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Plug Power Inc. Stock Price: Quote, Forecast, Splits & News (PLUG)
Earnings
Report Date
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Rev Estimate
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Avg 1d Change
3.3%
Report Period
Q1 2025
EPS Estimate
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Implied Move 1d
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Transcript
5m 37s
Welcome to the twenty twenty five first quarter earnings call. This call will include forward looking statements. These forward looking statements contain projections of our future results of operations, or of our financial position or of our other forward looking information. We intend these forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933 and section 21 e of the Securities Exchange Act of 1934. We believe that it is important to communicate our further expectations to investors. However, investors are cautioned not to unduly rely on forward looking statements and such statements should not be read or understood as a guarantee of future performance or results. Such statements are subject to risks and uncertainties, that could cause actual results or performance to differ materially from those discussed as a result of various factors, including but not limited to risks and uncertainties discussed under Item 1A Risk Factors and our annual report on Form 10 k. For the fiscal year ending 12/31/2024 our quarterly report on Form 10 q, for the quarter ended 03/31/2025. As well as other reports we file from time to time with the SEC.
7m 3s
These forward looking statements speak only as of the date in which the statements are made. And we do not undertake or intend to update any forward looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug's CEO, Andy Marsh.
7m 21s
Good afternoon, everyone. Thank you for joining today. I am here with Paul, Sanjay, and Jose. I'm happy to report that in q one, Plug met the financial and operational targets we set out. Delivering a quarter of solid execution in a still turbulent macro environment. Revenue came in at a hundred and $34,000,000 in line with guidance. But more importantly, we made real progress on our path to profitability. Improving margins, reducing cash burn, and continuing to strengthen execution across all business lines. We are projecting between a hundred and 40 to a hundred $80,000,000 in revenue in the second quarter. Let me start with some business highlights. Followed by updates on cost actions, capital, tariffs, US policy, and then I'm going to hand it over to Jose to walk through Europe in-depth. With respect to our business performance, we saw renewed momentum in our material handling business. In the first quarter. One of our largest pedestal customers placed a $10,000,000 initial order tied to over $200,000,000 in future opportunities under a safe harbor structure. We also expanded with new partners. Including Stephan Spain, now deploying 15 ton per day Louisiana plant was commissioned in q one, on time together with Georgia and Tennessee we now have 40 tons per day internal production capacity.
9m 21s
Improving customer economics and availability while shielding margin from third party volatility. With respect to cost savings, internally we launched a major program called Quantum Leap. Targeting over $200,000,000 in annualized run rate reductions. I'm pleased to report that most of these savings have already been executed. Program spans manufacturing, logistics, sourcing, and SG and A. Our q one cash burn was down nearly 50% year over year, and with Quantum Leap, we expect further reductions in cash burns in future quarters. This is Plug Power operating with discipline, precision, and a long term mindset. At Capital, we've taken some important steps to ensure financial flexibility In March we raised $280,000,000 in equity, bolstering liquidity while reducing risk in a volatile market. We followed that with a $525,000,000 structure financing facility part of which was used to retire convertible debt. Combined with the 1,660,000,000.00 Department of Energy loan guarantee, These moves provide a strong foundation to support our infrastructure goals. That said, I wanna be forthright. With the change in administration we're actively working with the DOE to advance the loan process. The underlying program is contracted, obligated, and we believe secure And we continue to engage closely with the administration.
11m 12s
At quarter end, we held nearly $300,000,000 in run unrestricted cash with meaningful additional capacity under the new facility. Our outlook remains unchanged. We do not anticipate raising additional equity in 2025 and we remain committed to that goal. Turning to tariffs, Recent actions from the current administration have increased duties on Chinese imports that impact our core product lines like GenDrive. For some models, this has resulted in increased cost, particularly on ballast assemblies, battery modules, and plates. At the moment, a good deal of these are in inventory, That will be used in 2025. With today's announcements, obviously, the pressure's a little bit off. [indiscernible] But we are continuing down our four pronged mitigation plan. One is that if needed, we will add search charges for customers based on sourcing mix and inventory timing. Dual sourcing and resourcing, which we've really had in motion, for a number of years, Engineering redesigns to reduce tariff exposed components, and geographical diversification leading further into APAC and US suppliers. With these items, we expect even to reduce our cost in China by 50% in the next six months. Importantly, I think this is really important, our electrolyzer platform is minimally impacted even with the 45% tariffs.
