We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plug Power Eyes Expansion in Green Energy Sector: Can It Deliver Growth?
Read MoreHide Full Article
Key Takeaways
PLUG faces declining hydrogen equipment sales, negative margins and high cash burn pressures.
A $1.66B DOE loan backs PLUG's plan to build six green hydrogen plants across the US.
New JV with OLN and tax credit extensions may aid PLUG's long-term hydrogen growth strategy.
Plug Power Inc. (PLUG - Free Report) has been plagued with a high cash burn rate and negative gross margins over the past several quarters. Decline in revenues from the sales of hydrogen equipment and related infrastructure has been weighing on its performance. The company has been subject to lower sales of GenDrive units, GenSure stationary backup power units, cryogenic storage equipment and liquefiers.
Despite this, PLUG has been considering to scale up its business and invest 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 2030. PLUG looks forward to capitalize on the opportunity with increased green hydrogen production at its new plant in Georgia, as well as a new joint venture with chemical products company, Olin Corporation (OLN - Free Report) in Louisiana.
In January 2025, Plug Power also 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 domestic manufacturing and hydrogen production capabilities. Also, the Senate's revision of the Trump administration's proposed tax bill is expected to offer two-year tax credit extensions for the hydrogen industry. This is likely to help Plug Power remain solvent as it considers scaling up its business.
Although, the ongoing challenges, including negative gross margins and cash outflows, are likely to affect PLUG’s near-term performance, its investments in the lucrative green hydrogen market and the Quantum Leap project are likely to be beneficial in the long run.
Growth Investments in Clean Energy Space from PLUG’s Peers
Among Plug Power’s major peers, Bloom Energy Corporation (BE - Free Report) is poised to benefit from its expanding domestic and international commercial capability. In 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. Also, Bloom Energy’s fuel cell projects with SK ecoplant in South Korea have significantly contributed to its performance in the past several quarters.
Its another peer, FuelCell Energy, Inc. (FCEL - Free Report) , remains focused on investing in the development and commercialization of its solid oxide fuel cell platform. This includes strategic collaborations that will allow FuelCell Energy to deploy the technology in energy, hydrogen generation and emissions reduction projects. FuelCell Energy continues to deploy its mature carbonate fuel cell systems, which generate clean electricity, heat and hydrogen, and support carbon capture.
The Zacks Rundown for PLUG
Shares of Plug Power have gained 14.7% in the past three months compared with the industry’s growth of 48.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.83X against the industry average of 20.88X. PLUG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 has been stable in the past 60 days.
Image Source: Zacks Investment Research
PLUG stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Plug Power Eyes Expansion in Green Energy Sector: Can It Deliver Growth?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) has been plagued with a high cash burn rate and negative gross margins over the past several quarters. Decline in revenues from the sales of hydrogen equipment and related infrastructure has been weighing on its performance. The company has been subject to lower sales of GenDrive units, GenSure stationary backup power units, cryogenic storage equipment and liquefiers.
Despite this, PLUG has been considering to scale up its business and invest 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 2030. PLUG looks forward to capitalize on the opportunity with increased green hydrogen production at its new plant in Georgia, as well as a new joint venture with chemical products company, Olin Corporation (OLN - Free Report) in Louisiana.
In January 2025, Plug Power also 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 domestic manufacturing and hydrogen production capabilities. Also, the Senate's revision of the Trump administration's proposed tax bill is expected to offer two-year tax credit extensions for the hydrogen industry. This is likely to help Plug Power remain solvent as it considers scaling up its business.
Although, the ongoing challenges, including negative gross margins and cash outflows, are likely to affect PLUG’s near-term performance, its investments in the lucrative green hydrogen market and the Quantum Leap project are likely to be beneficial in the long run.
Growth Investments in Clean Energy Space from PLUG’s Peers
Among Plug Power’s major peers, Bloom Energy Corporation (BE - Free Report) is poised to benefit from its expanding domestic and international commercial capability. In 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. Also, Bloom Energy’s fuel cell projects with SK ecoplant in South Korea have significantly contributed to its performance in the past several quarters.
Its another peer, FuelCell Energy, Inc. (FCEL - Free Report) , remains focused on investing in the development and commercialization of its solid oxide fuel cell platform. This includes strategic collaborations that will allow FuelCell Energy to deploy the technology in energy, hydrogen generation and emissions reduction projects. FuelCell Energy continues to deploy its mature carbonate fuel cell systems, which generate clean electricity, heat and hydrogen, and support carbon capture.
The Zacks Rundown for PLUG
Shares of Plug Power have gained 14.7% in the past three months compared with the industry’s growth of 48.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 2.83X against the industry average of 20.88X. PLUG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 has been stable 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.