HydrogenPro ASA (“HydrogenPro” or the “Company”) published on February 27th 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.
