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Introduction & Market Context
Cavendish Hydrogen ASA (OL:CAVEN) presented its Q2 2025 results on August 28, 2025, revealing a quarter of contrasting developments. The hydrogen fueling infrastructure provider’s stock has continued to face pressure, trading at €7.7, down significantly from €11.6 after its Q1 results when the stock experienced a 25.86% drop.
The company operates in an increasingly challenging hydrogen market environment characterized by uncertain geopolitical conditions, high energy prices affecting customer business cases, and hesitancy from heavy-duty vehicle manufacturers. However, Cavendish highlighted positive regulatory signals, particularly from the Alternative Fuels Infrastructure Regulation (AFIR) in Europe, which mandates hydrogen refueling stations every 200 km and urban node coverage.
Quarterly Performance Highlights
Cavendish Hydrogen achieved record hydrogen dispensing volumes in Q2 2025, with 298,000 kg dispensed, representing a 41% increase year-over-year. This growth was primarily driven by higher utilization in the North American market, where the company reported that the hydrogen supply situation is improving.
As shown in the following chart of quarterly dispensed hydrogen volumes:
The company also highlighted the successful opening of two new fueling stations in California in partnership with a major US customer. These stations have been operational since Q2 2025 and have reportedly maintained close to 100% availability, serving 3,250 vehicles and dispensing approximately 8,740 kg of hydrogen as of August 2025.
The California expansion is illustrated in this image of the new stations:
Additionally, Cavendish appointed a new Chief Commercial Officer during the quarter to position the company for growth, though specific details about this executive were not provided in the presentation.
Financial Analysis
Despite the operational achievements, Cavendish Hydrogen’s financial performance showed concerning trends. Revenue decreased by 39% compared to the same quarter last year, attributed to fewer equipment deliveries and lower project activity, though service business revenues remained stable.
The company’s financial performance is illustrated in the following charts:
EBITDA improved by 32% year-over-year, though the company noted that when adjusted for non-recurring costs related to the IPO in 2024, EBITDA actually declined by 12% due to lower volumes. Management emphasized that good cost control contributed positively to results.
Cavendish’s cash position continued to deteriorate, falling to €28.7 million at the end of Q2 2025, down from €34.5 million in Q1 2025. This cash burn aligns with concerns highlighted in previous analyst coverage about the company’s rapid cash consumption.
The presentation acknowledged that customer decisions are taking longer than expected, though management maintained they are in positive dialogue with existing and potential customers.
Strategic Initiatives & Growth Markets
Cavendish Hydrogen continues to focus on its established markets in Europe, North America, and South Korea rather than expanding into emerging markets like the Middle East and India, which was previously identified as a potential limitation to growth.
The company specifically highlighted Germany as a strategic growth market, citing positive market indications, a supportive policy environment, proven operational success, and good product fit.
The strategic importance of the German market is illustrated here:
Cavendish also provided an update on its global station deployment, noting that in addition to the two completed stations in California, a third one is expected to be completed before the end of 2025. The company is also expanding its European presence with its first station in Italy scheduled for completion in Q3 2025, in time for the February 2026 Olympics, and a fourth station in France with a new customer nearing completion.
The company’s global station deployment is shown in this map:
Outlook & Challenges
Looking ahead, Cavendish Hydrogen described Q2 as "largely as expected" and maintained a cautious outlook for the remainder of the year. The company cited several ongoing market challenges, including:
1. Uncertain geopolitical climate
2. High energy and hydrogen prices affecting customer business cases
3. Lack of commitment from heavy-duty hydrogen vehicle OEMs
4. Incomplete funding structures
Despite these challenges, management expressed a positive long-term market outlook for heavy-duty transportation and believes Cavendish is well-positioned to capitalize on this opportunity. The company continues to emphasize the advantages of hydrogen as a fuel source, including zero emissions, long driving range, short fueling time, and limited grid connection requirements compared to battery electric vehicles.
The company’s summary and outlook is captured in this image:
Cavendish Hydrogen will present its Q3 2025 results on November 13, 2025, where investors will be looking for signs of revenue recovery and improved order intake to support the company’s long-term growth narrative.
Full presentation:
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