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Yahoo
4 days ago
- Business
- Yahoo
Plug Power's Equipment Weakness Grows: What's the Road Ahead?
Plug Power Inc. PLUG is experiencing increasing challenges across several of its core product categories. In the first quarter of 2025, the company reported a 7% year-over-year decrease in revenues from equipment, related infrastructure and other demand for PLUG's key product offerings, including hydrogen infrastructure, cryogenic equipment, fuel cell systems (GenDrive) and engineered oil and gas equipment, resulted in the decline in revenues. In the quarter, hydrogen infrastructure revenues dropped $6.6 million owing to only one hydrogen site installation being completed compared with three in the same period last unit sales also fell significantly, with 848 units sold in the quarter compared with 1,298 a year ago, leading to a $2.3 million revenue reduction. Cryogenic equipment sales were negatively impacted by slower progress on projects that are nearing completion. Engineered oil and gas equipment sales, acquired through the Frames acquisition, also declined $2.7 in January 2025, Plug Power signed a three-gigawatt (GW) agreement with Allied Green Ammonia in Australia which reflects rising global demand for green hydrogen. If sustained, this momentum could help offset the softness in PLUG's legacy products and reshape its long-term growth trajectory. Snapshot of Plug Power's Peers Among its major peers, Flux Power Holdings, Inc. FLUX reported revenues of $16.7 million in the third quarter of fiscal 2025. Flux Power's total revenues increased 16% year over year, driven by strong demand in both material handling and ground support markets. Flux Power continues to expand its lithium-ion energy storage solutions and SkyEMS software the first quarter of 2025, PLUG's another peer, Bloom Energy Corporation's BE product and service revenues rose 26.5% year over year. Bloom Energy's total revenues surged 38.6% year over year. The growth was fueled by robust demand for Bloom Energy's solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions. The Zacks Rundown for PLUG Shares of Plug Power have lost 16.9% in the year-to-date period against the industry's growth of 13.5%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 3.89X against the industry average of 23.08X. PLUG carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for PLUG's bottom line for second-quarter 2025 has increased in the past 60 days. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG) : Free Stock Analysis Report Flux Power Holdings, Inc. (FLUX) : Free Stock Analysis Report Bloom Energy Corporation (BE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Is Plug Power Stock a Buy Now?
Key Points Plug Power is a key player in the hydrogen economy, developing an end-to-end ecosystem that includes fuel cells, electrolyzers, and hydrogen infrastructure. The company serves major clients, including Amazon and Walmart, and operates hydrogen production plants in Tennessee and Georgia. Plug Power has never recorded a full-year net profit since its initial public offering, and it has significantly diluted its shareholders' interests over that time. These 10 stocks could mint the next wave of millionaires › Plug Power (NASDAQ: PLUG) appears to be a trailblazer in the hydrogen economy, boasting a diverse portfolio of technologies including fuel cells, electrolyzers, and hydrogen infrastructure. The company's vision of a decarbonized future has garnered considerable attention. However, ambition alone does not guarantee success, and the company has a long history of underdelivering for investors. If you're considering scooping up Plug Power stock, here's what you should know first. Plug Power's ambitious end-to-end hydrogen ecosystem Plug Power aims to revolutionize the green hydrogen sector and is creating an end-to-end ecosystem that encompasses every facet of the industry: energy generation, production, storage, and delivery. Plug Power's fuel cell technology harnesses hydrogen and oxygen to power everything from material-handling vehicles, such as forklifts, to power stations and electric delivery vans. It also produces proton exchange membrane (PEM) fuel cell systems like GenDrive and GenSure. PEMs split water into hydrogen and oxygen using clean electricity, or can run in reverse to produe eletricity from hydrogen and oxygen (water is the byproduct). To support the growing demand for hydrogen, Plug Power also manufactures powerful hydrogen liquefiers capable of processing 15 to 30 tons per day, along with advanced cryogenic solutions for safe storage and transportation, including high-tech liquid storage tanks and delivery trailers. It counts retail heavyweights Amazon and Walmart among its primary customers. Plug Power operates hydrogen production plants in Charleston, Tennessee, and Kingsland, Georgia. Additionally, it has a new joint venture with Olin Corporation called Hidrogenii, which operates a 15-ton-per-day hydrogen production plant in St. Gabriel, Louisiana, that began operations earlier this year. The Georgia plant is the largest electrolytic liquid hydrogen production facility in the United States, achieving a record output of 300 metric tons in April 2025. The company aims to increase its total hydrogen capacity to 40 tons per day while reducing fuel costs, since management expects internally producing hydrogen to be one-third the cost of purchasing it. A long history of losing money Funding plays a crucial role in Plug's business, particularly given its long-term financial struggles. Since going public over twenty-five years ago, Plug Power has never recorded a full-year net profit. Last year, the company posted a $2.1 billion net loss. To stay afloat, Plug Power has repeatedly resorted to raising capital through the equity markets, meaning that share dilution has been its primary means of financing its operations. Over the past decade, the average number of diluted shares outstanding has soared from 177 million to over 945 million. This relentless increase in share count means that existing shareholders have seen the value of their investments decrease significantly