction) basis using HydrogenPro pressurized alkaline technology for the electrolysis process.

Strong Results from the Testing of Next Generation Electrodes

During Q1, a joint full-scale validation program was conducted together with Andritz in HydrogenPro’s test facility in Herøya. The program consisted of 500 testing hours where 50% of electrolyzers was equipped with 2^nd generation electrodes, while 50% was equipped with 3^rd generation electrodes for a direct comparison. The test confirmed the expected breakthrough in the technology where electrode performance improved efficiency with >12-14%. The efficiency parameter is one of the most important bases for evaluation from customers, as it reduces the operational costs for plant operators. The strong performance from the validation program therefore secures a continued highly competitive offering, positioning the Company to be considered for all large-scale projects moving forward.

Also, the partnership with the global leader Andritz, which assembles HydrogenPro’s components and cooperated in the validation program, confirms HydrogenPro’s strategic position regarding maintaining a slim organization while utilizing partners’ core competencies to sustain logistical flexibility and validate improvements in electrolyzer performance.

Confirmed Order

HydrogenPro received one confirmed order amounting to USD 2.5m. Although this represents a small order in comparison with the large-scale projects having been delivered on earlier, the confirmed order highlights an initial success in also targeting small-scale projects beyond the larger ones. A flexible strategy with exposure towards large-scale projects while also addressing small-scale projects through the partnership with J.H.K. is particularly relevant when navigating through a challenging market environment as small-scale projects often are characterized by shorter delivery times, potentially reducing revenue volatility over time. Analyst Group expects more orders of this nature to be secured throughout 2025.

Strong Financial Position

The cash position stands at NOK 165m, compared with NOK 191m in Q4 2024. The decrease is explained by a negative EBITDA of NOK -50m, changes in working capital of NOK -23m and CAPEX of NOK -22m, while the equity raise of NOK 70m from Andritz and Mitsubishi resulted in a net capital injection of NOK 68m to the Company. An additional NOK 70m is expected in Q2 from the capital raise from Longi, awaiting governmental approvement. While securing financing for strategic investments, the capital raises also strengthens the partnerships further, ensuring a shared interest in securing orders moving forward. The latest partnership with Longi also opens the Chinese market for HydrogenPro, which currently constitutes of 2/3 of the global electrolyzer demand.

Due to a challenging market, the Company is implementing cost reduction measures, where HydrogenPro is downsizing in Europe while also reducing the use of external consultants. Furthermore, activity in China is being reduced both in the Tianjin manufacturing plant and the Shanghai office. The cost reduction initiative is expected to save the Company NOK 40m on an annual basis. These measures are expected to be temporary in nature and are a response to the current market environment. The Company remains flexible in scaling up activity quickly when the market improves.

Challenging Market Environment but Signs of a Turning

The first quarter included a market backdrop with several cancellations of previously announced projects, ranging from 50 MW to 200 MW, confirming the challenging market environment observed since 2023. The primary reasons for this market backdrop can be summarized in rising costs, insufficient funding and infrastructure constraints, as well as reconsidered priorities in the U.S. with regards to green investments.

However, regions such as EU, Middle East, China and India still present strong opportunities with support through directed subsidies, exemplified by the European Hydrogen Bank, which has approximately EUR 2.2b earmarked for investments in the coming years.  These regions have a long-term vision of increased usage of green hydrogen, and as HydrogenPro already has presence in Europe and the U.S., as well as exposure towards China through the partnership with Longi, the Company is now looking to increase its focus on India and Middle East with new partnerships expected to be communicated in 2025.

Despite several project cancellations, the Company updated the prioritized sales pipeline, which now amounts to 13.3 GW or USD 4,4b in potential, demonstrating an expanded addressable market in new regions through the partnership with Longi and also the ability to target more types of projects through the partnership with J.H.K.

Strategic Investments

While taking cost reduction measures, targeting operational expenses, HydrogenPro continues to make strategic long-term investments, highlighted by continued investments in the third generations electrodes, strengthening the position for when the hydrogen market returns to a climate with more positive Final Investment Decisions.

HydrogenPro is taking strategic initiatives in upgrading the annual manufacturing capacity for the 3^rd generation electrodes to 350 MW, securing delivery capacity for the SALCOS project as well as for future projects. In parallel with the 350 MW capacity investment in electrodes, HydrogenPro is considering investments to develop a H2 Gigafactory for the 3^rd generation electrodes in 2027. If the Company chooses to proceed, part of the financing for a H2 gigafactory buildout has already been secured through grants from the Danish government amounting to ≈ NOK 240m. A buildout would bring the total capacity to at least 500 MW in annual electrode capacity, matching the current 500 MW capacity of electrolyzer while enabling flexibility with possible spare capacity, to be used as the Company deems most beneficial, possibly selling the electrode spare capacity to external electrolyzer producers and thereby adding new revenue streams.

