Plug Power's Equipment Revenues Decline: Is the Risk Priced In?
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 (zacks.com).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
7 minutes ago
- National Post
Great Clips, Inc. Names Rob Goggins President and Chief Executive Officer
Steve Hockett Retires Following 37-Year Career at Great Clips, Inc. That Began as Franchisee; Kerry Bundy Promoted to Chief Legal Officer Article content MINNEAPOLIS — Great Clips, the world's largest salon brand, today announced the promotion of Rob Goggins to President and Chief Executive Officer effective January 1, 2026, succeeding Steve Hockett, who will retire at the end of 2025. Article content Article content 'We are excited to welcome Rob Goggins as the next CEO of Great Clips, Inc. to guide our future success and continue to grow our position as the world's leading salon brand,' said Rhoda Olsen, Vice Chair of the Board for Great Clips, Inc. 'We are confident that Rob's long-standing franchisee experience and his understanding of the Great Clips brand will allow him to uniquely execute strategic, growth-driving initiatives to continue accelerating salon-level results for our 600+ franchisees across the United States and Canada.' Article content Over the last seven years as President of Great Clips, Inc., Rob has overseen expansion, talent, learning and development, business intelligence and technology, operations, legal, finance, and marketing and communications. During that time, Rob has led a series of initiatives focused on integrating innovative technologies and enhancing operations to support franchisees, stylists and the customer experience. Recent initiatives include the launch of ReadyNext® text alerts, updates to the Great Clips mobile app that has surpassed 25 million downloads, virtual training options for stylists and the introduction of a remodeled design for salons across the U.S. and Canada. Prior to serving as President, Rob held a variety of leadership positions at Great Clips, Inc. including Chief Operating Officer, Senior Vice President of Real Estate and Development, and Vice President of Development. Article content 'I would also like to thank and recognize Steve Hockett for his tremendous contributions not only as CEO but for his more than 35 years working across various aspects of our business to deliver strong results for our brand and franchisees,' continued Olsen. 'Under Steve's leadership, Great Clips generated 61 consecutive quarters of salon sales growth, helped our franchisees manage through and ultimately thrive following a global pandemic as well as extend our brand into culturally relevant partnerships such as the National Hockey League, College Football Playoff, and March Madness to connect with millions of consumers.' Article content Hockett began his Great Clips career as a franchisee in 1988 before being hired by Great Clips, Inc. in 1992 as a Marketing Manager and later serving as Regional Director and Vice President of Operations. After serving as president of FranChoice, Inc. and then Rapid Refill Corp., he rejoined Great Clips, Inc. in 2008 as Vice President of Operations and was named Chief Executive Officer in 2018. Article content Article content Additionally, Kerry Bundy will be promoted from Vice President of Legal, General Counsel and Corporate Secretary to Chief Legal Officer, reporting to Goggins. In addition to continuing to lead the legal, franchise administration, and compliance functions, Kerry will take on an expanded role in franchise industry government relations. Kerry previously worked for more than 20 years at the Faegre Drinker law firm, including serving on their management board. Article content About Great Clips, Inc. Article content Great Clips, Inc. was established in 1982 in Minneapolis. Today, Great Clips has over 4,400 salons throughout the United States and Canada, making it the world's largest salon brand. Great Clips is 100 percent franchised, and salons are owned locally by more than 600 franchisees across the U.S. and Canada. Great Clips franchisees employ more than 30,000 stylists. Great Clips franchised salons provide value-priced, high-quality haircare for men, women and children. Getting a great haircut at a Great Clips salon is more convenient than ever with Article content , Article content ReadyNext® text alerts Article content and Article content Clip Notes Article content ®. To check in online, visit Article content Article content Article content Article content Article content Contacts Article content Media Contact: Article content Article content Great Clips, Inc. Article content Article content Heather Leiferman Article content Article content
CTV News
7 minutes ago
- CTV News
EllisDon chosen for first phase of Fancsy Family Hospital project
EllisDon has been chosen as the construction manager to complete the first phase of the Fancsy Family Hospital project. The first phase will see construction of an administration centre with an auditorium, simulation training centre, classrooms, and office space for support staff, a multi-level parking garage, and essential site infrastructure that will support future phases for the project. Windsor Regional Hospital (WRH) said work will take around three years to complete and will be the first visible step of it. It added that elements were designed to blend with the main hospital build. The ground is expected to be broken in early 2026 for the first phase. 'This announcement is another exciting and tangible step toward delivering the new state-of-the-art hospital our community has been waiting for,' said Karen Riddell, acting president, CEO, and chief nursing executive at WRH. 'By selecting EllisDon, we are partnering with a team that has a proven track record in delivering complex healthcare infrastructure. This early work will set the stage for the full build and bring us closer to a facility that will meet the needs of our patients, families, and staff for decades to come.'
CTV News
7 minutes ago
- CTV News
Canadian venture capital deals tumble as investors wait out uncertainty: expert
Canadian venture capitalists have been less active when it comes to dealmaking this year, according to one expert who says economic uncertainty has kept many investors from expanding their portfolios. 'It's uncertain, and it's no surprise that Canadian investors are experiencing it,' David Kornacki, director of data and product at the Canadian Venture Capital & Private Equity Association (CVCA), told BNN Bloomberg in an interview on Thursday. 'There's uncertainty just in overall macroeconomic trends but also, we're seeing a pullback; Canadian venture capital is a risky investment.' Kornacki said that in 2025, investors have been less willing to take on that risk, adding that there's been a noticeable drop in funding for startups in the early stages of capital raising. 'In the pre-seed, seed and Series A stages, there is a pullback, which does drop down investment counts across the board,' he said. Much like during the COVID-19 pandemic period, investors this year have been more likely to shore up their existing portfolios rather than attempting to expand them given the uncertainty that's spread to virtually all markets and sectors due to ongoing global trade conflicts, said Kornacki. 'That's what we're seeing as well, we're seeing investors make sure that their current portfolio is reducing burn, that they're remaining capital efficient and that they have capital on hand to make sure that their portfolio can ride out this next phase of uncertainty,' he said. 'So definitely we're seeing a reduced number of deals and dollars invested, specifically on the large scale. Mega deals were down; we only had about eight mega deals, what we define as $50 million-plus. We're definitely seeing investors being more cautious.' Despite the across-the-board slowdown in venture capital deals this year, life sciences is one sector that seems to be bucking the trend, Kornacki noted. 'We saw this, again, during the times of COVID-19, which made more sense given that was a health crisis, and we saw more investment into healthcare, but we're seeing that again this year,' he said. 'It seems health and life sciences is a resilient sector that doesn't ebb and flow as much as other sectors, specifically when it comes to impact on the supply chain and macroeconomic trends.' Another positive development within Canada's venture capital space is the broadening of deals across regions outside of the country's three largest provinces, Kornacki explained. 'Back when I first joined the CVCA about eight years ago, we saw investment across basically three provinces,' he said. 'Now we're seeing investment across the board, across the country in the Prairies as well and in the East Coast and the Maritimes. It's exciting to see that investment is more cross-Canada versus the Ontario, Quebec and B.C. markets.'
