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 vs. Flux Power: Which Clean Energy Stock Has the Edge?
Read MoreHide Full Article
Key Takeaways
Plug Power's revenues rose in early 2025, with Q3 growth driven by its expanding electrolyzer product line.
PLUG strengthened its hydrogen position through key deals, deliveries and the Project Quantum Leap initiative.
Flux Power saw weaker orders, higher costs and a fiscal Q1 net loss that weighed on its recent performance.
Plug Power Inc. (PLUG - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) are both prominent 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 gaining from growing needs for eco-friendly energy storage solutions in the material handling sector amid certain headwinds. But which one has the better 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’s results have been showing signs of improvement of late. After witnessing growth of 11% and 21% in the first and second quarter, respectively, PLUG’s revenues increased 2% year over year in the third quarter. It is worth noting that in the first nine months of the year, the same surged 10.8%. The revenues were driven by its electrolyzer product line, supported by the rising demand for green hydrogen solutions. In the third quarter, revenues from its electrolyzer product line surged 13.2% on a year-over-year basis.
Plug Power is expected to continue benefiting from strong electrolyzer demand in North America, Europe and Australia, where government investments and faster project timelines are promoting the use of green hydrogen. For instance, in October 2025, it signed a deal with Allied Biofuels to deliver a maximum of two GW of GenEco PEM electrolyzer systems. This takes its total contracted electrolyzer capacity with Allied partners to five GW. In the same month, the company delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. It plans to deploy a total of 10 GenEco electrolyzer arrays with Hydrogen Processing Units at the site by early 2026.
Also, the company’s expanded partnership with Allied Green Ammonia supports its growing presence in large-scale hydrogen solution market, particularly in Uzbekistan and Australia.
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.
However, the major issue plaguing Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 67.9% in third-quarter 2025 after reporting a gross margin of negative 30.7% in the second quarter. Meanwhile, its operating cash outflow totaled $387.2 million in the first nine months of 2025.
Plug Power is facing challenges across some of its core product lines. 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 Case for Flux Power
FLUX has been witnessing decline in customer orders owing to the uncertainty caused by the tariff-related issues. Lower orders for its energy storage solutions across the new forklift category owing to the lower capital spending hurt the company’s revenues in first-quarter fiscal 2026 (ended September 2025), which declined 18% year over year. A shift in sales mix to lower-priced products in the material handling market and reduced volumes in the ground support market also affected its results.
Flux Power has been dealing with the adverse impacts of rising costs and expenses. In fiscal 2025 (ended June 2025), its cost of sales increased 2.5% from the year-ago period. Total operating expenses increased 12.2% in the same fiscal year. The trend continued in the first quarter of fiscal 2026, with total operating expenses, as a percentage of net sales, increasing 520 basis points year over year to 45.1%.
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 first quarter with an accumulated deficit of $108.9 million, while its cash flows from operations were only $0.9 million. Amid this, in the fiscal first quarter, FLUX incurred a net loss of approximately $2.6 million.
Despite these headwinds, the company remains focused on launching new products and upgrading the existing ones according to industry trends. 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 uplift its long-term performance.
How Does the Zacks Consensus Estimate Compare for PLUG & FLUX?
The Zacks Consensus Estimate for PLUG’s 2025 sales is $701.8 million, implying year-over-year growth of 11.6%. The consensus estimate for its bottom line is pegged at a loss of 80 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FLUX’s fiscal 2026 (ending June 2026) sales is approximately $66.1 million, indicating a decline of 0.5% year over year. The Zacks Consensus Estimate for its bottom line is pegged at a loss of 23 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 soared 145.8%, while Flux Power stock has declined 6.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, both PLUG and FLUX are trading at a negative forward price-to-earnings ratio.
Conclusion
Despite PLUG’s current operational challenges, its strong foothold in the green hydrogen market, strategic partnerships, innovative product portfolio and the Quantum Leap project are likely to be beneficial in the long run. On the other hand, Flux Power is plagued by lower orders for its energy storage solutions, rising operating costs and expenses and weak liquidity position, which are likely to weigh on its performance going forward.
