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Can Plug Power's Green Hydrogen Expansion Drive Sustainable Growth?
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Key Takeaways
Plug Power is expanding its green hydrogen business through electrolyzer projects across global markets.
Plug Power's Q2 revenues rose 9% sequentially to $178.3M, while gross margin improved to negative 0.9%.
PLUG targets 15-16% revenue growth in 2026 and positive EBITDA in Q4 amid its restructuring program.
Plug Power Inc. (PLUG - Free Report) has been focusing on expanding its business and investing in the green hydrogen energy market given its long-term growth potential. The company looks forward to strengthening its position in the market with its GenEco electrolyzer business, hydrogen production network and growing project portfolio. In July 2026, the 30-megawatt Barrow Green Hydrogen project in the United Kingdom reached final investment decision, with Plug Power supplying its GenEco electrolyzers. In June 2026, the company secured a 50-megawatt electrolyzer order for Orica’s Hunter Valley Hydrogen Hub in Australia.
With regard to this, Plug Power continues to convert its commercial pipeline into executable projects. In September 2026, the company announced the shipment of a one-megawatt GenEco PEM electrolyzer to HWR Hydrogen in New Zealand to support hydrogen production for a refueling station and dual-fuel heavy transport fleet. Also in June 2026, Plug Power completed installation, commissioning and handover of a five-MW GenEco PEM electrolyzer at European Energy’s Måde PtX facility in Denmark. At the same time, PLUG continues to advance its 100-megawatt GALP project in Portugal and 25-megawatt Iberdrola and BP project in Spain.
However, PLUG has been grappling with a high cash burn rate and negative gross margins over the past several quarters, though its financial performance improved in the second quarter of 2026. Revenues increased approximately 9% sequentially to $178.3 million, while gross margin improved to negative 0.9% from negative 30.7% a year ago. The company’s net cash usage fell approximately 58% sequentially to $61 million. The company is targeting 15-16% revenue growth for 2026 and positive EBITDA in the fourth quarter as it continues executing its Quantum Leap restructuring program.
PLUG’s Peers’ Expansion in Clean Energy Space
Among Plug Power’s major peers, FuelCell Energy, Inc. (FCEL - Free Report) remains committed to investing in the development and commercialization of its solid oxide fuel cell platform. This includes strategic partnerships that will allow FuelCell Energy to deploy the technology in energy, hydrogen generation and emissions reduction projects. Also, FCEL has been expanding its hydrogen business with its Tri-gen platform, which can simultaneously produce hydrogen, electricity and water. The system supports transportation and industrial applications while potentially reducing hydrogen sourcing and transportation requirements.
Its another peer, Bloom Energy Corporation (BE - Free Report) , stands to benefit from its expanding domestic and international commercial capability. In June 2026, Bloom Energy expanded its strategic partnership with Brookfield, increasing the financing framework for AI infrastructure power projects from $5 billion to $25 billion. The expanded funding is expected to support the global deployment of Bloom Energy’s deployable onsite power platform for AI infrastructure.
The Zacks Rundown for PLUG
Shares of Plug Power have lost 20.2% in the past year against the industry’s growth of 46.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-sales ratio of 2.78X compared with the industry average of 7.74X. PLUG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2026 has decreased in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Plug Power's Green Hydrogen Expansion Drive Sustainable Growth?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) has been focusing on expanding its business and investing in the green hydrogen energy market given its long-term growth potential. The company looks forward to strengthening its position in the market with its GenEco electrolyzer business, hydrogen production network and growing project portfolio. In July 2026, the 30-megawatt Barrow Green Hydrogen project in the United Kingdom reached final investment decision, with Plug Power supplying its GenEco electrolyzers. In June 2026, the company secured a 50-megawatt electrolyzer order for Orica’s Hunter Valley Hydrogen Hub in Australia.
With regard to this, Plug Power continues to convert its commercial pipeline into executable projects. In September 2026, the company announced the shipment of a one-megawatt GenEco PEM electrolyzer to HWR Hydrogen in New Zealand to support hydrogen production for a refueling station and dual-fuel heavy transport fleet. Also in June 2026, Plug Power completed installation, commissioning and handover of a five-MW GenEco PEM electrolyzer at European Energy’s Måde PtX facility in Denmark. At the same time, PLUG continues to advance its 100-megawatt GALP project in Portugal and 25-megawatt Iberdrola and BP project in Spain.
However, PLUG has been grappling with a high cash burn rate and negative gross margins over the past several quarters, though its financial performance improved in the second quarter of 2026. Revenues increased approximately 9% sequentially to $178.3 million, while gross margin improved to negative 0.9% from negative 30.7% a year ago. The company’s net cash usage fell approximately 58% sequentially to $61 million. The company is targeting 15-16% revenue growth for 2026 and positive EBITDA in the fourth quarter as it continues executing its Quantum Leap restructuring program.
PLUG’s Peers’ Expansion in Clean Energy Space
Among Plug Power’s major peers, FuelCell Energy, Inc. (FCEL - Free Report) remains committed to investing in the development and commercialization of its solid oxide fuel cell platform. This includes strategic partnerships that will allow FuelCell Energy to deploy the technology in energy, hydrogen generation and emissions reduction projects. Also, FCEL has been expanding its hydrogen business with its Tri-gen platform, which can simultaneously produce hydrogen, electricity and water. The system supports transportation and industrial applications while potentially reducing hydrogen sourcing and transportation requirements.
Its another peer, Bloom Energy Corporation (BE - Free Report) , stands to benefit from its expanding domestic and international commercial capability. In June 2026, Bloom Energy expanded its strategic partnership with Brookfield, increasing the financing framework for AI infrastructure power projects from $5 billion to $25 billion. The expanded funding is expected to support the global deployment of Bloom Energy’s deployable onsite power platform for AI infrastructure.
The Zacks Rundown for PLUG
Shares of Plug Power have lost 20.2% in the past year against the industry’s growth of 46.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-sales ratio of 2.78X compared with the industry average of 7.74X. PLUG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2026 has decreased in the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.