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Plug Power vs. Flux Power: Which Clean Energy Stock Has Greater Upside?
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Key Takeaways
PLUG faces headwinds with declining hydrogen site installations, negative gross margins and cash outflows.
FLUX sees strong momentum with revenue and margin growth in material handling and ground support markets.
FLUX gains from new airline customers and growing portfolio that includes G-Series G96, AI-based battery tech.
Plug Power Inc. (PLUG - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) are both familiar names operating in the clean energy market. As rivals, these companies are engaged in manufacturing advanced energy storage solutions for the electrification of commercial and industrial equipment in the United States and internationally.
While Plug Power has been enjoying significant growth opportunities in the green hydrogen market, Flux Power is benefiting from rising demand for eco-friendly energy storage solutions in the material handling sector. But which one has the greater upside potential? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.
The Case for Plug Power
Plug Power is observing a declining trend in the number of hydrogen site installations, which reduced from 52 to 15 year over year in 2024. In the first six months of 2025, this number further reduced to four from eight in the prior-year comparable period. This has been hurting 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.
The weak liquidity position has compelled PLUG to sell shares to raise funds for its operations and invest in hydrogen plants. In first-quarter 2025, it received $267.5 million as net proceeds from equity sales and the amount totaled $857.9 million in 2024.
Despite this, Plug Power remains focused on scaling up its business and investing in hydrogen plants, given the long-term growth potential of the green hydrogen energy market. PLUG 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 - Free Report) 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 capabilities.
PLUG launched Project Quantum Leap in the first quarter, with a target to generate more than $200 million in annualized savings. As 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 Flux Power
FLUX is benefiting from increasing demand for its energy storage solutions across material handling and ground support markets. A solid pipeline of orders from renowned airlines, with six new airline customers, also bodes well. In the third quarter of fiscal 2025 (ended March 2025), the company benefited from strong revenue growth and margin momentum, backed by its product expansion efforts amid the growing popularity of lithium-ion solutions.
With an increasing move toward electrification across several commercial and industrial sectors, Flux Power is well placed with a diverse portfolio of advanced lithium-ion battery packs and software solutions that are likely to drive its growth.
The company remains focused on launching new products and upgrading the existing ones according to industry trends. FLUX recently launched the G-Series G96 High Voltage lithium-ion energy solution for the ground support equipment industry. It also received a patent for its Intelligent Battery Cycle Life Maximization, which is a proprietary AI-based algorithm. This is an important milestone in the company’s transition to a technology-led energy solutions manufacturer.
However, Flux Power is witnessing lower orders for its energy storage solutions across the new forklift category owing to the lower capital spending in the market. Also, given its weak liquidity position, the company has resorted to debt and equity financing to raise funds for its operations. It exited the fiscal third quarter with an accumulated deficit of $105.2 million, while its cash flows from operations totaled $2.2 million.
How Does the Zacks Consensus Estimate Compare for PLUG & FLUX?
The Zacks Consensus Estimate for PLUG’s 2025 sales is $707 million, implying year-over-year growth of 12.4%. The consensus estimate for its bottom line is pegged at a loss of 63 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FLUX’s fiscal 2025 (ended June 2025, results awaited) sales is approximately $66.3 million, indicating growth of 9% year over year. The Zacks Consensus Estimate for its bottom line is pegged at a loss of 42 cents per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of PLUG & FLUX
In the past six months, shares of Plug Power have gained 8.6%, while Flux Power stock has jumped 25.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, both PLUG and FLUX are trading at a negative forward price-to-earnings ratio.
PLUG’s strong foothold in the green hydrogen market, innovative product portfolio and the Quantum Leap project are likely to be beneficial in the long run. However, the current operational challenges, including lower sales of hydrogen infrastructure and negative gross margins and cash outflows, are likely to continue affecting the company’s results in the near term.
In contrast, Flux Power’s strength in the lithium-ion energy storage solution market, along with its focus on product launches per market trend, bodes well for strong growth in the quarters ahead. Additionally, the company’s healthy estimates and stock price appreciation instill investor confidence. Given these factors, FLUX seems a better choice for investors than PLUG currently.