due to dilution alone. PLUG Revenue (TTM) data by YCharts The company is addressing this with what it calls "Project Quantum Leap," a comprehensive cost-reduction initiative aimed at achieving annual savings of $150 million to $200 million. These measures include workforce reductions, facility consolidations, and cuts to discretionary spending and capital expenditures. Management aims to achieve a positive gross margin by the end of the fourth quarter of this year, with operating income projected to be positive in 2027 and overall profitability expected in 2028. The company has secured much-needed funding Plug has had some positive developments on the funding front. Earlier this year, it secured a $1.66 billion loan from the U.S. Department of Energy to construct up to six state-of-the-art clean hydrogen factories across the United States. In addition to this substantial backing, Plug Power raised nearly $280 million through an upsize underwritten offering in March 2025. This involved the sale of 46,500,000 shares of common stock and prefunded warrants to purchase an additional 138,930,464 shares. The company also established a $525 million secured credit facility with Yorkville Advisors, drawing an initial $210 million tranche in May 2025. This move enabled the company to retire $60 million of its existing convertible debentures, thereby reducing some dilution to shareholders from these instruments. Is Plug Power stock a buy now? Plug Power operates in a clean energy market with promising long-term potential. That said, it has a long history of consistent losses, shareholder dilution, and an inability to translate its opportunity into profitable growth. Analysts project that the company will continue to operate at a loss over the next four years. They anticipate an improvement in its bottom line during that period, from a net loss per share of $2.67 last year to one of $0.59 this year and one of $0.38 in 2026. Plug Power is making progress in expanding its operation and building out its end-to-end hydrogen ecosystem. With that said, the company continues to spend significantly, and its losses have only increased over the past few years; therefore, dilution in the coming years remains a risk. Given its extended history of losses, investors are better off waiting to see visible improvements to Plug Power's bottom line before buying the stock. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $433,181!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,702!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $641,800!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy. Is Plug Power Stock a Buy Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Plug Power Eyes Expansion in Green Energy Sector: Can It Deliver Growth?
Plug Power Inc. PLUG has been plagued with a high cash burn rate and negative gross margins over the past several quarters. Decline in revenues from the sales of hydrogen equipment and related infrastructure has been weighing on its performance. The company has been subject to lower sales of GenDrive units, GenSure stationary backup power units, cryogenic storage equipment and liquefiers. Despite this, PLUG has been considering to scale up its business and invest in hydrogen plants, given the long-term growth potential of the green hydrogen energy market. Going by some estimates the green hydrogen energy market is expected to grow to $30 billion by 2030. PLUG looks forward to capitalize on the opportunity with increased green hydrogen production at its new plant in Georgia, as well as a new joint venture with chemical products company, Olin Corporation OLN in Louisiana. In January 2025, Plug Power also secured a loan guarantee worth $1.66 billion from the U.S. Department of Energy (DOE) to support the construction of six green hydrogen production facilities. This marks a significant step in the expansion of its domestic manufacturing and hydrogen production capabilities. Also, the Senate's revision of the Trump administration's proposed tax bill is expected to offer two-year tax credit extensions for the hydrogen industry. This is likely to help Plug Power remain solvent as it considers scaling up its business. Although, the ongoing challenges, including negative gross margins and cash outflows, are likely to affect PLUG's near-term performance, its investments in the lucrative green hydrogen market and the Quantum Leap project are likely to be beneficial in the long run. Growth Investments in Clean Energy Space from PLUG's Peers Among Plug Power's major peers, Bloom Energy Corporation BE is poised to benefit from its expanding domestic and international commercial capability. In February 2025, Bloom Energy announced an expansion of its longstanding relationship with Equinix. Its fuel cells allow Equinix to generate on-site power at its data centers more sustainably than typical grid-delivered energy. Also, Bloom Energy's fuel cell projects with SK ecoplant in South Korea have significantly contributed to its performance in the past several quarters. Its another peer, FuelCell Energy, Inc. FCEL, remains focused on investing in the development and commercialization of its solid oxide fuel cell platform. This includes strategic collaborations that will allow FuelCell Energy to deploy the technology in energy, hydrogen generation and emissions reduction projects. FuelCell Energy continues to deploy its mature carbonate fuel cell systems, which generate clean electricity, heat and hydrogen, and support carbon capture. The Zacks Rundown for PLUG Shares of Plug Power have gained 14.7% in the past three months compared with the industry 's growth of 48.7%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.83X against the industry average of 20.88X. PLUG carries a Value Score of F. The Zacks Consensus Estimate for PLUG's bottom line for 2025 has been stable in the past 60 days. Image Source: Zacks Investment Research PLUG stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Olin Corporation (OLN): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis Report
Globe and Mail
27-06-2025
- Business
- Globe and Mail
Plug Power's Equipment Revenues Decline: Is the Risk Priced In?
