PowerCell sales fall 61% in third quarter as loss widens to 34.2 million kronor
Key Facts
Hydrogen fuel cell company PowerCell's sales fell 61% in the third quarter of 2026, as losses widened and its gross margin declined year on year. The company said in its earnings statement that net sales totalled 33.1 million Swedish kronor, compared with 85.8 million kronor in the same period a year earlier. Its net loss widened to 34.2 million kronor from a loss of 15.3 million kronor a year earlier. The company reported an operating loss of 33.7 million kronor, compared with 14.4 million kronor in the third quarter of 2025. Gross margin fell to 27.5% from 38.6% in the comparable period, with the sales contraction accompanied by a decline in gross profitability.
Management attributed the weak performance to automotive royalties falling short of expectations, alongside lower sales volumes. It said in its quarterly report that supply chain delays coincided with increased production of one of its platforms. These delays pushed sales into the fourth quarter, adding pressure on revenue for the reported period. Meanwhile, cash flow from operating activities improved to negative 1.2 million kronor from negative 39.4 million kronor a year earlier. The reduction in negative operating cash flow came despite wider net and operating losses during the quarter.
Revenue weakness extends back to the second quarter of the year, when PowerCell reported sales of 37.0 million kronor, compared with 130.0 million kronor a year earlier. The year-on-year decline at the time was 72%, according to the earnings statement for that period. Second-quarter gross margin was 10.4%, compared with 61.6% in the corresponding period a year earlier. The third-quarter margin thus improved from the previous quarter, while sales remained below their second-quarter level. In an earlier reaction to the second-quarter results, Investing reported on 16 July 2026 that the company's shares fell 6.35%.
On orders, PowerCell announced a follow-up marine order worth 27 million kronor for GMI Group during October. The order covers fuel cell systems and engineering services for two additional cargo vessels powered by electricity generated from hydrogen. In August, the company announced another order worth about 21 million kronor from the German Aerospace Center. That order involves supplying an integrated fuel-to-electricity system for a marine testing project in Kiel. Alongside marine applications, the company announced a contract in July to supply fuel cell systems to ECL for an artificial intelligence data centre in California.
On partnerships, PowerCell announced on 21 October 2026 a non-binding memorandum of understanding with Bosch on a joint initiative in large-scale power generation. The memorandum envisages granting Bosch additional licensing rights in exchange for 5 million euros. The company stressed that the licence expansion and payment remain conditional on a definitive agreement being signed. It said in its statement: "The parties intend to enter into a definitive agreement during the fourth quarter of 2026." The proposed payment is therefore tied to completion of the agreement, under the terms the company announced for the initiative.
Looking ahead, management expects its measures to lower annual costs by about 50 million kronor in 2027. This estimate concerns the annual cost level the company is targeting through its cost-cutting measures. The California data centre contract is worth about 30 million kronor, according to PowerCell's announcement. Deliveries under the contract are scheduled to be completed by the end of 2026. The financial calendar published in the company's previous report set 12 February 2027 as the date for releasing its fourth-quarter report and full-year results for 2026.