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Plug Power vs. Flux Power: Which Clean Energy Stock Has Greater Upside?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) are both familiar names operating in the clean energy market. As rivals, these companies are engaged in manufacturing advanced energy storage solutions for the electrification of commercial and industrial equipment in the United States and internationally.
While Plug Power has been enjoying significant growth opportunities in the green hydrogen market, Flux Power is benefiting from rising demand for eco-friendly energy storage solutions in the material handling sector. But which one has the greater upside potential? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.
The Case for Plug Power
Plug Power is observing a declining trend in the number of hydrogen site installations, which reduced from 52 to 15 year over year in 2024. In the first six months of 2025, this number further reduced to four from eight in the prior-year comparable period. This has been hurting 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.
The weak liquidity position has compelled PLUG to sell shares to raise funds for its operations and invest in hydrogen plants. In first-quarter 2025, it received $267.5 million as net proceeds from equity sales and the amount totaled $857.9 million in 2024.
Despite this, Plug Power remains focused on scaling up its business and investing in hydrogen plants, given the long-term growth potential of the green hydrogen energy market. PLUG 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 - Free Report) 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 capabilities.
PLUG launched Project Quantum Leap in the first quarter, with a target to generate more than $200 million in annualized savings. As 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 Flux Power
FLUX is benefiting from increasing demand for its energy storage solutions across material handling and ground support markets. A solid pipeline of orders from renowned airlines, with six new airline customers, also bodes well. In the third quarter of fiscal 2025 (ended March 2025), the company benefited from strong revenue growth and margin momentum, backed by its product expansion efforts amid the growing popularity of lithium-ion solutions.
With an increasing move toward electrification across several commercial and industrial sectors, Flux Power is well placed with a diverse portfolio of advanced lithium-ion battery packs and software solutions that are likely to drive its growth.
The company remains focused on launching new products and upgrading the existing ones according to industry trends. FLUX recently launched the G-Series G96 High Voltage lithium-ion energy solution for the ground support equipment industry. It also received a patent for its Intelligent Battery Cycle Life Maximization, which is a proprietary AI-based algorithm. This is an important milestone in the company’s transition to a technology-led energy solutions manufacturer.
However, Flux Power is witnessing lower orders for its energy storage solutions across the new forklift category owing to the lower capital spending in the market. Also, given its weak liquidity position, the company has resorted to debt and equity financing to raise funds for its operations. It exited the fiscal third quarter with an accumulated deficit of $105.2 million, while its cash flows from operations totaled $2.2 million.
How Does the Zacks Consensus Estimate Compare for PLUG & FLUX?
The Zacks Consensus Estimate for PLUG’s 2025 sales is $707 million, implying year-over-year growth of 12.4%. The consensus estimate for its bottom line is pegged at a loss of 63 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FLUX’s fiscal 2025 (ended June 2025, results awaited) sales is approximately $66.3 million, indicating growth of 9% year over year. The Zacks Consensus Estimate for its bottom line is pegged at a loss of 42 cents per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of PLUG & FLUX
In the past six months, shares of Plug Power have gained 8.6%, while Flux Power stock has jumped 25.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, both PLUG and FLUX are trading at a negative forward price-to-earnings ratio.
Final Take
Plug Power and Flux Power carry a Zacks Rank #3 (Hold) each at present, which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PLUG’s strong foothold in the green hydrogen market, innovative product portfolio and the Quantum Leap project are likely to be beneficial in the long run. However, the current operational challenges, including lower sales of hydrogen infrastructure and negative gross margins and cash outflows, are likely to continue affecting the company’s results in the near term.
In contrast, Flux Power’s strength in the lithium-ion energy storage solution market, along with its focus on product launches per market trend, bodes well for strong growth in the quarters ahead. Additionally, the company’s healthy estimates and stock price appreciation instill investor confidence. Given these factors, FLUX seems a better choice for investors than PLUG currently.