HydrogenPro ASA (“HydrogenPro” or the “Company”) published on November 14th 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 3rd 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.
