Plug Power falls after posting mixed second-quarter results
Plug Power is trading lower in the after-hours session after reporting second-quarter results that were a mixed bag.
Revenue: $174 million (estimated $157.9 million, guidance for $140 million to $180 million).
Net earnings per share: -$0.20 (estimated -$0.16).
Management failed to provide much in the way of guidance for the current quarter, but aims to “achieve gross margin break-even on a run-rate basis in Q4 2025.” In the current quarter, the hydrogen fuel cell company’s gross margin was -31%, a sharp improvement from -92% during the same period last year thanks to progress in its “Project Quantum Leap” plan to reduce costs.
Plug Power was whipsawed during the second quarter amid evolving legislation related to its hydrogen business. One draft of the Senate’s tax bill would have ended the green hydrogen production credit at the end of this year. The OBBBA as passed kept these credits in place through the end of 2027, proving Plug Power CEO Andy Marsh’s prediction mostly right.
“We don’t expect that Congress — and Congress, remember, is who decides this — is going to make any changes to the 45V,” he told Sherwood News in late February.
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