The positive results from the joint-full scale validation program together with Andritz, in combination with the possibility of future mass production of electrodes, presents a game-changing potential in terms of HydrogenPro’s offering and competitiveness in the market. As HydrogenPro is leading the way in an innovative space that increases energy efficiency and makes large-scale hydrogen projects more cost-efficient, the Company is positioned to receive orders for more large-scale projects in the future.

In summary, while market conditions remain challenging, the Company has secured a stable financial foundation, strengthening the capital base and enabling continued growth-driven activities such as validation of the 3^rd generation electrodes and associated capacity expansion. Through these measures and a further enhanced partnership with industry leaders, HydrogenPro is positioned to capitalize on the strong sales pipeline of 13.4 GW with a leading electrolyzer solution and groundbreaking electrode technology that increase energy efficiency significantly.

Analyst Group initiates equity research coverage on HydrogenPro (“HydrogenPro” or “the Company”), which includes equity research coverage with, among other things, equity research reports with quarterly updates, comments on press releases and CEO interviews.

HydrogenPro is a leader in high pressure alkaline electrolyzers, which are used to produce green hydrogen. Electrolyzers are evaluated on energy efficiency, where HydrogenPro’s latest tests regarding a groundbreaking electrode technology delivers a substantial improvement with an increase up to 14%, setting a new industry benchmark. The Company has strong global partners and has proven its concept by delivering electrolyzers to some of the largest hydrogen projects to date, and HydrogenPro is uniquely positioned to capitalize on expected market growth in green hydrogen during the forecast period.

About HydrogenPro

HydrogenPro, founded in 2013, pioneers green hydrogen technology solutions. Today, the Company is a technology owner and a global original equipment manufacturer specializing in the world’s largest high-pressure alkaline electrolyzer, electrolyzers are essential for production of green hydrogen. In 2021, the Company established in-house manufacturing capacity in China through a joint venture with Tianjin HQY Hydrogen Machinery, today known as HydrogenPro Tianjin. The plant has a 500 MW annual capacity, capable of producing ≈90 electrolyzers stacks. While manufacturing of electrolyzer components takes place in China, the assembly is conducted locally near end-user’s, thereby securing logistical flexibility and compliance with local regulations.

Three Reasons as to Why HydrogenPro is an Attractive Investment Today

Groundbreaking Energy Efficiency

HydrogenPro holds a competitive advantage with the Company’s high-pressure alkaline electrolyzers, achieving 80% energy efficiency – defined as the share of renewable energy converted to hydrogen rather than lost. Higher energy efficiency lowers the plant operator’s operational costs significantly, as electricity accounts for 70-90% of total project costs in green hydrogen production.

Proof of Concept

The Company has successfully delivered electrolyzers for two large-scale projects: 220 MW with an order value of more than USD 50m and 100 MW with EUR 18m. This validates HydrogenPro’s technology, while demonstrating successful execution in manufacturing and delivery capabilities for large-scale, complex, projects. HydrogenPro’s prioritized sales pipeline was recently updated and totals 12,1 GW, and with established proof of concept, the Company is expected to capitalize on this, securing orders and thereby continuing the growth journey.

Strong Partners with Ownership Stake

HydrogenPro has exclusive partnerships with leading industry players in the industry, which entails that HydrogenPro is an exclusive supplier of electrolyzers for their projects. The partners Mitsubishi, Andritz and Longi have extensive experience securing orders for large-scale projects. Additionally, all three have demonstrated confidence in HydrogenPro’s technology by jointly acquiring a 40% ownership stake, of which Longi’s stake is anticipated to be finalized in Q2. This latest investment of NOK 140m secured financing for the Company while strengthening the partnership and positioning HydrogenPro to secure future orders.

HydrogenPro published the Company’s interim report for the fourth quarter of 2024 on February 25, 2025.

Below are some highlights of the report:

• Revenues amounted to NOK 70 million (NOK 127 million) –primarily related to deliveries for the SALCOS project (100 MW) with Andritz in Germany
• Gross margin amounted to NOK 29 million, representing a 41% gross margin (69%)
• OPEX of NOK 73 million, an increase of NOK 13 million compared to Q3 24, of which approximately NOK 9 million were extraordinary costs of a nonrecurring nature
• EBITDA of NOK -44 million (NOK 17 million), corresponding to a margin of -62% (13%)
• Cash balance of NOK 191 million compared to NOK 188 million at end of Q3 2024, the positive figure is primarily explained by changes in working capital amounting to NOK 58 million
• Strategic capital raise amounting to NOK 70 million secured from key partners Mitsubishi and Andritz, and NOK 70 million expected to be raised from Longi, although pending approval regarding Chinese regulations on foreign investments.

