Latest news with #ProjectQuantumLeap
Yahoo
28-07-2025
- Business
- Yahoo
Plug Power vs. FuelCell Energy: Which Fuel Cell Stock has Greater Upside?
Plug Power Inc. PLUG and FuelCell Energy, Inc. FCEL are both prominent names operating in the fuel cell technology market. As rivals, both companies are engaged in manufacturing innovative fuel cell product solutions and electrolysis platforms in the United States and companies are poised to benefit from significant growth opportunities in the green hydrogen market due to growing demand for clean energy solutions and government initiatives to decarbonize various sectors. Let's take a closer look at their fundamentals, growth prospects and challenges. The Case for Plug Power Plug Power has been subject to a high cash burn rate and negative gross margins over the past several quarters. Lower revenues from the sales of hydrogen equipment and related infrastructure have been weighing on its performance. The company has been witnessing lower sales of GenDrive units, GenSure stationary backup power units, cryogenic storage equipment and this, PLUG has been focusing on scaling up its business and investing 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 intends to capitalize on the opportunity with increased green hydrogen production at its new plant in Georgia, as well as a new joint venture with Olin Corporation OLN in Louisiana. Also, in January 2025, it 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 hydrogen production Power's strong expertise in providing and installing electrolyzers is underlined by its deployment of substantial proton exchange membrane (PEM) electrolyzer systems to date. This is underlined by its successful PEM electrolyzer deployment at the largest U.S. electrolytic liquid hydrogen production plant in Georgia. PLUG's cost management and supply-chain optimization efforts have also supported it in slowing down its cash burn rate, which declined nearly 50% year over year in first-quarter 2025. In the same quarter, it launched Project Quantum Leap with a target to generate more than $200 million in annualized part of the project, the company stands 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. The Case for FuelCell Energy FCEL continues to receive orders from its customers who need a 24/7 clean energy supply to efficiently run their operations. Earlier this year, the company received a contract to build a 7.4 MW fuel cell power plant in Hartford, CT. The project is expected to add more than $160 million of future revenues to FuelCell Energy's generation backlog. The backlog at the end of second-quarter fiscal 2025 (ended April 2025) was $1.26 billion, reflecting year-over-year growth of 18.7%.The company's strategic partnership with Diversied Energy and TESIAC Corp. is also expected to accelerate its entry into the data center market and expand its penetration in deployed microgrid applications. FuelCell Energy is also working on a global restructuring of its operations in the United States, Canada and Germany. This initiative will lower operating costs, realign resources toward advancing the company's core carbonate technologies and protect its competitive position in the clean energy FCEL has been subject to negative gross margins over the past few quarters. Its gross margin was a negative 26% in the first six months of fiscal 2025. Rising operating costs and expenses have been weighing on its margins and profitability. For instance, in the first half of fiscal 2025, its cost of revenues increased 23% from the year-ago Energy's high debt level remains another concern. Its long-term debt balance at the end of second-quarter fiscal 2025 remained high at $124.1 million. Considering its high debt level, the company's cash and cash equivalents (unrestricted) of $116.1 million do not look impressive. How Does the Zacks Consensus Estimate Compare for PLUG & FCEL? The Zacks Consensus Estimate for PLUG's 2025 sales is $709.3 million, implying year-over-year growth of 12.8%. The consensus estimate for its bottom line is pegged at a loss of 59 cents per share. Image Source: Zacks Investment Research The Zacks Consensus Estimate for FCEL's fiscal 2025 (ending October 2025) sales is approximately $144.6 million, indicating growth of 28.9% year over year. Estimates for its bottom line are pegged at a loss of $6.22 per share. Image Source: Zacks Investment Research Price Performance and Valuation of PLUG & FCEL In the past three months, Plug Power's shares have surged 91.8%, while FuelCell Energy stock has gained 37.4%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 4.13X. In comparison, FuelCell Energy's forward earnings multiple currently sits at a negative 1.06X. Conclusion Plug Power and FuelCell Energy have a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Energy's strength in the fuel cell market and solid backlog level have been diluted by rising costs and expenses, which have been denting its profitability. While PLUG's negative gross margins and cash outflows remain a near-term concern, its strong foothold in the green hydrogen market and growth investments are likely to be beneficial in the long PLUG's Quantum LEAP initiative and strong sales estimates instill investor confidence. Given these factors, PLUG seems a better choice for investors than FCEL currently. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
12-07-2025
- Business
- Yahoo
Plug Power secures new hydrogen supply agreement in US
