HydrogenPro ASA (“HydrogenPro” or the “Company”) published on May 13th 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.
