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PLUG's Q3 Equipment Revenues Decline Y/Y: What's the Reason Behind It?

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Key Takeaways

  • Plug Power's Q3 revenues from equipment and related products fell 9.7% year over year.
  • Lower hydrogen infrastructure and cryogenic equipment demand led to the decline.
  • Electrolyzer sales rose 13.2%, boosted by growing global and European market demand.

Plug Power Inc. (PLUG - Free Report) is facing challenges across several of its core product categories. In the third quarter of 2025, revenues from equipment, related infrastructure and other products declined 9.7% year over year to $96.8 million.

The decrease in revenues resulted from lower demand for hydrogen infrastructure, cryogenic equipment, fuel cell systems (GenDrive), and engineered oil and gas equipment. In the quarter, hydrogen infrastructure revenues decreased by $11.1 million, owing to no hydrogen site installation being completed against three completed in the same period last year. Cryogenic equipment sales also fell due to slower progress on projects that are nearing completion. Sales of engineered oil and gas equipment, acquired through the Frames acquisition, also declined by $5.7 million in the quarter due to the absence of new contracts. These results show that some of Plug Power’s legacy product lines are losing momentum.

However, Plug Powet’s electrolyzer product line increased 13.2% year over year in the third quarter. Demand for the company’s GenEco proton exchange membrane (PEM) electrolyzers continues to increase across global industrial and energy applications. This momentum is supported by favorable policy support in Europe, where government funding and faster permitting are helping accelerate green hydrogen deployment. If sustained, this momentum could help offset the softness in PLUG’s legacy products and reshape its long-term growth trajectory.

Snapshot of Plug Power’s Peers

Among its major peers, Flux Power Holdings, Inc. (FLUX - Free Report) reported revenues of $16.7 million in the fourth quarter of fiscal 2025 (ended June 2025). Flux Power’s total revenues increased 25% year over year in the same period, driven by strong demand in both the material handling and ground support markets. Flux Power continues to expand its lithium-ion energy storage solutions and SkyEMS software platform.

Another PLUG peer, Bloom Energy Corporation’s (BE - Free Report) product and service revenues rose 55.7% year over year in the third quarter of 2025. Bloom Energy’s total revenues surged 57.1% year over year in the same period. The growth was fueled by robust demand for Bloom Energy’s solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions.

The Zacks Rundown for PLUG

Shares of Plug Power have gained 34% in the past-year period compared with the industry’s growth of 25.5%.

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From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of negative 7.46X against the industry average of 25.09X. PLUG carries a Value Score of F.

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The Zacks Consensus Estimate for PLUG’s bottom line for fourth-quarter 2025 has remained the same in the past 60 days.

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The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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