HydrogenPro ASA (“HydrogenPro” or the “Company”) published on August 15th 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 3rd 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.
