Latest news with #PLUG
Yahoo
3 days ago
- Business
- Yahoo
Will the Cash Burn Reduction Strategy be a Game Changer for Plug Power?
Plug Power Inc. PLUG has been plagued by its inability to turn a profit, which has required it to raise outside capital for funding its operations. The company has been persistently suffering due to a high cash burn rate and negative gross margins over the past several this, the leading hydrogen company's first-quarter 2025 results showed some signs of recovery. PLUG generated revenues of $133.7 million, an increase of 11.1% year over year, driven by growth in electrolyzer deliveries, sustained demand in materials-handling and the ongoing deployments in its cryogenic platform. However, PLUG's inability to generate positive gross margins and cash inflows over the long term has been a major the first quarter of 2025, the company incurred a net loss of almost $197 million (21 cents per share), which was more than its revenues. On a positive note, the metric reflected an improvement from $295.6 million loss it reported in the year-ago quarter. Meanwhile, its operating cash outflow totaled $105.6 million in first-quarter 2025 compared with $167.7 million in year-ago recorded a gross margin of negative 55% in the first quarter compared with a gross margin of negative 132% in the year-ago-quarter. Although negative, the gross margin improvement was driven by the its cost reduction and supply-chain optimization efforts, price increases and progress in leveraging its hydrogen efforts aided Plug Power to slow down its cash burn rate in the quarter, which declined nearly 50% year over year. In first-quarter 2025, PLUG launched Project Quantum Leap, targeting to generate more than $200 million in annualized savings. As part of the project, it expects to benefit from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform. It expects the project to boost its cash flow and reduce the cash burn rate in the quarters ahead. Among Plug Power's major peers, FuelCell Energy, Inc. FCEL is a well-known producer of stationary fuel cell and electrolysis platforms that helps in decarbonization of power and hydrogen production. Exiting second-quarter fiscal 2025, FuelCell Energy had cash and cash equivalents (unrestricted) of $116.1 million compared with the current portion of long-term debt of $17.1 million. In the first six months of fiscal 2025, FuelCell Energy used net cash of $75.6 million from operating activities, down 21% year over another peer, Bloom Energy Corporation BE is a leading provider of solid-oxide fuel cell systems for on-site power generation. Bloom Energy exited first-quarter 2025 with cash and cash equivalents of $794.8 million, higher than $584.4 million of current liabilities. Bloom Energy used net cash of $110.7 million from operating activities, down 24.8% year over year. Shares of Plug Power have lost 59.1% in the year-to-date period compared with the industry's decline of 8.3%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 1.69X against the industry average of 22.83X. 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 and 2025 has increased 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. 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 Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
PLUG Q1 Earnings Call: Revenue Beat Estimates, Europe and Cost Cuts in Focus
Fuel cell technology Plug Power (NASDAQ:PLUG) exceeded the market's revenue expectations in Q1 CY2025, but sales rose 11.2% year on year to $133.7 million. Is now the time to buy PLUG? Find out in our full research report (it's free). Revenue: $133.7 million (11.2% year-on-year growth) Revenue Guidance for Q2 CY2025 is $160 million at the midpoint, above analyst estimates of $158.1 million Market Capitalization: $982.2 million Plug Power's first quarter results reflected renewed momentum in its material handling business and operational progress in hydrogen production. Management pointed to a major initial order from a key customer, as well as expanded partnerships in Europe, as drivers of business activity. CEO Andy Marsh noted the Louisiana hydrogen plant was commissioned on schedule, joining existing facilities in Georgia and Tennessee to boost internal production capacity. Plug Power launched its 'Quantum Leap' cost-saving program, which management claims has already realized a significant portion of targeted savings across manufacturing, logistics, sourcing, and overhead. Marsh emphasized, 'Our Q1 cash burn was down nearly 50% year-over-year and with Quantum Leap, we expect further reductions in cash burns in future quarters.' The company also raised equity and secured structured financing to reinforce liquidity amid industry headwinds. Looking ahead, Plug Power's outlook centers on expanding its presence in Europe's rapidly