Plug Power's Equipment Weakness Grows: What's the Road Ahead?

Plug Power Inc. PLUG is experiencing increasing challenges across several of its core product categories. In the first quarter of 2025, the company reported a 7% year-over-year decrease in revenues from equipment, related infrastructure and other products.

Reduced demand for PLUG’s key product offerings, including hydrogen infrastructure, cryogenic equipment, fuel cell systems (GenDrive) and engineered oil and gas equipment, resulted in the decline in revenues. In the quarter, hydrogen infrastructure revenues dropped $6.6 million owing to only one hydrogen site installation being completed compared with three in the same period last year.

GenDrive unit sales also fell significantly, with 848 units sold in the quarter compared with 1,298 a year ago, leading to a $2.3 million revenue reduction. Cryogenic equipment sales were negatively impacted by slower progress on projects that are nearing completion. Engineered oil and gas equipment sales, acquired through the Frames acquisition, also declined $2.7 million.

Nevertheless, in January 2025, Plug Power signed a three-gigawatt (GW) agreement with Allied Green Ammonia in Australia which reflects rising global demand for green hydrogen. If sustained, this momentum could help offset the softness in PLUG’s legacy products and reshape its long-term growth trajectory.

Snapshot of Plug Power’s Peers

Among its major peers, Flux Power Holdings, Inc. FLUX reported revenues of $16.7 million in the third quarter of fiscal 2025. Flux Power’s total revenues increased 16% year over year, driven by strong demand in both material handling and ground support markets. Flux Power continues to expand its lithium-ion energy storage solutions and SkyEMS software platform.

In the first quarter of 2025, PLUG’s another peer, Bloom Energy Corporation’s BE product and service revenues rose 26.5% year over year. Bloom Energy’s total revenues surged 38.6% year over year. The growth was fueled by robust demand for Bloom Energy’s solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions.

The Zacks Rundown for PLUG

Shares of Plug Power have lost 16.9% in the year-to-date period against the industry’s growth of 13.5%.

From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 3.89X against the industry average of 23.08X. PLUG carries a Value Score of F.

The Zacks Consensus Estimate for PLUG’s bottom line for second-quarter 2025 has increased in the past 60 days.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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