Can Plug Power's Equipment Recovery be a Driver for Long-Term Growth?

Plug Power Inc. PLUG is well-placed to benefit from the recovery in its equipment business, driven by robust sales growth. After a 7% year-over-year decline in equipment and related infrastructure sales in the first quarter of 2025, the company reported a strong rebound in the second quarter, with sales rising 29.2% on a year-over-year basis to $99.2 million.

The surge in electrolyzer demand was the major contributor, with sales more than tripling to approximately $45 million in the quarter. Also, PLUG’s GenEco platform has become the preferred solution for industrial-scale applications across oil refining, chemicals, mining, semiconductors, steel and cement industries. Currently, the company has more than 230 megawatts of GenEco projects ongoing across Europe, Australia and North America.  Also, increased customer activity boosted sales of fuel cell systems, particularly GenSure units.

Despite these advancements, several product lines remained under challenge. Hydrogen infrastructure revenues declined 12.4% year over year in the second quarter due to fewer site installations. Cryogenic equipment and liquefier sales decreased 13.3% in the same period, owing to project delays. Engineered oil and gas equipment from the Frames acquisition also reported lower revenues during the quarter.

Nevertheless, Plug Power’s equipment business is on an upward trajectory, led by strong demand for electrolyzers and fuel cell systems.  With this business momentum, the company is well-positioned for growth in the long run.

Snapshot of Plug Power’s Peers

Among its major peers, Bloom Energy Corporation’s BE product and service revenues rose 25.9% year over year in the second quarter of 2025. Bloom Energy’s total revenues surged 19.5% year over year in the same period. The growth was fueled by robust demand for Bloom Energy’s solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions.

PLUG’s another peer, Flux Power Holdings, Inc. FLUX reported revenues of $16.7 million in the fourth quarter of fiscal 2025 (ended June 2025). Flux Power’s total revenues increased 25% year over year in the same period, 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.

The Zacks Rundown for PLUG

Shares of Plug Power have gained 46.4% in the year-to-date period compared with the industry’s growth of 32.4%.

From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 8.68X against the industry average of 25.57X. 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 #2 (Buy). 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