developing electrolyzer market, while managing uncertainties in U.S. policy. Management highlighted an active project pipeline in Europe, where new regulatory mandates and funding programs are supporting large-scale green hydrogen adoption. Jose Luis Crespo, General Manager of European operations, explained, 'Europe is a fully active electrolyzer market and Plug is in the pole position on project visibility, regulatory fit and delivery readiness.' However, Marsh cautioned about evolving U.S. energy policy, particularly surrounding hydrogen tax credits and tariffs, which may affect domestic project economics. The company is closely monitoring legislative developments and expects European projects to contribute meaningfully to bookings and revenue over the next 18 to 24 months. Plug Power's management attributed quarterly performance to progress in manufacturing efficiency, cost control initiatives, and European market expansion, while also noting policy uncertainties impacting U.S. operations. Cost Reduction Initiatives: The Quantum Leap program was launched to achieve over $200 million in annualized run-rate cost savings, focusing on manufacturing, sourcing, logistics, and SG&A. Management said most targeted savings have already been executed, leading to a nearly 50% year-over-year reduction in cash burn and further improvements expected. European Electrolyzer Momentum: Plug Power expanded its European presence, positioning itself for large-scale projects supported by regulatory mandates, funding incentives, and enforceable compliance deadlines. The company is actively participating in hydrogen projects across Denmark, Spain, Portugal, and the UK, emphasizing its 'full stack offering' and local engineering teams. Hydrogen Production Ramp-Up: The company commissioned its Louisiana hydrogen plant on time, increasing internal production capacity alongside facilities in Georgia and Tennessee. Plug Power highlighted improved operational efficiency at these sites, with the Georgia plant achieving record production and Louisiana benefiting from lessons learned in earlier builds. Customer and Market Diversification: Management reported both expansion with existing material handling customers and penetration into new accounts, including new projects with logistics firms and cold chain operators in Europe. These activities are seen as supporting future revenue stability. Tariff and Policy Mitigation: Recent U.S. tariffs on Chinese imports impacted some core product lines, prompting a multi-pronged strategy: adding potential surcharges, dual sourcing, product redesign, and further geographic diversification. Management emphasized that the electrolyzer platform is minimally affected due to its non-Chinese content. Plug Power's guidance is driven by European market expansion, continued cost reductions, and navigation of U.S. policy changes affecting hydrogen incentives and tariffs. European Project Pipeline: Management sees Europe as the most active opportunity for electrolyzer sales, with enforceable mandates and funding programs supporting sustained growth. The company expects multi-gigawatt contribution to bookings and revenue in the next 18 to 24 months as projects move from backlog to commissioning. Continued Cost Discipline: Plug Power aims to reach gross margin breakeven by year-end, supported by further reductions in cash burn through the Quantum Leap savings program. Management believes discipline in manufacturing and sourcing will help mitigate external cost pressures and improve profitability. U.S. Policy and Tariff Uncertainty: Ongoing debate around U.S. clean energy tax credits (such as Section 45V) and increased tariffs on Chinese components introduce uncertainty for domestic project economics. Plug Power is closely monitoring legislative developments and has implemented mitigation strategies, but acknowledges potential impacts on future U.S. projects. In the coming quarters, the StockStory team will watch (1) how Plug Power executes on its European electrolyzer project pipeline and converts backlog into revenue; (2) the company's ability to achieve further cost reductions and make progress toward gross margin breakeven; and (3) the impact of evolving U.S. policy and tariffs on hydrogen project economics. Developments around the Texas hydrogen facility and broader adoption of hydrogen in material handling will also be important signposts. Plug Power currently trades at a forward price-to-sales ratio of 1.1×. Should you double down or take your chips? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
4 days ago
- Business
- Yahoo
PLUG Q1 Earnings Call: Revenue Beat Estimates, Europe and Cost Cuts in Focus
