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Q2 2025 revenues grew 21% with electrolyzer sales tripling year over year.
DOE loan guarantee of $1.66B supports six new green hydrogen plants.
Plug Power Inc. (PLUG - Free Report) , a familiar name in the green hydrogen industry, has seen a 22.1% plunge in its stock price in the year-to-date period, underperforming the industry as well as the S&P 500. While the industry grew 10.9% over the same time frame, the S&P 500 advanced 9.5%. The company’s peers, Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc. (FCEL - Free Report) , have surged 109.3% and declined 53.2%, respectively.
Plug Power Lags Industry & S&P 500
Image Source: Zacks Investment Research
The company has been subject to a high cash burn rate and negative gross margins over the past several quarters. However, the margins are on an improving trend, driven by its cost reduction and supply-chain optimization efforts, price increases and progress in leveraging its hydrogen platform. Amid this, the leading hydrogen energy stock is trading above both its 50-day and 200-day moving average.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Some investors might see this dip as an opportunity to buy Plug Power, considering the vast long-term market potential of green hydrogen and its solid product pipeline. However, it would be prudent to assess if it is the right time to invest in the stock. Let’s delve deeper.
Challenges Faced by PLUG Stock
PLUG witnessed a significant decline in the number of hydrogen site installations in 2024, which reduced from 52 to 15 on a year-over-year basis. In the first six months of 2025, this number reduced to four from eight in the prior-year comparable period. This has been adversely impacting its revenues related to the sales of hydrogen infrastructure. Additionally, fewer liquefier projects and a slower rate of progress on the existing ventures have been hurting revenues from the sales of cryogenic storage equipment and liquefiers.
Another major issue that has plagued Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 31% in second-quarter 2025 compared with a gross margin of negative 92% in the year-ago quarter. Meanwhile, its operating cash outflow totaled $297.4 million in the first six months of 2025 compared with $422.5 million in the year-ago period.
Given the weak liquidity position, the company has been selling 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 2024.
PLUG also operates in the highly competitive green hydrogen and fuel cell markets. As one of its peers, FuelCell Energy is a leading producer of stationary fuel cells and electrolysis platforms. PLUG’s another peer, Bloom Energy, is a leading provider of solid-oxide fuel cell systems for on-site power generation.
Long-Run Prospects Look Bright
Plug Power’s strong expertise in providing and installing electrolyzers is underlined by its significant presence in Rochester, NY, with its Gigafactory being one of the biggest PEM manufacturing facilities in the country.
PLUG's results continue to show signs of recovery in the second quarter of 2025. After witnessing growth of 11% in the first quarter, PLUG’s revenues surged 21% year over year in the second quarter. Revenues were driven by robust demand for its GenDrive fuel cells, GenFuel hydrogen infrastructure and GenEco electrolyzer platforms. Its electrolyzer revenues tripled year over year to $45 million in the quarter, as the business scales globally.
In first-quarter 2025, PLUG also launched Project Quantum Leap 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. PLUG expects the project to boost its cash flow and reduce the cash burn rate in the quarters ahead.
Earlier this year, Plug Power 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, in January 2025, Plug Power signed a three-gigawatt (GW) agreement with Allied Green Ammonia in Australia, which reflects rising global demand for green hydrogen. Going by some estimates that state that the green hydrogen energy market may grow to $30 billion by 2030, PLUG offers solid long-term growth opportunities.
PLUG’s Estimate Revisions
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 and 2026 has decreased in the past 60 days.
Image Source: Zacks Investment Research
Valuation
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 3.64X against the industry average of 22.41X. In comparison, FuelCell Energy and Bloom Energy are trading at (0.81X) and 73.86X, respectively.
Image Source: Zacks Investment Research
Final Take on PLUG
While the significant dip in PLUG stock is concerning, its strong foothold in the market, innovative product portfolio and strategic investments and partnerships are likely to drive its long-term performance. Nevertheless, the ongoing challenges, including lower sales of hydrogen infrastructure, negative gross margins and cash outflows, are likely to continue to impact this Zacks Rank #3 (Hold) company’s near-term performance.
