US green hydrogen firm Plug Power has increased its full-year revenue growth guidance, claiming it’s on track to achieve positive EBITDAS in Q4 this year.
CEO Jose Luis Crespo told a Q2 earnings call that the company has “never [been] more confident” in where the business is headed.
In the quarter, the company logged revenues of $178m, up 9% from the previous quarter, while improving its gross margin to less than a 1% loss compared to –31% a year earlier and –13% last quarter.
However, those revenues were primarily driven by an 82% increase in services, with its equipment sales segment logging $81.9m – 17.4% less than a year earlier. Fuel sales and power purchase agreement revenues also increased 14.7% and 14%, respectively.
To be able to hit the raised 15% to 16% full-year revenue growth guidance – up from original estimates of 13% to 15% – CFO Paul Middleton said second-half revenue needs to run around 40% higher than the first half, primarily in equipment sales.
Those will be dependent on project-timing variables for contracts to supply the 25MW Barrow green hydrogen project in the UK, Hy2gen’s 275MW project in Quebec moving from engineering to financial close, and progress on Allied Green’s Australia and Uzbekistan projects.
Plug reported opex of $62m, down 50% year-on-year. However, Middleton disclosed to analysts that this figure includes a $39.7m recovery of previously impaired assets.
It comes as the 29-year-old company aims to reach operating income profitability in 2027, after an intense focus on reducing costs.
Plug spent 2022 to 2024 raising billions to build out its own hydrogen production network in the US, betting on federal subsidies and a fast-scaling electrolyser market. When the policy environment reversed, the company abandoned parts of the build-out outright – leading to the sale of project sites in New York and Texas.
“Margins are improving. Cost discipline is holding. Our backlog is growing,” Crespo told investors. “Our cash usage is below what it has been all year, with our near-term liquidity outlook strengthened by the asset monetisation process now coming in, and the regulatory and commercial tailwinds behind our electrolysers business are only getting stronger.”