Hydrogen solutions provider Plug Power has secured a new hydrogen supply agreement from a US-based industrial gas partner until 2030. This enhanced multi-year contract ensures reliable hydrogen for Plug's expanding applications business while aiming to reduce costs and improve cash flows. The extension of this partnership supports Plug's strategy to strengthen margins and operational flexibility while catering to customer needs across more than 275 sites that consume hydrogen. With an increasing number of customer sites relying on its services, Plug is committed to broadening its suite of hydrogen solutions. Plug's expansion efforts include enhancing its domestic generation network. Current operations in Georgia, Tennessee and Louisiana yield a combined capacity of 40t per day of liquid hydrogen production. Additional facilities are underway as part of plans to establish more than 40 new sites by 2025 and accommodate further industry growth from 2026 onwards. Plug CEO Andy Marsh stated: 'This expanded agreement supports our mission to build on our already robust and resilient hydrogen network in the US. 'As we continue to scale our applications business and build long-term partnerships with customers, reliable supply and cost efficiency are critical. This contract is a win for Plug, our customers, our suppliers and our margin profile. The immediate cost reduction complements our progress this year with Project Quantum Leap, focused on cost optimisation and cash flow improvement.' This development follows recent US legislation promoting clean energy initiatives for future market expansion. In June 2025, Plug Power announced a partnership with Allied Green Ammonia (AGA) to develop a new 2GW electrolyser for AGA's sustainable fuel initiative in Uzbekistan. "Plug Power secures new hydrogen supply agreement in US" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
10-07-2025
- Business
- Yahoo
Plug Power secures new hydrogen supply agreement in US
Hydrogen solutions provider Plug Power has secured a new hydrogen supply agreement from a US-based industrial gas partner until 2030. This enhanced multi-year contract ensures reliable hydrogen for Plug's expanding applications business while aiming to reduce costs and improve cash flows. The extension of this partnership supports Plug's strategy to strengthen margins and operational flexibility while catering to customer needs across more than 275 sites that consume hydrogen. With an increasing number of customer sites relying on its services, Plug is committed to broadening its suite of hydrogen solutions. Plug's expansion efforts include enhancing its domestic generation network. Current operations in Georgia, Tennessee and Louisiana yield a combined capacity of 40t per day of liquid hydrogen production. Additional facilities are underway as part of plans to establish more than 40 new sites by 2025 and accommodate further industry growth from 2026 onwards. Plug CEO Andy Marsh stated: 'This expanded agreement supports our mission to build on our already robust and resilient hydrogen network in the US. 'As we continue to scale our applications business and build long-term partnerships with customers, reliable supply and cost efficiency are critical. This contract is a win for Plug, our customers, our suppliers and our margin profile. The immediate cost reduction complements our progress this year with Project Quantum Leap, focused on cost optimisation and cash flow improvement.' This development follows recent US legislation promoting clean energy initiatives for future market expansion. In June 2025, Plug Power announced a partnership with Allied Green Ammonia (AGA) to develop a new 2GW electrolyser for AGA's sustainable fuel initiative in Uzbekistan. "Plug Power secures new hydrogen supply agreement in US" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Business Insider
10-07-2025
- Business
- Business Insider
Here's Why Penny Stock Plug Power (PLUG) Spiked Today
Penny stock Plug Power (PLUG) soared 25% on Wednesday after it disclosed a multi-year extension of its liquid hydrogen supply deal with a major U.S. industrial gas company through 2030. The news helped boost investor sentiment about the hydrogen fuel cell company's ability to improve margins and long-term growth prospects. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. The deal is expected to ensure a stable and reliable hydrogen supply for Plug's expanding applications business that too at lower costs. Overall, the deal supports Plug's growing base of over 275 customer sites and aligns with its cost-cutting initiative, Project Quantum Leap. CEO Andy Marsh called the agreement 'a win for Plug, our customers, our suppliers, and our margin profile.' Interestingly, Plug disclosed plans to launch over 40 new hydrogen sites in 2025. Further, it will expand production capacity at plants in Georgia, Tennessee, and Louisiana, which currently produce 40 tons/day of liquid hydrogen. Legislation Sparks Optimism This extension comes on the heels of recent U.S. energy and tax legislation aimed at growing the clean hydrogen industry. PLUG expects the new policies to boost market growth going forward. Importantly, JPMorgan analyst Bill Peterson sees the new bill as a good sign for Plug Power's future, especially in boosting demand for clean hydrogen. However, the analyst noted the real impact will depend on whether Plug can improve profit margins and slow down its spending in the near term. Is PLUG a Good Stock to Buy? Turning to Wall Street, PLUG stock has a Hold consensus rating based on four Buys, 11 Holds, and four Sells assigned in the last three months. At $1.34, the average Plug Power stock price target implies a 24.72% downside potential.
Yahoo
30-06-2025
- Business
- Yahoo
Plug Power vs. Bloom Energy: Which Fuel Cell Stock Should You Bet On?