Considering their long-term prospects, revenue growth and margin improvements over the last few quarters, PLUG seems to be a better choice over FLUX currently. While PLUG currently carries a Zacks Rank #3 (Hold), FLUX has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Plug Power vs. Flux Power: Which Clean Energy Stock Has the Edge?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) are both prominent 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 gaining from growing needs for eco-friendly energy storage solutions in the material handling sector amid certain headwinds. But which one has the better 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’s results have been showing signs of improvement of late. After witnessing growth of 11% and 21% in the first and second quarter, respectively, PLUG’s revenues increased 2% year over year in the third quarter. It is worth noting that in the first nine months of the year, the same surged 10.8%. The revenues were driven by its electrolyzer product line, supported by the rising demand for green hydrogen solutions. In the third quarter, revenues from its electrolyzer product line surged 13.2% on a year-over-year basis.
Plug Power is expected to continue benefiting from strong electrolyzer demand in North America, Europe and Australia, where government investments and faster project timelines are promoting the use of green hydrogen. For instance, in October 2025, it signed a deal with Allied Biofuels to deliver a maximum of two GW of GenEco PEM electrolyzer systems. This takes its total contracted electrolyzer capacity with Allied partners to five GW. In the same month, the company delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. It plans to deploy a total of 10 GenEco electrolyzer arrays with Hydrogen Processing Units at the site by early 2026.
Also, the company’s expanded partnership with Allied Green Ammonia supports its growing presence in large-scale hydrogen solution market, particularly in Uzbekistan and Australia.
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.
However, the major issue plaguing Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 67.9% in third-quarter 2025 after reporting a gross margin of negative 30.7% in the second quarter. Meanwhile, its operating cash outflow totaled $387.2 million in the first nine months of 2025.
Plug Power is facing challenges across some of its core product lines. 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 Case for Flux Power
FLUX has been witnessing decline in customer orders owing to the uncertainty caused by the tariff-related issues. Lower orders for its energy storage solutions across the new forklift category owing to the lower capital spending hurt the company’s revenues in first-quarter fiscal 2026 (ended September 2025), which declined 18% year over year. A shift in sales mix to lower-priced products in the material handling market and reduced volumes in the ground support market also affected its results.
Flux Power has been dealing with the adverse impacts of rising costs and expenses. In fiscal 2025 (ended June 2025), its cost of sales increased 2.5% from the year-ago period. Total operating expenses increased 12.2% in the same fiscal year. The trend continued in the first quarter of fiscal 2026, with total operating expenses, as a percentage of net sales, increasing 520 basis points year over year to 45.1%.
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 first quarter with an accumulated deficit of $108.9 million, while its cash flows from operations were only $0.9 million. Amid this, in the fiscal first quarter, FLUX incurred a net loss of approximately $2.6 million.
Despite these headwinds, the company remains focused on launching new products and upgrading the existing ones according to industry trends. 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 uplift its long-term performance.
How Does the Zacks Consensus Estimate Compare for PLUG & FLUX?
The Zacks Consensus Estimate for PLUG’s 2025 sales is $701.8 million, implying year-over-year growth of 11.6%. The consensus estimate for its bottom line is pegged at a loss of 80 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FLUX’s fiscal 2026 (ending June 2026) sales is approximately $66.1 million, indicating a decline of 0.5% year over year. The Zacks Consensus Estimate for its bottom line is pegged at a loss of 23 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 soared 145.8%, while Flux Power stock has declined 6.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, both PLUG and FLUX are trading at a negative forward price-to-earnings ratio.
Conclusion
Despite PLUG’s current operational challenges, its strong foothold in the green hydrogen market, strategic partnerships, innovative product portfolio and the Quantum Leap project are likely to be beneficial in the long run. On the other hand, Flux Power is plagued by lower orders for its energy storage solutions, rising operating costs and expenses and weak liquidity position, which are likely to weigh on its performance going forward.
Considering their long-term prospects, revenue growth and margin improvements over the last few quarters, PLUG seems to be a better choice over FLUX currently. While PLUG currently carries a Zacks Rank #3 (Hold), FLUX has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.