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Plug Power Surges 78.8% YTD: How Should You Play the Stock?
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Key Takeaways
PLUG shares jumped 78.8% YTD on surging electrolyzer demand and global green hydrogen expansion.
Q2 2025 revenues rose 21% as electrolyzer sales soared 200%, supported by strong policy backing in Europe.
Despite growth, PLUG faces negative margins, high cash burn and weak liquidity amid fewer site installs.
Plug Power Inc. (PLUG - Free Report) shares have surged 78.8% in the year-to-date period, outpacing the industry and the S&P 500, which have returned 33.5% and 15.2%, respectively. In comparison, the company’s peers like Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc. (FCEL - Free Report) have gained 306.5% and 12.9%, respectively, over the same time frame.
PLUG Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $3.81 in the last trading session, the stock is trading close to its 52-week high of $3.95 and significantly higher than its 52-week low of $0.69. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Although PLUG has been persistently grappling with negative gross margins and cash outflows, its growing presence in the lucrative green hydrogen energy and strong expertise in the electrolyzer market are expected to drive its long-term performance.
PLUG’s Long-Run Prospects Look Bright
Plug Power’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 its electrolyzer product line, which has been witnessing a significant increase in demand. In the second quarter, revenues from this product line surged approximately 200% on a year-over-year basis.
This sharp growth was supported by increased demand for the company’s GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors globally. This rising demand is supported by strong policy backing in Europe, where government investments and faster project timelines are promoting the use of green hydrogen.
For instance, in October 2025, Plug Power delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. The company secured an order to install a total of 10 arrays of GenEco electrolyzers with Hydrogen Processing Units by early 2026. Also, in June 2025, PLUG expanded its partnership with Allied Green Ammonia with a new two-gigawatt electrolyzer project in Uzbekistan. This deal builds on their existing three GW project in Australia and strengthens the company’s position as a leading provider of large-scale hydrogen solutions worldwide.
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.
PLUG also launched Project Quantum Leap to boost its cash flow and reduce the cash burn rate. 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 generate more than $200 million in annualized savings.
Near-Term Headwinds
The major issue plaguing 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 after reporting a gross margin of negative 55% in the first quarter. Meanwhile, its operating cash outflow totaled $297.4 million in the first six months of 2025.
The company experienced a significant decline in the number of hydrogen site installations in 2024, which reduced from 52 to 15 year over year. This number further reduced to four from eight in the first six months of 2025 from the prior-year 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.
Also, PLUG’s weak liquidity position remains a concern. Exiting second-quarter 2025, its cash equivalents totaled $140.7 million, reflecting a decrease of 31.5% from 2024-end. As a result, the company has also sold shares to raise funds for its operations and invest in hydrogen plants.
PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Bloom Energy.
PLUG’s Estimate Revisions
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 has decreased in the past 60 days.
Image Source: Zacks Investment Research
Valuation
From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 1.68X against the industry average of 36.02X. In comparison, FuelCell Energy and Bloom Energy are trading at (2.57X) and 820.82X, respectively.
Image Source: Zacks Investment Research
Conclusion
PLUG’s strong foothold in the green hydrogen market, solid pipeline of projects, 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 impacting this Zacks Rank #3 (Hold) company’s near-term performance.
Image: Bigstock
Plug Power Surges 78.8% YTD: How Should You Play the Stock?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) shares have surged 78.8% in the year-to-date period, outpacing the industry and the S&P 500, which have returned 33.5% and 15.2%, respectively. In comparison, the company’s peers like Bloom Energy Corporation (BE - Free Report) and FuelCell Energy, Inc. (FCEL - Free Report) have gained 306.5% and 12.9%, respectively, over the same time frame.
PLUG Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $3.81 in the last trading session, the stock is trading close to its 52-week high of $3.95 and significantly higher than its 52-week low of $0.69. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Although PLUG has been persistently grappling with negative gross margins and cash outflows, its growing presence in the lucrative green hydrogen energy and strong expertise in the electrolyzer market are expected to drive its long-term performance.
PLUG’s Long-Run Prospects Look Bright
Plug Power’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 its electrolyzer product line, which has been witnessing a significant increase in demand. In the second quarter, revenues from this product line surged approximately 200% on a year-over-year basis.
This sharp growth was supported by increased demand for the company’s GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors globally. This rising demand is supported by strong policy backing in Europe, where government investments and faster project timelines are promoting the use of green hydrogen.
For instance, in October 2025, Plug Power delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. The company secured an order to install a total of 10 arrays of GenEco electrolyzers with Hydrogen Processing Units by early 2026. Also, in June 2025, PLUG expanded its partnership with Allied Green Ammonia with a new two-gigawatt electrolyzer project in Uzbekistan. This deal builds on their existing three GW project in Australia and strengthens the company’s position as a leading provider of large-scale hydrogen solutions worldwide.
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.
PLUG also launched Project Quantum Leap to boost its cash flow and reduce the cash burn rate. 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 generate more than $200 million in annualized savings.
Near-Term Headwinds
The major issue plaguing 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 after reporting a gross margin of negative 55% in the first quarter. Meanwhile, its operating cash outflow totaled $297.4 million in the first six months of 2025.
The company experienced a significant decline in the number of hydrogen site installations in 2024, which reduced from 52 to 15 year over year. This number further reduced to four from eight in the first six months of 2025 from the prior-year 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.
Also, PLUG’s weak liquidity position remains a concern. Exiting second-quarter 2025, its cash equivalents totaled $140.7 million, reflecting a decrease of 31.5% from 2024-end. As a result, the company has also sold shares to raise funds for its operations and invest in hydrogen plants.
PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Bloom Energy.
PLUG’s Estimate Revisions
The Zacks Consensus Estimate for PLUG’s bottom line for 2025 has decreased in the past 60 days.
Image Source: Zacks Investment Research
Valuation
From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 1.68X against the industry average of 36.02X. In comparison, FuelCell Energy and Bloom Energy are trading at (2.57X) and 820.82X, respectively.
Image Source: Zacks Investment Research
Conclusion
PLUG’s strong foothold in the green hydrogen market, solid pipeline of projects, 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 impacting 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.