Plug Power’s (PLUG) stock is down 6% after the maker of electric vehicle batteries reported second-quarter financial results that underwhelmed Wall Street.
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The hydrogen fuel cell company, which is not yet profitable, reported a net loss of $228.7 million for Q2, which was an improvement over a $262.3 million loss a year earlier. However, Plug Power’s earnings per share loss amounted to $0.20, which was worse than the loss of $0.16 expected on Wall Street. Revenue in the quarter totaled $174 million, a 21% increase from the same period of 2024.
Management also reported that the company’s gross margin improved to -31% from -92% a year ago. The company’s cash position stood at $140 million at the end of June this year. The improving results were attributed to service cost reductions, equipment cost improvements, and better hydrogen pricing.
Plug Power’s income statement. Source: Main Street Data
Look Ahead
In terms of guidance, Plug Power highlighted progress in its “Project Quantum Leap” initiative, which has delivered cost structure improvements through workforce optimization, facility consolidation, and renegotiated supply contracts.
Plug Power stated that it expects to achieve gross margin break-even on a run-rate basis by this year’s fourth quarter, citing continued cost discipline. Management also highlighted the extension of the “Investment Tax Credit” through 2026, which is stimulating customer demand for its fuel cells for material handling solutions, which it expects will drive new bookings. PLUG stock is down 25% this year.
Is PLUG Stock a Buy?
The stock of Plug Power has a consensus Hold rating among 19 Wall Street analysts. That rating is based on four Buy, 11 Hold, and four Sell recommendations issued in the last three months. The average PLUG price target of $1.56 implies 1.89% downside risk from current levels. These ratings are likely to change after the company’s financial results.
