Plug Power jumps 10% as Q2 margin turnaround lifts 2026 outlook

Plug Power reported Q2 revenue of $178.3 million, beating consensus, as gross margin swung to breakeven from negative 31 percent a year earlier.

"Our second quarter results demonstrate that Plug is executing its transformation into a stronger, more efficient and profitable company," Chief Executive Officer Jose Luis Crespo said.

The hydrogen fuel cell maker posted a GAAP net loss of 14 cents a share, wider than the 8-cent loss analysts expected but narrower than the 20-cent loss a year earlier. Adjusted loss of 7 cents beat the 8-cent consensus. Operating expenses fell 50 percent year over year to about $62 million, while service revenue jumped 82 percent to roughly $30 million on a positive 27 percent margin.

Plug Power raised its full-year 2026 revenue growth guidance to a range of 15 to 16 percent, implying sales of $816.4 million to $823.5 million, above the $813.8 million consensus. The company reiterated its target of positive EBITDAS in the fourth quarter, backed by asset sales expected to generate $80 million of near-term liquidity toward a $275 million goal.

Shares rose 10 percent to $2.32 Tuesday morning, though the stock remains down 91.5 percent over five years. The move was company-specific: FuelCell Energy and Bloom Energy each gained 2 percent, and the Global X Hydrogen ETF climbed 2 percent to $44.26.

Plug Power deployed 1,666 GenDrive fuel cell units in the quarter, up 125 percent year over year, and said two major customers plan to refresh more than 20,000 units over the next three years. Fuel revenue grew about 15 percent to $39 million, with fuel gross margin improving to negative 48 percent from negative 91 percent.

The electrolyzer pipeline advanced with a final investment decision on the 30-megawatt Barrow Green project in the UK, a 275-megawatt FEED scope on Hy2gen's Courant project in Quebec, and a 50-megawatt order for Orica's Hunter Valley Hydrogen Hub in Australia.

Unrestricted cash stood at about $162 million at quarter-end, with net cash usage improving to $61 million, down 58 percent sequentially. Morgan Stanley raised its price target to $1.65 in July, while Susquehanna cut its target to $2.50 on the Orica project.

The margin turnaround and raised guidance suggest management expects operational scale to translate into profitability by year-end. Investors will watch the third and fourth quarters, when Plug Power's second-half-weighted revenue and the positive EBITDAS target face real numbers rather than commentary.

This article is for informational purposes only and does not constitute investment advice.