Fuel cell technology Plug Power (NASDAQ:PLUG) exceeded the market's revenue expectations in Q1 CY2025, but sales rose 11.2% year on year to $133.7 million. Is now the time to buy PLUG? Find out in our full research report (it's free). Revenue: $133.7 million (11.2% year-on-year growth) Revenue Guidance for Q2 CY2025 is $160 million at the midpoint, above analyst estimates of $158.1 million Market Capitalization: $982.2 million Plug Power's first quarter results reflected renewed momentum in its material handling business and operational progress in hydrogen production. Management pointed to a major initial order from a key customer, as well as expanded partnerships in Europe, as drivers of business activity. CEO Andy Marsh noted the Louisiana hydrogen plant was commissioned on schedule, joining existing facilities in Georgia and Tennessee to boost internal production capacity. Plug Power launched its 'Quantum Leap' cost-saving program, which management claims has already realized a significant portion of targeted savings across manufacturing, logistics, sourcing, and overhead. Marsh emphasized, 'Our Q1 cash burn was down nearly 50% year-over-year and with Quantum Leap, we expect further reductions in cash burns in future quarters.' The company also raised equity and secured structured financing to reinforce liquidity amid industry headwinds. Looking ahead, Plug Power's outlook centers on expanding its presence in Europe's rapidly developing electrolyzer market, while managing uncertainties in U.S. policy. Management highlighted an active project pipeline in Europe, where new regulatory mandates and funding programs are supporting large-scale green hydrogen adoption. Jose Luis Crespo, General Manager of European operations, explained, 'Europe is a fully active electrolyzer market and Plug is in the pole position on project visibility, regulatory fit and delivery readiness.' However, Marsh cautioned about evolving U.S. energy policy, particularly surrounding hydrogen tax credits and tariffs, which may affect domestic project economics. The company is closely monitoring legislative developments and expects European projects to contribute meaningfully to bookings and revenue over the next 18 to 24 months. Plug Power's management attributed quarterly performance to progress in manufacturing efficiency, cost control initiatives, and European market expansion, while also noting policy uncertainties impacting U.S. operations. Cost Reduction Initiatives: The Quantum Leap program was launched to achieve over $200 million in annualized run-rate cost savings, focusing on manufacturing, sourcing, logistics, and SG&A. Management said most targeted savings have already been executed, leading to a nearly 50% year-over-year reduction in cash burn and further improvements expected. European Electrolyzer Momentum: Plug Power expanded its European presence, positioning itself for large-scale projects supported by regulatory mandates, funding incentives, and enforceable compliance deadlines. The company is actively participating in hydrogen projects across Denmark, Spain, Portugal, and the UK, emphasizing its 'full stack offering' and local engineering teams. Hydrogen Production Ramp-Up: The company commissioned its Louisiana hydrogen plant on time, increasing internal production capacity alongside facilities in Georgia and Tennessee. Plug Power highlighted improved operational efficiency at these sites, with the Georgia plant achieving record production and Louisiana benefiting from lessons learned in earlier builds. Customer and Market Diversification: Management reported both expansion with existing material handling customers and penetration into new accounts, including new projects with logistics firms and cold chain operators in Europe. These activities are seen as supporting future revenue stability. Tariff and Policy Mitigation: Recent U.S. tariffs on Chinese imports impacted some core product lines, prompting a multi-pronged strategy: adding potential surcharges, dual sourcing, product redesign, and further geographic diversification. Management emphasized that the electrolyzer platform is minimally affected due to its non-Chinese content. Plug Power's guidance is driven by European market expansion, continued cost reductions, and navigation of U.S. policy changes affecting hydrogen incentives and tariffs. European Project Pipeline: Management sees Europe as the most active opportunity for electrolyzer sales, with enforceable mandates and funding programs supporting sustained growth. The company expects multi-gigawatt contribution to bookings and revenue in the next 18 to 24 months as projects move from backlog to commissioning. Continued Cost Discipline: Plug Power aims to reach gross margin breakeven by year-end, supported by further reductions in cash burn through the Quantum Leap savings program. Management believes discipline in manufacturing and sourcing will help mitigate external