Plug Power Inc. PLUG and Bloom Energy Corporation BE are both familiar names operating in the fuel cell technology market. As rivals, both companies are engaged in manufacturing innovative fuel cell product solutions and electrolyzers in the United States and companies have been enjoying significant growth opportunities in the green hydrogen market on account of growing demand for clean energy solutions and government initiatives to decarbonize several sectors. But which one is a better investment today? Let's take a closer look at their fundamentals, growth prospects and challenges to make an informed choice. Plug Power has been witnessing lower sales of hydrogen equipment and related infrastructure, its major source of income. Lower sales of GenDrive units, GenSure stationary backup power units, cryogenic storage equipment and liquefiers have been weighing on the company's performance. The decline in revenues from the sales of hydrogen infrastructure is primarily attributable to the reduced hydrogen site installation activities, partially offset by higher sales of number of hydrogen site installations declined from 52 to 15 in 2024 on a year-over-year basis. In the first quarter of 2025, this number reduced to one from three in the year-ago quarter. This has been adversely impacting its revenues related to the sales of hydrogen major issue that has plagued the company is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 55%, while its operating cash outflow totaled $105.6 million in first-quarter weak liquidity position has compelled PLUG to sell shares to raise funds for its operations and invest in hydrogen plants. In the first quarter, it received $267.5 million as net proceeds from equity sales and the amount totaled $857.9 million in Plug Power offers solid long-term growth opportunities given that the green hydrogen energy market is estimated to grow to $30 billion by 2030. The company's strong expertise in providing and installing electrolyzers is underlined by its deployment of substantial proton exchange membrane (PEM) electrolyzer systems to date. This is underlined by its successful PEM electrolyzer deployment at the largest U.S. electrolytic liquid hydrogen production plant in Georgia. Its cost reduction and supply-chain optimization efforts have also been aiding it in slowing down its cash burn rate, which declined nearly 50% year over year in the first quarter. In the same quarter, PLUG launched Project Quantum Leap, targeting to generate more than $200 million in annualized 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. Bloom Energy manufactures one of the most advanced and versatile fuel cell energy platforms. With approximately 1.4 GW of BE's Energy Server systems deployed in more than 1,000 locations and nine countries, its fuel cell platform empowers businesses, essential services, critical infrastructure, utilities and communities with resilient, reliable and sustainable energy company is poised to benefit from its expanding domestic and international commercial capability. BE's fuel cell deployments have very high power density, 100 megawatts (MW) per acre. This allows it to meet the rapid electricity demand growth from the data 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. The latest collaboration should further strengthen BE's position in the rapidly evolving renewable energy Korea is a very important market for Bloom Energy and ongoing projects in this country continue to contribute to its earnings. BE's fuel cell projects with SK ecoplant in South Korea have significantly contributed to its performance in the past several company's ability to generate healthy margins also adds to its strength. In first-quarter 2025, Bloom Energy's gross margin expanded 11 percentage points to 27.2% from the year-ago the company has been grappling with rising costs and expenses of late, which might hurt its profitability. In the first quarter, BE's cost of revenues surged 20% year over year, while its total operating expenses increased 23.8%. As a percentage of revenues, the metrics remained high at 72.8% and 33.1%, respectively. The Zacks Consensus Estimate for PLUG's 2025 sales is $715.4 million, implying year-over-year growth of 13.8%. The consensus estimate for its bottom line is pegged at a loss of 59 cents per share. Image Source: Zacks Investment Research The Zacks Consensus Estimate for BE's 2025 sales is approximately $1.8 billion, indicating growth of 19% year-over-year. Its earnings per share (EPS) are pegged at 42 cents per share, implying year-over-year growth of 50%. Image Source: Zacks Investment Research In the past year, Plug Power's shares have lost 49.1%, while Bloom Energy stock has surged 95.1%. Image Source: Zacks Investment Research From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.34X. In comparison, Bloom Energy's forward earnings multiple currently sits at 38.22X. Image Source: Zacks Investment Research Plug Power and Bloom Energy have a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks the significant dip in PLUG stock is concerning, its strong foothold in the green hydrogen market, innovative product portfolio and the Quantum Leap project are likely to be beneficial in the long run. The ongoing challenges, including lower sales of hydrogen infrastructure and negative gross margins and cash outflows, are likely to continue impacting the company's performance in the short contrast, Bloom Energy's strength in the fuel cell and electrolyzer markets, along with its growth investments and strategic partnerships, bodes well for strong growth in the quarters ahead. Additionally, the company's strong sales and earnings estimates instill investor confidence. Given these factors, BE seems a better pick for investors than PLUG currently. 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 Bloom Energy Corporation (BE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