13m 2s
And was internally developed with non Chinese content. This is a team wide response and it's already helping us protect margin integrity. Finally, a brief word on US policy. To clear the transition in Washington, has introduced some uncertainty about clean energy programs. The IRA is under pressure there's active debate in congress over the future of section 45 b of the hydrogen tax credit. The long term direction of decarbonization incentives. That said, we are actively engaged with policymakers, both directly and through our leadership in FICIA, which is a fuel cell and hydrogen energy association. We are also actively pursuing state and local funding opportunities where momentum continues. We remain focused on execution, and will continue advocating aggressively for a stable long term hydrogen policy framework in The US. Before I turn it over, let me frame one of the most exciting strategic frontiers Europe. Between the EU Green Deal Repower EU, and The UK Energy Act, we are tracking an electrolyzer opportunity funnel worth over $21,000,000,000 across 2025 and 2026. What is different now is not just ambition. But enforceable procurement mandates funded incentive schemes, and penalties for noncompliance. Plug is moved early, and decisively in the region.
14m 46s
And we're already embedded in some of the most transformative hydrogen projects across Europe. I'll let Jose walk through these specifics but I'll close with this. Europe is real.
14m 59s
The funnel is live. Plug is in position. With that, let me turn it over to Jose to take you through the European electrolyzer strategy. Jose, Thank you, Andy. As mentioned, Europe today is the most dynamic electrolyzer market in the world. Driven by regulation, investment and execution timelines that are accelerating across the region. Plug is at the forefront of that shift. Let me start with the policy foundation. Under the EU Green Deal, and the renewable energy directory, the EU the EU sets targets for 42% of industrial hydrogen to be renewable by 2030 and sixty percent by 02/1935. The FIT55 policy package sets the legally binding framework to decarbonize their energy intensive sectors using green hydrogen. That includes mandates under the fuel EU aviation and Fuel EU Maritime fuel standards for aviation and maritime now come with real penalties creating a direct pool for SAS and EMethanol, Both Of Which Rely On Electrolyte Electrolytic Hydrogen. What's Different This Cycle Is That Governments Are Funding Real Projects With Real Deadlines. Let's Start With Aviation. In Denmark, PLUS has an opportunity for 300 megawatt of electrolyzer capacity for a SaaS project. And the French government recently awarded 25,000,000 for pre FEED and FEED engineering for SAF projects, to four companies that Plug is actively working with.
16m 51s
This is an anchor example of Plug involved at a scale for decarbonizing jet fuel. Spain is targeting 12 gigawatts of electrolyzed capacity by 02/1930. Already 2.3 gigawatts have been preawarded across seven clusters. Covering refining, SaaS, methanol, and ammonia. Plug is actively engaged in multiple of these projects. Where our long term service model helped lower LCOH versus competitors. These evaluations are real and they include mandatory procurement scoring which favors OEMs like Plug with full life cycle offerings and domestic engineering teams. Refining is another major application Plug is delivering a hundred megawatts to Galt in Portugal, a project supported by €84,000,000 in operational subsidies from the European Hydrogen Bank. These are ten year index subsidies covering OpEx, not just CapEx, showing the EU's long term commitment to green hydrogen viability. We are also delivering 25 megawatts for Iberdrola and BP in Castellon. In Spain. Now moving to The UK, the Energy Act of 2023 has created a stable regulatory framework. The government has already awarded £2,000,000,000 in revenue support under hydrogen allocation round one HAR one, and Plug Technology is well positioned in over 60% of the capacity awarded. For the hydrogen allocation round two, hard two, The UK has shortlisted 1.2 gigawatts of new electrolyzer projects.
18m 46s
With awards expected later this year. Plug is actively engaged in both centralized and decentralized proposals with total awards that potentially could exceed 875 megawatts. Importantly, these UK programs come with fifteen year price support contracts, structure under the low carbon hydrogen agreement model. These are predictable [indiscernible] revenue streams critical for bankability and capital deployment. What sets Plug apart in this market is our full stack offering. Proven PAM systems, integrated plant engineering, long term service, and a strong European and execution teams. This is why we are strategically positioned against competitors in both RFP scoring and LCOH evaluations. To summarize, Europe is a fully active electrolyzer market. And Plug is in the pole position. On project visibility regulatory fit, and delivery readiness. We expect Europe to be a multi gigawatt contributor to bookings and revenue over the next eighteen to twenty four months. With meaningful margin contribution as projects move from backlog to commissioning.
20m 9s
Thank you, Jose, and Paul, Jose, Sanjay, and I are ready for your questions.
20m 16s
Thank you.
20m 17s
And at this time, we will conduct our question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question two. You may press 2 you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, ask a question press 1. Our first question comes from Bill Peterson with JPMorgan. Please state your question.
