Plug Power's Equipment Sales Rebound in Q2: What's Behind It?

Plug Power Inc. PLUG is witnessing a recovery in its equipment business, supported by strong growth in sales. In the second quarter of 2025, sales of equipment and related infrastructure were $99.2 million, reflecting a 29.2% rise from a year ago. In contrast, the company had reported a 7% year-over-year decline in the first quarter.

The key driver of this performance was the surge in electrolyzer demand, with sales more than tripling year over year to approximately $45 million. PLUG’s GenEco platform has gained traction as a preferred option for industrial-scale applications in oil refining, chemicals, mining, semiconductors, steel and cement industries. The company has more than 230 megawatts of GenEco projects underway in Europe, Australia and North America. Also, an increase in sales of fuel cell systems, particularly GenSure units, also contributed to the growth driven by increased customer activity.

Despite this progress, several product lines remained under pressure. Hydrogen infrastructure revenues were weaker in the second quarter of 2025, as only a limited number of site installations were completed compared with the prior year. Cryogenic equipment and liquefiers sales slowed due to delays in project execution, while engineered oil and gas equipment from the Frames acquisition also recorded lower revenues in the same period.

Overall, PLUG’s equipment sales are improving, led by strong electrolyzers and fuel cell systems. If sustained, this momentum could position Plug Power for durable growth in the quarters ahead.

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 second quarter of 2025, PLUG’s another peer, Bloom Energy Corporation’s BE product and service revenues rose 25.9% year over year. Bloom Energy’s total revenues surged 19.5% 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 22.6% in the year-to-date period against the industry’s growth of 13.4%.

From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 3.78X against the industry average of 23.56X. PLUG carries a Value Score of F.

The Zacks Consensus Estimate for PLUG’s bottom line for third-quarter 2025 has remained the same 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.

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