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Plug Power's Electrolyzer Sales Jump in Q1: Can the Momentum Sustain?
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Key Takeaways
PLUG saw a 581.7% YoY jump in electrolyzer revenues in Q1 2025, driven by global delivery and order growth.
A 3 GW supply deal with Allied Green Ammonia marks one of PLUG's largest electrolyzer contracts to date.
Despite growth, it faces pressure from negative gross margins and the capital intensity of hydrogen projects.
Plug Power Inc.’s (PLUG - Free Report) electrolyzer product line is emerging as a key driver of its growth, supported by the rising demand for green hydrogen solutions. In the first quarter of 2025, the company reported a 581.7% year-over-year increase in revenues from this product line. This sharp rise was driven by increased product deliveries and new orders across North America, Europe and Asia.
It is worth noting that in May 2024, PLUG entered into an agreement to supply three gigawatts (GW) of electrolyzers to Australia-based Allied Green Ammonia for a landmark green hydrogen-to-ammonia project. This marks one of the largest electrolyzer deployment deals to date. With more than eight GW in basic engineering and design package contracts worldwide, Plug Power has established itself as a key player in the rapidly growing electrolyzer market.
Also, the company’s GenEco PEM electrolyzer systems are increasingly being adopted by the industrial and energy customers as the demand for hydrogen-based solutions continues to grow globally. This rising demand is supported by strong policy backing in Europe, where government investments and faster project timelines are helping accelerate the use of green hydrogen.
Despite the impressive growth in electrolyzer revenues, PLUG’s overall financial performance remains under pressure due to negative gross margins and increased operational complexity as it expands across multiple regions. The capital intensity of hydrogen infrastructure, combined with ongoing operating losses and reliance on external financing, continues to raise doubts about Plug Power’s ability to achieve sustained growth in the near term.
Plug’s Peers in the Electrolyzer Market
Among its major peers, FuelCell Energy, Inc. (FCEL - Free Report) reported product revenues, which include its electrolyzer line, 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. However, FuelCell’s electrolyzer sales remained minimal as it advances early-stage commercialization.
PLUG’s another peer, Bloom Energy Corporation’s (BE - Free Report) product and service revenues, which include its electrolyzer business, increased 26.5% year over year in the first quarter of 2025. Bloom Energy’s total revenues rose 38.6% year over year. Bloom Energy is rapidly expanding its electrolyzer deployment efforts.
The Zacks Rundown for PLUG
Shares of Plug Power have lost 46.5% in the year-to-date period compared with the industry’s decline of 20.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.27X against the industry average of 20.45X. 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: Bigstock
Plug Power's Electrolyzer Sales Jump in Q1: Can the Momentum Sustain?
Key Takeaways
Plug Power Inc.’s (PLUG - Free Report) electrolyzer product line is emerging as a key driver of its growth, supported by the rising demand for green hydrogen solutions. In the first quarter of 2025, the company reported a 581.7% year-over-year increase in revenues from this product line. This sharp rise was driven by increased product deliveries and new orders across North America, Europe and Asia.
It is worth noting that in May 2024, PLUG entered into an agreement to supply three gigawatts (GW) of electrolyzers to Australia-based Allied Green Ammonia for a landmark green hydrogen-to-ammonia project. This marks one of the largest electrolyzer deployment deals to date. With more than eight GW in basic engineering and design package contracts worldwide, Plug Power has established itself as a key player in the rapidly growing electrolyzer market.
Also, the company’s GenEco PEM electrolyzer systems are increasingly being adopted by the industrial and energy customers as the demand for hydrogen-based solutions continues to grow globally. This rising demand is supported by strong policy backing in Europe, where government investments and faster project timelines are helping accelerate the use of green hydrogen.
Despite the impressive growth in electrolyzer revenues, PLUG’s overall financial performance remains under pressure due to negative gross margins and increased operational complexity as it expands across multiple regions. The capital intensity of hydrogen infrastructure, combined with ongoing operating losses and reliance on external financing, continues to raise doubts about Plug Power’s ability to achieve sustained growth in the near term.
Plug’s Peers in the Electrolyzer Market
Among its major peers, FuelCell Energy, Inc. (FCEL - Free Report) reported product revenues, which include its electrolyzer line, 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. However, FuelCell’s electrolyzer sales remained minimal as it advances early-stage commercialization.
PLUG’s another peer, Bloom Energy Corporation’s (BE - Free Report) product and service revenues, which include its electrolyzer business, increased 26.5% year over year in the first quarter of 2025. Bloom Energy’s total revenues rose 38.6% year over year. Bloom Energy is rapidly expanding its electrolyzer deployment efforts.
The Zacks Rundown for PLUG
Shares of Plug Power have lost 46.5% in the year-to-date period compared with the industry’s decline of 20.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.27X against the industry average of 20.45X. 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
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.