20m 52s
Yeah. Hi. Good afternoon, everyone. Thanks for taking the questions. I'm sure you've seen, Andy and team, the I guess, the initial proposal for the tax the tax bill. And my question is really around the 45 g and maybe a few full a few full questions. First of all, assuming this this does get written into law, what are the potential impacts for your Texas facility or the DOE loan? I presume you're gonna try to accelerate and begin construction the end of the year in order to qualify. More broadly, how should we think about the impacts to the nascent green hydrogen industry in The US? You know, clearly, with ample fossil fuels, the cost structure for green is is not in a way to compete well without this tax credit. And I appreciate the comments from Jose on Europe. Does this would this presumably mean you'd be focusing on markets such as Europe and Australia rather than The U. S? Thank you.
21m 50s
Good question, Bill. And let me I think you Summer, first, I'm gonna take a step back. I was happy that 45 v was continuing through 2025. And it would be even in the first draft you know, a safe harbor provision for construction that's would start this year. I my first reaction was we're gonna have to work to start construction this year. To make sure that that plant would qualify under 45 b. I was also pleased because I think we're probably the only fuel cell company that can leverage 48 e. And that seems like it's time [indiscernible] So that would give us time again, to continue to grow the fuel cell business. I think look. You know, Jose and I worked on this presentation for today. Prior to prior to the announcements. We have become more and more focused on your because we see that the biggest opportunities for expanding the hydrogen industry today resides in Europe, When you look at it, the only part a viewer of our products, which are actually American manufacturer, will be the stacks. The rest, we are leveraging integrators across the EU and The Middle East for our products. So you know, look, you know, there's a lot to go in congress.
23m 40s
I've been around a long time. I was just happy Bill that forty five b was mentioned and that it wasn't completely cut out like I've heard threats for the whole IRA. So can't say I was thrilled with the announcement, but I wouldn't give it you know, it it's not there's a way to work through what's been announced. So I'll just add one last item, not to ramble on Bill. I think it'll be really interesting because there seems to be very, very strong support for hubs in red districts. And look, the hubs don't work without the production tax credit. And I think that's well well known. So I think there's a lot to go. Lots still going on in DC. Yeah. That was helpful.
24m 33s
Yeah. I know. It was helpful. I'm sure you you and others will probably be working to see if there's any way to massage the the existing draft. But my second question is somewhat related, but looking at your b BEDP pipeline, shortly after last earnings, had close to eight gigawatts of electrolyzer orders set to FID within this year. Just want to get a sense, did you close each of these orders you had expected in the first quarter? Are you on track thus far into the second quarter? And and, most of these are are outside of The US to begin with. Yeah.
25m 5s
Most of these projects I mean, are really you know, we have about $200,000,000 in backlog. For this year with electrolyzers. Most of these projects we expect, you know, call it two gigawatts will go to FID. By year end. But you know, I I would just caution Bill you know, these projects, you know, the electrolyzers in many of these projects are billion dollar investments. And the plants themselves can be 3 to $4,000,000,000. Oh, probably, you know, I wanna be cautious and say, yes.
25m 49s
Allow them may close this year. But some of them certainly will fall into 26.
25m 59s
Understood. Thanks for the taking the questions, and, you know, good luck navigating this this environment. Thank you.
26m 4s
Alright. Thanks, Bill.
26m 8s
And your next question comes from George Janarekis with Canaccord Genuity. Please state your question.
26m 16s
Hi. Good afternoon, and thank you for taking my question.
26m 19s
Hi, George. Hi.
26m 22s
Just sorta had a question on on the cost cuts and the and the business. Rationalization. Are there other things that could be done, you know, whether inorganic sort of maybe selling parts of the business that could maybe accelerate your path to profitability? Thank you.
26m 44s
George, we don't [indiscernible] Let you we have no plans, and doing no work for selling portions of the business at the moment.
26m 56s
Thank you.
26m 58s
And maybe as a follow-up, to just talk about the the momentum in Europe. I'm I'm curious as to any additional steps you're taking from a people power perspective to reallocate resources to that part of the world instead of others that may be seeing a little bit of a of a slowdown in momentum. Thank you very much.
27m 17s
So I'll I'll start, then I'll let Paul add on. We've invested significantly in Europe over the past three years. We have a major development facility for electrolyzers actually resides in The Netherlands. We have a strong business development, sales operations with centers in France. We have activities in Spain. We have integrators across Europe that we work with. Europe, this is not a a new focus for Plug. It has been investments that we've been making over three to four years. Jose, would you like to add to that?
28m 3s
No.