cost pressures and improve profitability. U.S. Policy and Tariff Uncertainty: Ongoing debate around U.S. clean energy tax credits (such as Section 45V) and increased tariffs on Chinese components introduce uncertainty for domestic project economics. Plug Power is closely monitoring legislative developments and has implemented mitigation strategies, but acknowledges potential impacts on future U.S. projects. In the coming quarters, the StockStory team will watch (1) how Plug Power executes on its European electrolyzer project pipeline and converts backlog into revenue; (2) the company's ability to achieve further cost reductions and make progress toward gross margin breakeven; and (3) the impact of evolving U.S. policy and tariffs on hydrogen project economics. Developments around the Texas hydrogen facility and broader adoption of hydrogen in material handling will also be important signposts. Plug Power currently trades at a forward price-to-sales ratio of 1.1×. Should you double down or take your chips? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
19-05-2025
- Business
- Yahoo
Plug Power Rebounds as CFO Backs Stock Post-Earnings
Plug Power (NASDAQ:PLUG) rebounds as CFO Paul Middleton buys 350,000 shares at ~$0.72, underlining insider confidence amid a steep post-earnings sell-off. After its Q1 2025 report showed an $0.30 per-share losswider than analysts' $0.25 consensusPlug posted an 11% year-over-year revenue uptick to $133.7 million and ramped hydrogen output to 40 tons/day across three plants. Warning! GuruFocus has detected 8 Warning Signs with PLUG. Middleton's ~$250,000 open-market buy on May 16 underscores my belief in the company's financial strength and growth potential, he said, just days after PLUG tumbled 22% between May 1215 on the earnings miss and Morgan Stanley's cut to Underweight with a $0.50 target. Beyond production gains, Plug is chasing gains in its electrolyzer and fuel-cell divisions but needs $100200 million more before drawing on its first DOE loan, per Morgan Stanley. Meanwhile, Clear Street warns that the House GOP's clean-energy tax proposalif it strips the 45V hydrogen production credit for projects starting after 2025could be a negative catalyst unless Plug secures more international electrolyzer orders, cuts costs and lifts margins. Why It Matters: Middleton's buy signals that insiders see value after the pullback, but funding gaps and policy shifts still pose execution risks for a company burning cash to scale clean-fuel tech. This article first appeared on GuruFocus.
Yahoo
14-05-2025
- Business
- Yahoo
JP Morgan Signals Caution On Plug Power's Near-Term Challenges, Withdraws Price Forecast
JP Morgan analyst Bill Peterson reiterated a Neutral rating on Plug Power, Inc. (NASDAQ:PLUG) but has withdrawn the price forecast. On May 12, 2025, the company reported first-quarter revenue of $133.67 million, beating analyst estimates of $132.16 million and a loss of 21 cents per share, missing analyst estimates for a loss of 19 cents per share. Plug Power guided for second-quarter revenue in the range of $140 million to $180 million, versus estimates of $132.16 million, signaling confidence in continued demand analyst adjusted its second-quarter revenue estimates towards the lower end of the company's guidance range at $150 million (down from $156 million prior). Peterson has also slightly reduced the electrolyzer growth projections for the year, anticipating potential deal delays into 2026. Consequently, the analyst lowered the full-year revenue estimate to $729 million (from $756 million previously). The analyst also factored in Plug Power's need to raise an additional $100 million to $200 million to bridge the funding gap required for the initial drawdown of its Department of Energy (DOE) loan, which may occur later this year or in early 2026. Overall, the analyst says that Plug Power has significant potential for future growth through expansion into new markets, geographies, and the green hydrogen sector. However, the company currently faces near-term challenges related to liquidity, margin improvement, and the availability of hydrogen, which is impacting its current outlook. Investors can gain exposure to the stock via Global X Hydrogen ETF (NASDAQ:HYDR). Price Action: PLUG shares are down 3.91% at $0.78 at the last check on Wednesday. Image via Shutterstock Date Firm Action From To Mar 2022 Canaccord Genuity Maintains Hold Mar 2022 JP Morgan Maintains Overweight Mar 2022 RBC Capital Maintains Outperform View More Analyst Ratings for PLUG View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? PLUG POWER (PLUG): Free Stock Analysis Report This article JP Morgan Signals Caution On Plug Power's Near-Term Challenges, Withdraws Price Forecast originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