Image: Bigstock
Plug Power Declines 22.1% YTD: Time to Hold the Stock or Exit?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) , a familiar name in the green hydrogen industry, has seen a 22.1% plunge in its stock price in the year-to-date period, underperforming the industry as well as the S&P 500. While the industry grew 10.9% over the same time frame, the S&P 500 advanced 9.5%. The company’s peers, Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc. (FCEL - Free Report) , have surged 109.3% and declined 53.2%, respectively.
Plug Power Lags Industry & S&P 500
Image Source: Zacks Investment Research
The company has been subject to a high cash burn rate and negative gross margins over the past several quarters. However, the margins are on an improving trend, driven by its cost reduction and supply-chain optimization efforts, price increases and progress in leveraging its hydrogen platform. Amid this, the leading hydrogen energy stock is trading above both its 50-day and 200-day moving average.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Some investors might see this dip as an opportunity to buy Plug Power, considering the vast long-term market potential of green hydrogen and its solid product pipeline. However, it would be prudent to assess if it is the right time to invest in the stock. Let’s delve deeper.
Challenges Faced by PLUG Stock
PLUG witnessed a significant decline in the number of hydrogen site installations in 2024, which reduced from 52 to 15 on a year-over-year basis. In the first six months of 2025, this number reduced to four from eight in the prior-year comparable period. This has been adversely impacting its revenues related to the sales of hydrogen infrastructure. Additionally, fewer liquefier projects and a slower rate of progress on the existing ventures have been hurting revenues from the sales of cryogenic storage equipment and liquefiers.
Another major issue that has plagued Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 31% in second-quarter 2025 compared with a gross margin of negative 92% in the year-ago quarter. Meanwhile, its operating cash outflow totaled $297.4 million in the first six months of 2025 compared with $422.5 million in the year-ago period.
Given the weak liquidity position, the company has been selling 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 2024.
PLUG also operates in the highly competitive green hydrogen and fuel cell markets. As one of its peers, FuelCell Energy is a leading producer of stationary fuel cells and electrolysis platforms. PLUG’s another peer, Bloom Energy, is a leading provider of solid-oxide fuel cell systems for on-site power generation.
Long-Run Prospects Look Bright
Plug Power’s strong expertise in providing and installing electrolyzers is underlined by its significant presence in Rochester, NY, with its Gigafactory being one of the biggest PEM manufacturing facilities in the country.
PLUG's results continue to show signs of recovery in the second quarter of 2025. After witnessing growth of 11% in the first quarter, PLUG’s revenues surged 21% year over year in the second quarter. Revenues were driven by robust demand for its GenDrive fuel cells, GenFuel hydrogen infrastructure and GenEco electrolyzer platforms. Its electrolyzer revenues tripled year over year to $45 million in the quarter, as the business scales globally.
In first-quarter 2025, PLUG also launched Project Quantum Leap 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. PLUG expects the project to boost its cash flow and reduce the cash burn rate in the quarters ahead.
Earlier this year, Plug Power 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, in January 2025, Plug Power signed a three-gigawatt (GW) agreement with Allied Green Ammonia in Australia, which reflects rising global demand for green hydrogen. Going by some estimates that state that the green hydrogen energy market may grow to $30 billion by 2030, PLUG offers solid long-term growth opportunities.
PLUG’s Estimate Revisions
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 and 2026 has decreased in the past 60 days.
Image Source: Zacks Investment Research
Valuation
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 3.64X against the industry average of 22.41X. In comparison, FuelCell Energy and Bloom Energy are trading at (0.81X) and 73.86X, respectively.
Image Source: Zacks Investment Research
Final Take on PLUG
While the significant dip in PLUG stock is concerning, its strong foothold in the market, innovative product portfolio and strategic investments and partnerships are likely to drive its long-term performance. Nevertheless, the ongoing challenges, including lower sales of hydrogen infrastructure, negative gross margins and cash outflows, are likely to continue to impact this Zacks Rank #3 (Hold) company’s near-term performance.
While current shareholders should hold their positions, new investors should wait for the stock to provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.