Successful Delivery and Project Execution

During the fourth quarter, HydrogenPro made successful deliveries to the Green Steel SALCOS project with the partner Andritz, demonstrating continued strong project execution regarding components being delivered on time and meeting complex requirements associated with a large-scale green hydrogen project. Most of the electrolyzer components for the Andritz order have now been delivered, with the remaining parts primarily related to the 3^rd generation electrodes. Before these are delivered, a joint full-scale validation program is being conducted together with Andritz in HydrogenPro’s test facility in Herøya. One electrolyzer will be equipped with 50% 3^rd generation electrodes and 50% 2^nd generation for a direct comparison. The test starts now and will conclude in 500 testing hours for one month. Positive results are expected and set to confirm the groundbreaking energy efficiency enhancements of 14% previously demonstrated, associated with the Company’s 3^rd-generation electrodes. The partnership with the global leader Andritz, which assembles components and now cooperates in the validation program, confirms HydrogenPro’s strategic position regarding maintaining a slim organization while utilizing partners’ core competencies to sustain logistical flexibility and validate improvements in electrolyzer performance.

Strategic Investments

The fourth quarter included a market backdrop with several cancellations of previously announced projects, ranging from 50 MW to 200 MW, confirming the challenging market environment observed since 2023. The primary reasons for this market backdrop can be summarized in higher inflation, increased capital costs and lack of government funding, which partly is related to the war in Ukraine and reprioritized investments regarding that matter.

However, the Company continues to make strategic investments, strengthening the position for when the hydrogen market returns to a climate with more positive Final Investment Decisions, the seeds of which are being sown through the European Hydrogen Bank, which has approximately EUR 2,2 billion earmarked for investments in the coming years.

HydrogenPro is taking strategic initiatives in upgrading the annual manufacturing capacity for the 3^rd generation electrodes to 350 MW, securing delivery capacity for the SALCOS project as well as for future projects. In parallel with the 350 MW capacity investment in electrodes, HydrogenPro is planning the development of the H2 Gigafactory for the 3^rd generation electrodes with an additional 500 MW in annual electrode capacity, which match the current 500 MW capacity of electrolyzer while enabling flexibility with the additional 350 MW capacity, to be used as the Company deems most beneficial, possibly selling the electrode spare capacity to external electrolyzer producers and thereby adding new revenue streams.

The expected positive results from the joint-full scale validation program together with Andritz, in combination with future mass production of electrodes, are expected to be a gamechanger in terms of HydrogenPro’s offering and competitiveness in the market. Financing for the H2 gigafactory buildout were secured through grants from the Danish government in 2024 amounting to ≈ NOK 240 million. As HydrogenPro is leading the way in an innovative space that increases energy efficiency and makes large-scale hydrogen projects more cost-efficient, the Company is positioned to receive further potential grants in the future.

The strategic investments have additional associated financing through a recently announced capital raise amounting to NOK 70 million from the partners Andritz and Mitsubishi and an additional NOK 70 million from Longi, both with a 22% share price premium. However, the Longi investment is pending on approval regarding Chinese regulations. While securing financing for strategic investments, this capital injection also strengthens the partnerships further, ensuring a shared interest in securing orders moving forward. The latest partnership with Longi also opens the Chinese market for HydrogenPro, which currently constitutes of 2/3 of the global electrolyzer demand.

Despite several project cancellations, the Company updated the prioritized sales pipeline, which now amounts to 12,1 GW or USD 4,1 billion in potential, demonstrating an expanded addressable market through the new partnerships with Longi and J.H.K.

Strong Financial Position

The cash position increased by NOK 3 million to NOK 191 million, excluding the capital raise of NOK 140 million. The increase is explained by changes in working capital amounting to NOK 58 million. Due to a challenging market, the Company is implementing cost reduction measures, where HydrogenPro is downsizing in Europe while also reducing the use of external consultants. Furthermore, activity in China is being reduced both in the Tianjin manufacturing plant and the Shanghai sales office. The cost reduction initiative is expected to save the Company NOK 40 million on an annual basis. These measures are expected to be temporary, and the Company remains flexible in scaling up activity when the market improves.

In summary, while market conditions remain challenging, the Company has secured a stable financial foundation, strengthening the capital base and enabling continued growth-driven activities such as validation of the 3^rd generation electrodes and associated capacity expansion. Through these measures and a further enhanced partnership with industry leaders, HydrogenPro is positioned to capitalize on the strong sales pipeline of 12,1 GW with a leading electrolyzer solution that increase energy efficiency significantly.

Analyst Group will follow up with an equity research report on HydrogenPro.