Plug Power surges 40% on preliminary results and a fresh credit pact
Beaten-down hydrogen fuel cell company Plug Power spiked more than 40% in Monday morning trading as investors cheered preliminary results.
Plug expects first-quarter revenue to land between $130 million and $134 million, up from $120 million in the first quarter last year. The company projects that recent cost-saving measures will reduce costs by $200 million per year. It anticipates net cash usage will come in at about $142 million — more than $125 million less than Q1 last year.
Also fueling investor frenzy: an up to $525 million credit pact with Yorkville Advisors, some of which Plug will use to pay off older debt.
In an interview with Sherwood News earlier this year, Plug Power CEO Andy Marsh said he wants the company to achieve a positive gross margin in 2025.
Slight tweak: even with Monday’s surge, the stock sits at just over $1.10 a share. It has fallen more than 50% over the past year and is down sharply from a recent peak in the mid-$60s in early 2021, when investors were optimistic about the Biden administration’s desire to support alternative fuels.