Plug Power Inc. PLUG is facing headwinds in some of its core product categories. In the first quarter of 2025, revenues from equipment, related infrastructure and other products declined 7% year over year to $63.5 million. The decrease in revenues resulted from lower demand for hydrogen infrastructure, cryogenic equipment, fuel cell systems (GenDrive), and engineered oil and gas equipment. In the quarter, hydrogen infrastructure revenues decreased by $6.6 million, owing to one hydrogen site installation completed compared with three completed in the same period last year. GenDrive sales also fell, with just 848 units sold compared with 1,298 units in the prior year, resulting in a $2.3 million revenue decline. Cryogenic equipment sales slipped due to slower progress on projects that are nearing completion. Sales of engineered oil and gas equipment, acquired through the Frames acquisition, also declined by $2.7 million in the quarter. These results show that some of Plug Power's legacy product lines are losing momentum. However, Plug Power's electrolyzer product line surged 581.7% year over year in the first quarter, driven by increased deliveries across North America, Europe and Asia. Also, a recent three gigawatt (GW) deal with Allied Green Ammonia in Australia and more than eight GW in design contracts highlight growing global demand for green hydrogen. If the current pace holds, this growth could help offset weakness in PLUG's legacy product lines and reshape its long-term growth path. Plug's Peers in Equipment Sales Among its major peers, FuelCell Energy, Inc. FCEL reported product revenues of $13.0 million in the second quarter of fiscal 2025. FuelCell's total revenues rose 67% to $37.4 million in the same period, reflecting gains in service agreements. FuelCell continues to deploy its mature carbonate fuel cell systems, which generate clean electricity, heat and hydrogen, and support carbon capture. PLUG's another peer, Bloom Energy Corporation 's BE product and service revenues increased 26.5% year over year in the first quarter of 2025. Bloom Energy's total revenues rose 38.6% year over year. This growth was driven by strong demand for Bloom Energy's solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions. The Zacks Rundown for PLUG Shares of Plug Power have lost 42.8% in the year-to-date period against the industry 's growth of 12.1%. From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.45X against the industry average of 21.16X. PLUG carries a Value Score of F. The Zacks Consensus Estimate for PLUG's bottom line for second-quarter 2025 has increased in the past 60 days. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
27-06-2025
- Business
- Yahoo
Plug Power's Equipment Revenues Decline: Is the Risk Priced In?
Plug Power Inc. PLUG is facing headwinds in some of its core product categories. In the first quarter of 2025, revenues from equipment, related infrastructure and other products declined 7% year over year to $63.5 decrease in revenues resulted from lower demand for hydrogen infrastructure, cryogenic equipment, fuel cell systems (GenDrive), and engineered oil and gas equipment. In the quarter, hydrogen infrastructure revenues decreased by $6.6 million, owing to one hydrogen site installation completed compared with three completed in the same period last year. GenDrive sales also fell, with just 848 units sold compared with 1,298 units in the prior year, resulting in a $2.3 million revenue decline. Cryogenic equipment sales slipped due to slower progress on projects that are nearing completion. Sales of engineered oil and gas equipment, acquired through the Frames acquisition, also declined by $2.7 million in the quarter. These results show that some of Plug Power's legacy product lines are losing Plug Power's electrolyzer product line surged 581.7% year over year in the first quarter, driven by increased deliveries across North America, Europe and Asia. Also, a recent three gigawatt (GW) deal with Allied Green Ammonia in Australia and more than eight GW in design contracts highlight growing global demand for green hydrogen. If the current pace holds, this growth could help offset weakness in PLUG's legacy product lines and reshape its long-term growth path. Among its major peers, FuelCell Energy, Inc. FCEL reported product revenues of $13.0 million in the second quarter of fiscal 2025. FuelCell's total revenues rose 67% to $37.4 million in the same period, reflecting gains in service agreements. FuelCell continues to deploy its mature carbonate fuel cell systems, which generate clean electricity, heat and hydrogen, and support carbon another peer, Bloom Energy Corporation's BE product and service revenues increased 26.5% year over year in the first quarter of 2025. Bloom Energy's total revenues rose 38.6% year over year. This growth was driven by strong demand for Bloom Energy's solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions. Shares of Plug Power have lost 42.8% in the year-to-date period against the industry's growth of 12.1%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.45X against the industry average of 21.16X. PLUG carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for PLUG's bottom line for second-quarter 2025 has increased in the past 60 days. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG) : Free Stock Analysis Report FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report Bloom Energy Corporation (BE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