28m 3s
You're right. I mean, we have activities all over the European Union. Namely the the the facility in The Netherlands, but as you said, we have a a commercial operations in The UK, in Spain, Germany, in, in France, and and this is not a new focus, as Sandy said. And the relationships that we have over there are have been built over the last three, four years.
28m 29s
So it's there there is a good amount of resources to face the opportunities that we have in in Europe. In the next. And I would say, Jose, for real products in the ground, using PEM technology, nobody has more.
28m 47s
I agree. Thank you. Thanks, George.
28m 55s
Your next question comes from Colin Rusch with Oppenheimer. Please state your question.
29m 1s
Thanks so much, guys. You know, can you give us an update on how the hydrogen production facilities are operating? You know, where you're at from a yield perspective versus expectations, and and how, you know, how the ramp is going in Texas at this point?
29m 18s
I think you probably mean Louisiana, Collin. Yeah.
29m 22s
Exactly. Thank you for that.
29m 24s
Yeah. So I think Georgia, we had our best month ever.
29m 29s
Yeah.
29m 29s
April was a record.
29m 31s
Terms of production and yield.
29m 32s
Yeah. So I think many tons was it? 300 tons out Georgia? [indiscernible] April? Yeah. So Georgia is beginning to run without too much management involvement, Collin. It's turns on and runs every day. Louisiana, boy, it's probably you know, I think what I've been most impressed with is look, it's our third time around.
30m 3s
It's a much cleaner design. Than Louisiana than [indiscernible] And Tennessee. We really have learned how to build plans which is really important for Jose building out the electrolyzer market.
30m 18s
So we're quite pleased with the progress we're seeing at all three sites. You know, we you know, I think the question is, you know, we need to get Texas started by year's end. And I think that's a real focus of the business.
30m 38s
Thanks so much. And then from a material handling standpoint, you know, been, you know, kind of some mixed demand, not just for you guys, but, you know, broadly speaking. Around warehousing, automation, and and capacity building. I guess, at this point, are you seeing folks, outside The US start to expand capacity at all? You know, are there some green shoots that we can be thinking about as you as you get into the back half of this year and and prepare for 2026?
31m 5s
Yeah.
31m 5s
What's interesting, I have one of my major pedestal company companies that kinda suggested to me that automation may not be working as well as a were help hoping. Which is good for our material handling business. Do you wanna touch on material handling for Europe, Jose?
31m 26s
Yeah. So in Europe, we have made some inroads, and I think we announced this few weeks ago, with, with BMW in, in Europe. With two new facilities that we're gonna be deploying there.
31m 42s
And we also Andy also mentioned Steph, which is the largest freezer company in in the European market. I think.
31m 52s
We've also done a couple of facilities with them, one in Madrid and one in in France. So we've seen some activity and some opportunities happening in the European market as well.
32m 11s
Thanks, guys.
32m 12s
Okay. Thanks, Colin.
32m 14s
And a reminder to the audience, to ask a question at this time, press 1. On your telephone keypad. Once again, to ask a question now, press 1 on your telephone keypad. Your next question comes from Eric Stine with Craig Hallum. Please state your question.
32m 31s
Hey, everyone.
32m 32s
Hey.
32m 33s
Hey, Eric.
32m 35s
Good afternoon. Hey. So, Colin, I know it's talking about kind of geographic mix of material handling. But I'm curious if you could just talk about, you know, what you're seeing today. And I know part of this is because you transitioned to the direct sales model away from PPA. You also put through price increases for margins. As a result, does that mean that the business today is more expansion with current customers? Or I mean, you did mention a new customer, but just curious. The economics are different. It may take a little bit more time to get to people up to speed on that. Just how should we think about that?
33m 13s
Do you wanna take that, Jose?
33m 16s
So the we we are growing in in both sides with existing customers and they mentioned one of our largest customers having safe harbor $200,000,000 of potential business at the end of twenty twenty four. But we are also talking and and, and expanding with new customers opportunities. The the customer are just described in Europe is a brand new customer. So we do see expansion in both sides. And the economics you know, given that we will be looking at the 48 possibility still there and we keep on pushing the market.
34m 2s
Got it. That is helpful. And then maybe could you just remind us I know you've given up you gave us the q two guide in a I'm not trying to dial this in too specifically in terms of annually. But I mean, do you expect this to be a similar year in terms of the breakdown first half, second half?
34m 23s
I would say this, Eric, We are trying to be very clear to investors of our performance. Quarter after quarter. Look. It's no as as you know that we've had a couple years where we've missed. So we wanna make sure that we don't mislead folks and and you know, this quarter, you know, we have a clear plan how to get to one forty to $1.80. Focusing on becoming gross margin breakeven by the end of the year. That is the focus. And you know, that's you know, we're trying not to provide any additional additional guidance.
