PLUG Q2 Earnings Call Centers on Margins and Higher Growth

PLUG Raises Growth Outlook on Second-Half Volume

CEO Jose Crespo said the 15-16% outlook is above the prior 13-15% range. Plug expects its second-half-weighted cadence to continue, with year-end deployment cycles supporting the fourth quarter.

CFO Paul Middleton said first-half revenues reached $342 million, up 11% year over year. He expects sequential and year-over-year growth in the third quarter, with most second-half volume arriving in the fourth quarter.

An H.C. Wainwright analyst pressed management on visibility. Crespo said commercial visibility supports the raised outlook, while execution will determine delivery against the plan.

Plug Power Maps Margin Path to Q4 EBITDAS

Crespo highlighted a gross margin of negative 0.9%, versus negative 30.7% a year earlier and negative 13% in the first quarter. He tied the improvement to Quantum Leap, service economics and hydrogen-plant utilization.

Middleton said second-half sales should be about 40% higher than first-half levels, driven mostly by equipment. He also cited manufacturing cost reductions, service reliability, fuel-network efficiency and PPA improvements.

A Canaccord Genuity analyst asked about lower operating expenses. Middleton said the second quarter included a $39.7 million recovery of previously impaired assets and reiterated a quarterly run rate of about $75 million.

PLUG Sees Service and Refresh Cycle Support

Plug deployed 1,666 GenDrive units versus 739 a year earlier. Service revenues rose 82% to $29.8 million, while service margin reached 27%.

An Oppenheimer analyst asked about service profitability. Crespo cited better unit and stack reliability, more units serviced per technician and pricing changes made over the past two years to better reflect service costs.

A Craig-Hallum analyst focused on more than 20,000 planned unit refreshes at two major customers. Crespo said about 2,000 refreshes are expected in 2026, with the broader cycle unfolding over three years.

Plug Power Advances Electrolyzer FID Pipeline

Crespo highlighted the 30-megawatt Carlton Power FID in the U.K., part of a 55-megawatt award and the 50-megawatt Orica order in Australia. Plug also has a 275-megawatt FEED scope for Hy2gen's Quebec project.

A UBS analyst asked about FEED conversion. Crespo put the Quebec project's estimated FID timing around the beginning of 2027 and said Carlton's remaining 25 megawatts are expected to reach FID before year-end.

Responding to BTIG, Crespo said large projects generally take 12 to 18 months through delivery, installation and commissioning. Milestone payments and percentage-of-completion accounting can bring cash and revenue earlier.

PLUG Targets Lower Burn and Nondilutive Funding

Net cash usage fell to about $61 million, down roughly 58% sequentially. Middleton said Plug ended the second quarter with $162 million of unrestricted cash and expects about $155 million of restricted cash to be released over the next 12 months.

Management said $47 million had been received from transactions expected to generate about $80 million of near-term liquidity. The broader asset monetization and nondilutive financing initiative targets more than $275 million.

Asked by H.C. Wainwright about debt reduction, Middleton said the convertible debt has an eight-year term, relatively low-cost interest and no amortization. His near-term emphasis remained on funding operations as cash burn declines.

Plug Power Keeps Core Priorities in View

Crespo closed with the same priorities for the balance of 2026: disciplined execution, commercial pipeline conversion, stronger liquidity through nondilutive means and positive EBITDAS in the fourth quarter.

Management's second-half framework rests on higher equipment volume, further margin gains and continued cost discipline. The call repeatedly returned to converting those operating improvements into lower cash use and greater operating leverage.

PLUG Zacks Rank Balances Mixed Style Signals

PLUG carries a Zacks Rank #2 (Buy), with Growth and Momentum Scores of B. Its Value Score is F and its VGM Score is D. Zacks Style Scores rank A and B above lower grades, with top Zacks Ranks benefiting most when paired with A or B Style Scores. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The mix combines a favorable Zacks Rank with stronger growth and momentum characteristics but weaker value and composite VGM readings. The Zacks Rank can change as earnings estimates are revised after the just-reported results.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research