35m 20s
Yep. Yes. So understood. We're we're we're asking, but I get it. So thank you very much.
35m 28s
Okay.
35m 29s
Bye.
35m 31s
Bye, Art.
35m 33s
Thank you. And your next question comes from Dushant Aylani with Jefferies. Please state your question.
35m 40s
Taking my question, guys.
35m 42s
I just wanted to follow-up on the 45 v real quick. I know that there are some, you know, safe harbor rules, right, 5% spend or if you start construction. You kind of remind us how much have you already spent on Texas and then how much what the CapEx looks like?
36m
We've spent $250,000,000 The CapEx is $800,000,000. The DOE loan is for approximately $400,000,000. And we've been working with a equity investor for the rest. So we've already spent $2.50 over 800 is about 37%.
36m 25s
So do you think it it that the Texas project is largely safe harbor with the 45 v? Since you've already you know, spent I would say this. This is going to be a interesting time as these rules you know, laws are [indiscernible] And I think the initial you know, the fact that 45 v's in the mix, and that there is a safe harbor aspect I take is a real positive for Texas. That being said, I know this will go through gyrations in both the house and ultimately the setting. And then ultimately in reconciliation between the two bodies So you know, I'm not I don't want to you know, what we think it is today there's one thing I can promise you. It won't be the same whether it's the May, whether it's before the August recess. Before December, you know, this is gonna it's gonna be sorted out. This is kind of the first first written Volley.
37m 44s
Fair. Fair enough. Fair enough. I agree there. And then just my, left follow-up. I think you had, mentioned in your prepared remarks around conversations with customers to, you know, on on Tarest, just maybe adding surcharges. Have those conversations been? Have you started those conversations with your customers yet?
38m 3s
You know, one of our there has been some initial conversations At the moment, we're pretty much so we had unfortunately, inventory that we're trying to burn down. And we have goals to reduce that significantly during this year, So we are protected on the inventory level.
38m 27s
Which actually has not really caused our costs to go up yet. And if I look at again at the tariffs which the terrorist truce that went into effect it really doesn't impact us. And on the electrolyzer business, as we mentioned, the products were just assigned not looking to have Chinese content. So when you put all that together, we feel we you know, I don't know if that's going to be a requirement, quite honestly.
39m 9s
Got it. Thank you.
39m 10s
I mean, I think that's I think that's one of the challenges at the level of uncertainty. Remains.
39m 17s
Fair enough. Thank you.
39m 20s
You're welcome.
39m 22s
Thank you.
39m 23s
And there are no further questions at this time, so I'll hand the floor back to Andy Marsh closing remarks. Thank you.
39m 30s
Thank you, everyone. [indiscernible] quarter we met the numbers. We said we were going to meet We're clear about our expectations for the second quarter for revenue. We expect continuous improvements on item site gross margins in the second quarter We've proven and unlike anyone else in the world, that who's not a large industrial gas company, We actually know how to build hydrogen plants And finally, there's a huge, huge market opportunity for plug and electrolyzers in Europe, UK, guess UK is still part of Europe, and Australia. So thanks, everyone. I appreciate your time. And looking forward to talking to many of you soon. Bye now.
40m 23s
This concludes today's conference. All parties may disconnect. Have a good day.
Key Insights
Q1 revenue was $134 million, in line with guidance; Q2 revenue projected between $140–$180 million, with a focus on achieving gross margin breakeven by year-end.
Significant progress made on profitability: margins improved, cash burn reduced nearly 50% YoY, and a major cost-saving program ("Quantum Leap") targeting $200 million in annualized run-rate reductions is largely executed.
Strengthened financial position through $280 million equity raise, $525 million structured financing (partly used to retire convertible debt), and a $1.66 billion DOE loan guarantee; nearly $300 million in unrestricted cash at quarter end; no plans to raise additional equity in 2025.
European electrolyzer market is a key growth area, with Plug positioned in multi-gigawatt projects across the EU and UK, supported by regulatory mandates, funding, and long-term contracts; Europe expected to be a major contributor to bookings and revenue over the next 18–24 months.
U.S. policy/tariff changes present some uncertainty, but Plug is mitigating impacts through inventory management, dual sourcing, engineering redesigns, and expects to reduce China-related costs by 50% in six months; Texas hydrogen plant has spent $250M of planned $800M CapEx and is positioned to benefit from current tax credit safe harbor provisions.
